Business
Land Sale, Abundance Bonds & Business Update
Land Sale, Abundance Bonds & Business Update.
About this update from Ampeak Energy Limited
[{"type":"text","content":"\n\n5 December 2023\n \n\n \nSIMEC Atlantis Energy Limited\n(\"SAE Renewables\", \"SAE\", the \"Company\" and, together with its subsidiaries, the \"Group\")\n \n \nFreehold land sale at Uskmouth, proposed Abundance Bonds extension and Business update\n \n \nSale of land to Electric Land\n \nSAE is delighted to announce that it has today signed an agreement with EL (Uskmouth) Limited a subsidiary of FPC Electric Land Ltd for the sale (\"Sale\") of the freehold land owned by SAE and currently leased by a portfolio company of Quinbrook Infrastructure Partners who are constructing the first battery energy storage system (\"BESS\") at Uskmouth Sustainable Energy Park (\"USEP\"), as announced by the Company on 24 May 2023. SAE will receive a total cash consideration of £9.8 million from the Sale. The consideration will be received in a series of milestone payments, linked to the BESS construction progress, throughout 2024 and into 2025. SAE had previously notified its intention to monetise the lease income on the land and the Sale is the culmination of that process, allowing SAE to deliver against its objectives. The Sale also validates SAE's valuation assumptions for the BESS projects available at USEP. As the owner of significant freehold land at USEP, SAE is able to deliver both project development premiums and income from monetising the land leases on future BESS projects.\n \nAs announced on 30 August 2022, SAE entered a revenue sharing agreement with SIMEC UK Energy Holding Ltd (\"SIMEC\") for this first BESS. To close this agreement out, SAE has agreed to pay SIMEC £0.7 million of the received revenue from the £9.8 million for the full settlement of this agreement. \n \nBusiness Update\n \nAt the USEP, progress continues to be made on the additional 120MW BESS project, which re-uses the site of the cooling towers of the former Uskmouth power station. The planning application for this project has been submitted and a decision is expected in Q1 2024. SAE is working with another developer on a 249MW BESS project and has secured additional grid capacity of 349MW. Furthermore, the first BESS project has rights under agreements with SAE to expand from 230MW to 349MW. This brings the total potential capacity at USEP for BESS projects to over 1GW.\n \nAdditionally, SAE is dev...