Business
EPC Contracts Confirmation
EPC Contracts Confirmation.
About this update from Gore Street Energy Storage Fund Plc
[{"type":"text","content":"\n \nRNS Number : 9688H Gore Street Energy Storage Fund PLC 21 November 2018 \n\n21 November 2018\nGore Street Energy Storage Fund plc\n(the \"Company\" or \"Gore Street\")\nEPC Contracts Confirmation\nEPC Contracts Secured for Two Most Recent Project Acquisitions\nGore Street Energy Storage Fund (ticker: GSF), London's first listed energy storage fund investing in income producing assets in the UK and internationally, is pleased to announce further progress, having now finalised fully-wrapped Engineering, Procurement and Construction (\"EPC\") contracts for its two UK energy storage projects. The Company is therefore pleased to confirm that the provider is NEC Energy Solutions with the support from Nippon Koei- strategic partners and cornerstone investors in the Company. \nAs outlined in the announcement regarding the acquisition of the two projects on 20 September 2018, Lower Road will be a 10MW \"front of the meter\" project and Port of Tilbury will be a 9MW \"behind the meter\" project co-located with London's Port of Tilbury industrial port facility. Given the concluded terms of the EPC contracts, it is expected that these projects will deliver IRRs in line with the targets set out in the Company's IPO prospectus (\"Prospectus\") which is in the range of 10%-12%. Construction will commence at Port of Tilbury in December 2018 and at Lower Road in January 2019 and both projects will become commercially operational in mid-2019. \nAs stated in the Prospectus, Gore Street has paid an advance of £4.5m to NEC Energy Solutions to use in connection with the purchase of products, equipment and/or services from NEC Energy Solutions. This advanced payment will part finance the total EPC contract value in return for products, equipment and services. \n \nUnder these EPC contracts, NEC Energy Solutions would be providing a 15-year warranty as well as capacity and availability assurance plans. \n \nGore Street is pleased to confirm that over 50% of funds are now committed.\n \nAlex O'Cinneide, CEO of Gore Street Capital, the Company's investment adviser, commented:\n \n\"We are delighted by the strong progress that Gore Street has achieved in continuing to build the UK's first listed diversified portfolio of energy storage opportunities. The EPC contracts are an important milestone in the ...