Business
Sale of US Investment Tax Credits
Sale of US Investment Tax Credits.
About this update from Gore Street Energy Storage Fund Plc
[{"type":"text","content":"\n\n14th April 2025\nGore Street Energy Storage Fund plc\n(the \"Company\" or \"GSF\")\nSale of US Investment Tax Credits\nGore Street Energy Storage Fund, the internationally diversified energy storage fund, is pleased to announce that its Texan asset, \"Dogfish\", has entered into an agreement for the sale of Investment Tax Credits (\"ITCs\") for a consideration of c.£18-19[1] million of gross proceeds.\nThe transaction is expected to close by the end of June 2025, with the cash received as a single upfront payment shortly thereafter. The pricing announced today aligns with the previous guidance of $60-80 million for both the Big Rock and the Dogfish ITCs.\nThe sale of the Big Rock ITCs continues to progress well, and the Company will provide a further update in the near term.\nThe Board will provide an update to the market in due course with a detailed allocation strategy for excess cash.\nCEO of Gore Street Investment Management, the Investment Manager of the Company, Alex O'Cinneide, commented: \n\"I am pleased to announce this significant milestone for the Company, underscored by the strong pricing and favourable commercial terms we have secured.\nToday's announcement continues our recent progress of execution against the key deliverables which we outlined to shareholders at the start of the 2024/2025 financial year, including the energisation of over 530 MWhs across multiple markets and the successful negotiation of the resource adequacy contract for the Big Rock asset.\nThe fundamentals of the asset class remain robust, supported by increasing structural demand and a favourable policy environment that reinforces the long-term need for energy storage across the multiple markets in which we operate. Given the recent significant geopolitical volatility, we are also pleased to report that a month ago, we hedged our USD income until the end of 2030, whilst we continue to have hedged our Euro income.\nThis significant cash inflow enhances the Company's already strong balance sheet. The strong cash position, low-leverage and disciplined capital allocation, affords the Company multiple options to increase long-term shareholder value, which the Board and the Investment Manager are actively assessing. Among those attractive options are increasing the capacity and duration of existing assets and constructing our pre-cons...