Bordesley

Refer RNS Announcements for latest updates on Bordersley

Introduction

The Bordesley Project (“Bordesley”) is the first Reserve Power (“RP”) project acquired by MED and is now in the construction stage with an anticipated completion and in steady-state production by Q2 2022. Boresley is a 5 MW gas powered RP site  extendable to 19.12 MW located in Central Birmingham.

General

  • 25-year lease hold site with planning and permitting in place for the installation of a 5 MW synchronous gas-powered reserve power generation facility with ancillary infrastructure, Balance of Plant and gas and electrical connections.
  • Tenancy agreement in place.
  • Grid Connection Offer in place.
  • Gas Connection Offer in place.
  • Defined EPC Scope of Works completed.
  • Defined Balance of Plant Scope of Works completed.
  • Advanced Engineering, Procurement, and Construction (‘EPC’) solution agreed and accepted, inclusive of a GAP analysis of works not covered in EPC and Balance of Plant.
  • Construction of Plant has commenced under the guidance of the Project EPC contractor, Clarke Energy and Owner’s Engineer, Encora.

Revenue Creation and Commercially Attractive

  • Optionality of shared infra-structure with Pyebridge currently being evaluated to optimise revenues from two closely located RP plants with a combined production capacity of 14.12 MW.

Guaranteed Income

  • Revenue will be created by selling electricity generated to blue chip off-taker in terms of existing contractual arrangements MED have in place into rapidly growing target market.

Mitigate Investment Risk

  • Materially, through entering into a long-term tenancy agreement with planning consent in place detailing technical specifications coupled gas and electrical connections and a clear route to market.
  • Shared infrastructure and reciprocal intercompany sale of electricity due to excess Pyebridge capacity.

Project Acceleration

  • Shared infrastructure creates an opportunity to establish Bordesley reserve power project into production resulting in significantly lower Capex than currently planned for.
  • Potential of additional 2 MW electricity export by increasing generating capacity by introduction battery storage.
  • Debt funding facility in place with Close Brothers to finance debt funding component of development and operations.

Project Development

  • In respect of the overall development plan for the MED reserve power portfolio, Bordersley’s competitive price, economic, commercial and technical merits provide a strategic fit with MED’s development strategy.

Strategic Platform

  • From which MED can significantly accelerate the development of its project portfolio by developing multiple sites simultaneously.

Rapidly Growing Target Market

  • Increasing volatility arising from structural shift from fossil fuels to renewable sources and rising spend on gas & electricity is resulting in tight capacity margins during peak times.