Bordesley Power Ltd

Publicly Announced via RNS 10 December , 12 December 2019 and 17 March, 26 May and 23 July 2020.

Mast Energy Developments

Introduction

This site, which was the first addition to the MED reserve power sites, is a construction ready site which will enter construction once the IPO is completed. This site will add c.5MW installed capacity reserve power to the MED stable.

General

  • 30-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

Revenue Creation and Commercially Attractive

  • Optionality of shared infra-structure with Target 2 provides revenue creation within 2 months post listing.
  • Third-party financial modelling based on 5 MW generating capacity results in Pre-Tax summation of annual revenue stream over project life of £10,060,620 and IRR c. 15%.

Guaranteed Income

  • Off-take agreement with Statkraft Markets GmbH providing a guaranteed floor.

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 Target 2 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.

Project Development

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

Strategic Platform

  • From which MED Plc 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.