Project 3

Publicly Announced via RNS 28 Oct 2020.

Mast Energy Developments

Introduction

This site is a Near – Shovel Ready Site in West – Midlands, England and will rapidly be developed towards construction and production enter production once the IPO is completed. This site will add 6MW installed capacity reserve power to the MED stable.

Power Generation Readiness-Near Shovel ready

  • Lease hold site with planning and permitting in place for the installation of a 6 MW synchronous gas-powered reserve power generation facility with ancillary infrastructure and Balance of Plant.
  • The proposed scheme will feed its power into the local distributive network operated by the local distribution network operator thereby avoiding transmission losses.
  • Natural Gas will be delivered to the generators onsite via a connection to the local gas distribution network.

Revenue Creation and Commercially Attractive

  • Progressing Project 3 to shovel ready status and subsequent commissioning of plant into power generation will trigger steady state revenue creation.
    • Benchmarking the project by comparing against third-party financial modelling of similar sized sites indicate attractive and competitive annual revenue streams and IRR.

Guaranteed Income

  • Blue chip off-taker in place.

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.
  • The primary function of the proposed development is to provide power generation into the local distributive network when called upon by the National Grid. Times of generation will match times of peak demand within the local network and generation can be controlled remotely.

Project Development

  • Project 3’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