28
March 2024
SIMEC Atlantis Energy
Limited
("SAE
Renewables", "SAE" or the "Company")
SAE achieves another Battery
Energy Storage System ("BESS") milestone
SAE is pleased to announce that it
has received the first £5m milestone payment under its agreement
with EL (Uskmouth) Limited ("EL"), a subsidiary of FPC Electric
Land.
On 5 December 2023, SAE announced
that it had agreed to sell the freehold land owned by SAE to EL,
for a milestone-linked total gross cash consideration of £9.8m (the
"EL Agreement").
The freehold land sold to EL is
limited to the land used by Quinbrook Infrastructure Partners, for
their 230 MW BESS ("Quinbrook BESS") at SAE's Uskmouth
Sustainable Energy Park.
With the achievement of this first
milestone and the payment of £5m to SAE, EL has now taken ownership
of this land.
The completion milestone required
substantial mobilisation of the main construction phase of the
Quinbrook BESS with the importation of 30,000 tonnes of aggregate
via rail from a local quarry to begin laying the foundation for the
project and raising the levels on site. This was made possible by
the hard work of the SAE team, and all our partners, who are proud
to be bringing new business back onto this critical energy
transition infrastructure site. In particular, this phase included
the first rail carriages coming to the site in nearly 10
years.
The remaining balance of £4.8m
payable under the EL Agreement will be payable against three
further milestones expected to be achieved over the next 12
months.
The freehold land utilised by the
Quinbrook BESS represents only a small proportion of the land owned
by SAE at the Uskmouth site available for BESS project development.
This milestone payment is another demonstration of the value to the
Company and its shareholders of the Uskmouth site for the
development of BESS projects. SAE has identified and is actively
developing a total of over 1GW of further BESS projects at the
Uskmouth site, the development of which would transform the
Uskmouth site and deliver to SAE and its shareholders substantial
value, which could be realised through a combination of development
premiums, income from land leases and future continued
ownership.
Graham Reid, CEO of SAE,
commented:
"This is another milestone hit and
demonstrates how we secure value for our business and shareholders.
We have the knowledge, skills and a fantastic site to deliver an
exciting pipeline of projects that are expected to provide revenue
for the business and increased value for our shareholders in the
long term. This experience and knowledge can also provide a
platform for future growth, and it's a truly exciting time at
SAE."
For
further information, please contact:
SAE
Renewables
Sean Parsons, Director of External
Affair
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+44
(0)7739 832 446
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Strand Hanson Limited (Nominated and Financial
Adviser)
Richard Johnson
Rory Murphy
David Asquith
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+44 (0)20
7409 3494
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Zeus Capital Limited (Broker)
Louisa Waddell
Simon Johnson
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+44 (0)20
3829 5000
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Notes to Editors
SAE Renewables is a global
developer, owner and operator of sustainable energy projects. SAE
owns the world's flagship tidal stream project, MeyGen. SAE is also
the owner of the Uskmouth Power Station site that is being
repurposed into a sustainable energy park, initially housing one of
the UK's largest battery energy storage projects.
https://www.saerenewables.com/