Joint Venture Signed With HSKB

RNS Number : 2721Z

Dukemount Capital PLC

20 May 2021

 

Dukemount Capital Plc

20 May 2021

Dukemount Capital Plc

("Dukemount" or the "Company")

Joint Venture Agreement with HSKB for Environmental Energy Projects

Further to its announcement of 22 March 2021, Dukemount Capital Plc, the property management and long dated income specialist is pleased to announce that it has entered into a Joint Venture Agreement in relation to flexibility power expert HSKB Ltd ("HSKB"), of which Dukemount non-executive director Paul Gazzard is a founder.  Pursuant to the Joint Venture Agreement, Dukemount will acquire 50% of the issued share capital of HSKB for nominal value.

As part of this process, it is proposed that HSKB will be renamed DKE Energy Holdings Limited. As previously announced, the Joint Venture will initially develop two gas peaking facilities which together will produce around 10MW of power for a total approximate cost of £6.25 million. Dukemount believes that this Joint Venture and the opportunities it presents is an important milestone for Dukemount to meet its projected growth targets.

Dukemount will manage the construction of the two sites and provide its knowledge of long-dated income funding and finance. HSKB brings its technical, operational and market expertise of the UK flexibility power market, as well as access to a pipeline of further deals.

The Joint Venture is targeting Capacity Market contracts for the two sites which should secure a 15-year, CPI linked long-dated income. Dukemount expects the projects to generate revenues for longer than fifteen years. In addition to the two initial sites, there are several further sites under consideration for future development.

Gas peaking and battery storage assets are hugely important to the UK Government's policy of net zero emissions by 2050. As the grid transitions from legacy fossil fuel to more environmentally friendly sources of generating power, such as wind and solar, the intermittent nature of the generation of electricity rises. If there is a drop in generation during peak demands, instead of relying on coal or nuclear to bridge the gap, battery storage sites react immediately shortly followed by gas peaking facilities which can operate for as long as required to satisfy demand.

The Joint Venture will aim to ensure all of its operations are fully compliant with current, Environmental, Social and Governance ("ESG") guidelines and legislation.

Matt Thompson Dukemount CEO said, "Long dated income can be provided from many sectors in business and our business model provides us with the flexibility to investigate and enter many sources of long-dated income. The UK has set ambitious targets for cleaner energy, and we are excited to be able to play a part in this. This Joint-Venture provides the Company with a strong future of revenue growth, with the potential for further deals in this fast-growing and dynamic sector".

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018).

  For further information, please visit  www.dukemountcapitalplc.com  or contact:

Dukemount Capital Plc	Via St Swithins PR
Geoffrey Dart / Matthew Thompson
St Swithins PR (Media and Investor Enquiries)	Tel: [phone]
Gary Middleton	[e-mail]
Peterhouse Capital Limited	Tel: [phone]
Lucy Williams/Duncan Vasey

 

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