Bordesley Update

RNS Number : 9792I

Mast Energy Developments PLC

08 December 2022

 

Mast Energy Developments PLC

(Incorporated in England and Wales)

(Registration Number: 12886458)

Share code on the LSE: MAST

ISIN: GB00BMBSCV12

("MED" or "the Company")

8 December 2022

Mast Energy Developments PLC ("MED" or "the Company")

 Bordesley Update

Mast Energy Developments PLC, the UK-based multi-asset owner and operator in the rapidly growing Reserve Power market is pleased to announce a further update to its last announcement (see RNS dated 23 August 2022) on its Bordesley peaking power project ("Bordesley" or the "Project") in central Birmingham, which is in early construction stage.

The Company has now fully optimised and has been granted a gas connection route and has also received approval from network supplier, Cadent Gas, for the required pressure and volumes of gas to fuel the Project. The specialist energy connection company, Distributed Energy Connections Limited, have been contracted to provide an all-in gas connection design and construction solution.

Additionally, the Company has concluded an EPC contract optimisation with Clarke Energy, during which it emerged that replacing the currently planned 2 x 2.5 MW Jenbacher engines with 1 x 4.5 MW Jenbacher engine, will provide significant savings in capital construction costs and improve overall engine output efficiencies. The revised EPC configuration more than compensates for the small reduction in the output generating capacity and most importantly, improves the overall financial feasibility of the Project.

With the developments and progress outlined above now in place, the Project's debt funders, Close Brothers (who have signed a capex debt funding term sheet, see RNS dated 20 October 2021), will now resume their due diligence with anticipated financial close targeted during Q1 2023. It should be noted that Close Brothers have already completed a significant portion of their due diligence during late 2021 and early 2022 but paused their process until issues arising from the gas connection route were de-risked to their satisfaction, which has now been successfully done.

Following financial close, the Company will expedite the Project's construction and it is anticipated that Bordesley will be fully constructed, commissioned and in revenue generation by Q4 2023, subject to successful completion of the associated funding process outlined above.

The Project has already secured a 15-year T-4 Capacity Market contract in April 2022 at an unprecedented price of £30.59 /kW/p.a., which will also contribute significantly to the revenue generation from the Project once in steady-state production. Further, based on the latest independent financial modelling performed by the Company's leading energy markets data consultant, EnAppSys, it is expected that Bordesley will generate an average total annual revenue of c. £1.5m.

Pieter Krügel, MED CEO, commented: "We are pleased with the significant progress and developments on Bordesley the past while and most notably that the hurdle to proceed with the Project's capex debt financing process can now be resumed. We are looking forward to financial close which is expected during Q1 2023 and to then expedite the completion of the Project's construction and commissioning during 2023, in order to start generating revenue as soon as possible.

We look forward to providing the market with further updates in due course as we progress."

ENDS

This announcement contains inside information for the purposes of the UK version of the Market Abuse Regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR"). Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information please visit www.med.energy or contact:

Pieter Krügel	info@med .energy	Mast Energy Developments Plc	CEO
Jonathan Critchley & Keith Swann	[phone]	Clear Capital Markets	Joint Broker
Zainab Slemang van Rijmenant	[e-mail]	Lifa Communications	Investor and Media Relations Advisor

 

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