Pyebridge Steady State Operation and Production

RNS Number : 3578S

Mast Energy Developments PLC

15 November 2021

 

Mast Energy Developments PLC

(Incorporated in England and Wales)

(Registration Number: 12886458)

Share code on the LSE: MAST

ISIN: GB00BMBSCV12

("MED" or "the Company")

15 November 2021

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

MAST 9 MW Pyebridge Reserve Power Project Achieves Steady State Operation and Commences Commercial Production

 

Mast Energy Developments Plc, the UK-based multi-asset operator in the rapidly growing Reserve Power market , is pleased to announce that the recently acquired 9 MW Pyebridge Generation facility's installation commissioning checks have been completed successfully, and the Company's engineers have certified Pyebridge in Commercial Steady State Status as of 15 November 2021.

Route to Market solidifies compelling economics

Based on the MAST optimised financial model, an EBIDTA of c. £488,221 per annum was projected in the Company's RNS of 12 August 2021. This projection has now received validation in the following:

§ Commercial negotiations specific to the Pyebridge Project power purchase agreement ("PPA") have been concluded with MED's preferred investment grade route-to-market provider and off-taker, Statkraft Markets GmbH ('Statkraft')

§ PPA agreed for a term of up to 10 years, with an option to renew, as well as a guaranteed floor off-take for a period of up to 7.75 years that guarantees revenue and provides significant de-risking to the project's investment case.

§ Capacity Market contract worth £60,000/annum (starting October 2021) for 15 years providing value enhancement of £900,000 before Retail Price Index ("RPI") upward adjustment.

§ Revised optimised Internal Rate of Return ("IRR") now expected at 21%.

NOTE: All the financial numbers stated above remain subject to change until such time as actual production figures are available, following a suitable period of steady state production.

Louis Coetzee, MED Non-Executive Chairman, said: "Pyebridge entering Commercial Steady State Status and commensurate revenue creation will demonstrate the commercial and technical benefits derived from an installed and commissioned power generating facility. Commercialising Pyebridge as our first fully operational site is a landmark next step towards the much larger portfolio of 300 MW that MED is aiming to establish in the UK, with a pipeline of sites totalling a further 71 MW currently being assessed, and additional prospective sites being continuously added in line with our expectations set out in the Prospectus issued in April 2021. We are also looking forward to the completion of construction and commissioning of Bordesley and Rochdale as stated in earlier announcements and to the additional revenue flow from these sites in the first half of2022"

MED CEO, Paul Venter, commented: "MED's management team, in tandem with its Owner's Engineer Team of experts which are well versed with reserve power sites, can now focus additional resources on delivering MED's current (c. 20 MW) and future pipeline of available sites (71 MW) on schedule.

Further information on the Company, including the prospectus published in conjunction with Admission, can be found on the Company's website: www.med.energy

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.

ENDS

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

Louis Coetzee	info@med .energy	Mast Energy Developments Plc	Non-Executive Chairman
Jonathan Critchley & Keith Swann	[phone]	Clear Capital Markets	Joint Broker
Chris Hardie & Sarah Mather	[phone]	WH Ireland Limited	Joint Broker

 

END

 

 

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