Investing to incentivise carbon reductions

RNS Number : 2449J

Triple Point Energy Transition PLC

12 December 2022

 

12 December 2022

Triple Point Energy Transition plc

(the "Company" or, together with its subsidiaries, the "Group")

Sharing best practice in incentivising carbon reductions through investment structures

The Board of Directors of  Triple Point Energy Transition plc (ticker: TENT) is pleased to announce that the Company, alongside Virmati Energy Ltd (trading as "Field"), has partnered with The Chancery Lane Project ("TCLP") to publish a version of the "Interest Ratchet Clause for Carbon Saving" contained within the recent debt facility agreed between the Company and Field in March 2022 (the "Facility"), linking the interest rate to carbon savings.

The Chancery Lane Project is a collaborative initiative of legal professionals, publishing practical contractual clauses that help to mitigate carbon emissions. A user-friendly, peer-reviewed template of the clause will be available on the TCLP portal, to be used in a wide-variety of applications for any company whose operations result in carbon savings. By making this clause publicly available, the Company and Field aim to support companies that avoid carbon in achieving lower costs of capital, accelerating the Energy Transition.

Recognising the opportunity to maximise the contribution of Battery Energy Storage Systems ("BESS") to Energy Transition, the clause, as originally designed, incentivises the asset operator to utilise the systems to balance the supply of intermittent renewables with steady daily demand curves. Carbon savings are maximised, and costs of capital reduced, by preventing the curtailment of renewable generation and reducing demand for gas peaking generation. The linking of interest rate and carbon savings is the first of its kind in the BESS sector.

This innovative interest ratchet clause contributed to the Company and Field winning the Battery Storage of Deal of the Year, at the Inspiratia Awards in November 2022.

John Roberts, the Company's Chair, said:

"We were pleased to offer the interest rate ratchet to Field, the first of its kind in the market, and which followed an extensive collaborative design process. The clause is one of several ESG-related provisions included in the Facility, which also allows for enhanced supply chain visibility, end-of-life cell recycling, and Scope 3 emissions data collection. By making this clause available to all, the Company hopes to facilitate Energy Transition within the wider market."

For further information, please contact:

Triple Point Investment Management LLP Jonathan Hick Christophe Arnoult	[phone]
J.P. Morgan Cazenove (Corporate Broker) William Simmonds Jérémie Birnbaum	[phone]
Akur Limited (Financial Adviser) Tom Frost Anthony Richardson Siobhan Sergeant	[phone]
Sapience Communications (PR Adviser)  Richard Morgan Evans Jamie Gittings	[phone] [phone]

LEI: 213800UDP142E67X9X28

Further information on the Company can be found on its website: www.tpenergytransition.com

NOTES:

The Company is an investment trust which aims to invest in assets that support the transition to a lower carbon, more efficient energy system and help the UK achieve Net Zero.

Since its IPO in October 2020, the Company has made the following investments and commitments:

· Harvest and Glasshouse : provision of £21m of senior debt finance to two established combined heat and power ("CHP") assets, located on the Isle of Wight, supplying heat, electricity and carbon dioxide to the UK's largest tomato grower, APS Salads ("APS") - March 2021

· Spark Steam : provision of £8m of senior debt finance to an established CHP asset in Teesside supplying APS, as well as a further power purchase agreement through a private wire arrangement with another food manufacturer - June 2021

· Hydroelectric Portfolio (1) : acquisition of six operational, Feed in Tariff ("FiT") accredited, "run of the river" hydroelectric power projects in Scotland, with total installed capacity of 4.1MW, for an aggregate consideration of £26.6m (excluding costs) - November 2021

· Hydroelectric Portfolio (2) : acquisition of a further three operational, FiT accredited, "run of the river" hydroelectric power projects in Scotland, with total installed capacity of 2.5MW, for an aggregate consideration of £19.6m (excluding costs) - December 2021

· BESS Portfolio : commitment to provide a debt facility of £45.6m to a subsidiary of Virmati Energy Ltd (trading as "Field"), for the purposes of building a portfolio of four geographically diverse Battery Energy Storage System ("BESS") assets in the UK with a total capacity of 110MW - March 2022

· Energy Efficient Lighting (1):  Funding of c.£1m to a lighting solutions provider to install efficient lighting and controls at a leading logistics company - September 2022.

· Energy Efficient Lighting (2):  Commitment of c.£1m to a lighting solutions provider to install efficient lighting and controls at a leading logistics company, of which £0.3m invested to date - November 2022.

The Investment Manager is Triple Point Investment Management LLP ("Triple Point") which is authorised and regulated by the Financial Conduct Authority. Triple Point manages private, institutional, and public capital, and has a proven track record of investment in Energy Efficiency and decentralised energy projects.

Following its IPO on 19 October 2020, the Company was admitted on the premium listing segment of the Official List of the Financial Conduct Authority and was admitted to trading on the Premium Segment of the Main Market of the London Stock Exchange on 28 October 2022. The Company was also awarded the London Stock Exchange's Green Economy Mark.

 

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