15-year CO2 offtake agreement signed for UK asset

RNS Number : 3928C

VH Global Sustainable Energy Oppt.

11 October 2022

 

VH Global Sustainable Energy Opportunities plc

11 October 2022

VH Global Sustainable Energy Opportunities signs CO2 Offtake Agreement for its UK flexible power plant

VH Global Sustainable Energy Opportunities plc ("GSEO", the "Company") - the London-listed investment company advised by Victory Hill Capital Partners LLP ("Victory Hill") and focused on energy infrastructure that is essential for the global transition towards net zero - is pleased to announce that it has signed a 15-year CO2 Offtake Agreement for its first UK flexible power plant with carbon capture in Nottinghamshire, UK.

The contract is a 'take or pay' offtake arrangement with Buse Gases Ltd ("Buse") - one of the global leading suppliers in the industrial and specialty gas markets - and will involve at least 85 per cent of the food-grade CO2 that is captured on site. Food-grade CO2 has a 99.99% purity rating and can be used by the beverage industry to carbonate drinks amongst other applications. The price agreed by Buse is inflation-linked although the specific pricing terms remain confidential.

This 15-year term contract is believed to be one of the first of its kind and contrasts with the 1-3 year terms typically agreed. The ability to secure such a long-term contract reflects the ability of Victory Hill, working together with Landmark Power, GSEO's operating partner in this asset, to leverage their industry knowledge. The revenue stream derived from this agreement is in addition to the 15-year Power Purchase Agreement in the original investment case for the asset and enhances the expected annual total return for the project to 8%.

Victory Hill and, Landmark Power, continue to explore other opportunities to create additional value for this asset. 

www.vh-gseo.com

The Company's LEI is 213800RFHAOF372UU580.

For further information, please contact:

Edelman Smithfield (PR Adviser)

Ged Brumby   + 44 (0)7540 412 301

Kanayo Agwunobi          [phone]

Victory Hill Capital Partners LLP (Investment Adviser)

Navin Chauhan  [e-mail]

Numis (Joint Corporate Broker)

David Benda   [phone]

Matt Goss

Alvarium Securities Limited (Joint Corporate Broker)

Mark Thompson    [phone]

Eddie Nissen    [phone]

Oliver Kenyon                [phone]

Apex Fund and Corporate Services (UK) Limited (Company Secretary)

Geetika Dayal  + 44 (0)7903 820 161

About Victory Hill Capital Partners LLP

Victory Hill Capital Partners LLP is authorised and regulated by the Financial Conduct Authority (FRN 961570).

Victory Hill is based in London and was founded in May 2020 by an experienced team of energy financiers that have spun-out of a large established global project finance banking group. The team have an established track record built over six years while working together in their previous roles and participating in over $37.1bn in sustainable energy project transaction values, generating over 24.2 per cent. equity returns. In addition, the team has also participated in more than $200bn in transaction values across 91 conventional and renewable energy-related transactions in over 30 jurisdictions worldwide, throughout their individual careers. The average experience per individual is 22 years of relevant energy finance experience.

The Victory Hill team deploys its experience across different financial disciplines in order to assess investments holistically from multiple points of view. The firm pursues operational stability and well-designed corporate governance to generate sustainable positive returns for investors. It focuses on supporting and accelerating the Energy Transition and the attainment of the UN Sustainable Development Goals.

Victory Hill is a signatory of the United Nations Principles for Responsible Investing (UN PRI), the United Nations Global Compact (UN GC) and is a formal supporter of the Financial Stability Board's Task-Force on Climate-related Disclosures (TFCD).

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