VH Global Sustainable Energy Opportunities plc (the “Company”)
26 May 2022
VH Global Sustainable Energy Opportunities commits a further £28 million for the acquisition of a second UK flexible power plant as part of the Company’s programme to support the UK’s energy transitions plans to net zero
VH Global Sustainable Energy Opportunities plc (“GSEO” or the “Company”) – the London Stock Exchange listed investment company advised by Victory Hill Capital Advisors LLP focused on energy infrastructure that is essential for the global transition towards net zero – is pleased to announce its commitment to fund the acquisition and construction of a second plant as part of its UK flexible power generation programme initially announced on 9 September 2021.
The second site is located in County Durham and will consist of a 35MW high efficiency combined heat power with carbon capture and re-use plant to provide a clean, net-zero, flexible and dependable electricity solution for the UK’s energy transition. Construction is expected to begin in August 2022.
This second plant, which remains subject to contract, increases the Company’s commitment to the UK flexible power programme up from the £78 million announced on 9 September 2021 to £106 million across both sites. The increased commitment locks in the process for the construction and completion of the second site which will deliver attractive margins from the power and purified CO2 revenue streams and will also benefit from further optimisation opportunities under the offtake power purchase agreements (PPAs) given its larger size. Once operational, it is expected to deliver returns in line with the Company’s target net return of 10%.
The first project in this programme consisted of the construction of a 10MW plant in Nottingham, UK. As previously announced, construction on this plant is now well underway. This stage of the programme is tracking in-line with the £30 millioncommitment and is expected to be fully operational in Q2 2023. Landmark Power is the operating partner of both plants.
Once operational, the plants will be contracted under long term PPAs with well-established energy companies for the power output, and long-term CO2 offtake contracts with large industrial companies for the purified CO2 product. Together, these revenue arrangements will provide the plants with long-term, predictable, inflation-linked revenues.
Following this commitment, the Company is 94% committed or deployed.
Richard Lum, Co-CIO of Victory Hill Capital Advisors LLP, investment adviser to GSEO, said:
“The UK’s plans to hit net zero carbon emissions by 2050 are ambitious. Increasing capacity for dependable net zero power generation is critical if we are to achieve this goal and all the more important if we are also to address the current energy crunch that we are experiencing. The challenge of meeting growing energy demand without resorting to excessive levels of harmful fossil fuels particularly from questionable sources, all in a cost-effective way, is more acute than ever. We hope that these projects will provide a blueprint for future secure energy supply through a highly efficient, flexible source of power that can be called upon when needed, and at short notice, to plug any shortfall in power generation from wind or solar.”
The Company’s LEI is 213800RFHAOF372UU580.
For further information, please contact:
Edelman Smithfield (PR Adviser)
Ged Brumby / Kanayo Agwunobi
Tel: + 44 (0)7540 412 301 / +44 (0)758 101 0560
Victory Hill Capital Advisors LLP (Investment Adviser)
Numis (Joint Corporate Broker)
David Benda / Matt Goss
Tel: +44 (0)20 7260 1000
Alvarium Securities (Joint Corporate Broker)
Mark Thompson / Eddie Nissen / Olver Kenyon
Tel: +44 (0)20 7016 6711 / +44 (0)20 7016 6713 / +44 (0)20 7016 6704
G10 Capital Limited (AIFM)
Mohammed Rahman / Paul Cowland
Tel: + 44 (0)20 7397 5450
Apex Fund and Corporate Services (UK) Limited (Company Secretary)
Tel: +44 7435 829323
About Victory Hill Capital Advisors LLP
Victory Hill Capital Advisors LLP (“VHCA”) (FRN 938594) is an Appointed Representative of G10 Capital Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 648953).
VHCA 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 21 years of relevant energy finance experience.
The VHCA 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.
VHCA 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).