The subscription from JXTG provides the basis for a long-term collaboration, the investment group said
Gore Street Energy Storage Fund PLC (LON:GSF) is to receive an investment worth £2.83mln from JXTG Nippon Oil & Energy Corporation, Japan’s largest oil company.
In addition, the UK listed trust will raise funds from a separate placing and retail offer via PrimaryBid. The price of the subscription, placing and retail offer has been set at 96.1p, in line with the trust’s net asset value and a small discount to last night’s closing price.
Alex O’Cinneide, chief executive of the company’s investment adviser Gore Street Capital, said the subscription from JXTG provides the basis for a long-term collaboration
“JXTG is the largest oil company in Japan, is expanding its power business from traditional generation to more diversified generation, and Gore Street and JXTG will explore the possibility of working together on various fronts leveraging Gore Street’s expertise on storage technology and JXTG’s expertise in the energy business in Japan,” he noted in a statement.
O’Cinneide said the new placing will allow the company to take advantage of the opportunities opening up in the battery storage sector.
In February, Gore Street said it had a pipeline of 140MW worth of storage projects, but said on Friday’s statement that it expects to update the market shortly on a further 50MW acquisition in Scotland.
Exclusivity has also been secured on a new 20MW asset near London, it added, which is undergoing due diligence, with a further 900MW of projects under consideration.
Gore Street also noted reports that one of its key partners NEC Energy Solutions intends to ‘wind down operations’. This is not expected to have any effect on Gore Street’s established operations or development projects, it said, with NEC’s obligations to existing projects understood to last until 2030 while operational projects remain secured with a parental guarantee.
NEC has also confirmed that it currently has no intention of selling its holding in Gore Street, the company added.
Read More: Gore Street Energy Storage Fund PLC receives investment from Japanese oil major