Listed Fund Gresham House Energy Storage Fund (Grid) has completed a third-party stock financing of £ 8.6 million to finance the enlargement of the combined 50 MW Glassenbury projects.
The stock financing increases the capacity of the 40 MW Glassenbury A and 10 MW Glassenbury B Battery Energy Storage Systems (BESS) from 38 MWh to 110 MWh, a duration of 2.2 hours.
The building permit has been granted for the projects in Harley, Kent and the construction and battery supply agreements must be signed soon. Grid expects construction to start at the beginning of July and will be completed in December 2025.
Once completed, the increase in Glassenbury is expected to increase the share of the grid in the EBITDA (profit before interest, taxes, depreciation and amortization) by around 22% during the life of the project.
Funds for augmentation were collected by the issue of new shares in Glassenbury, which was previously 100% indirect ownership of Grid. Now UAB E Energy Invest (EEEI) will have 35%, with the network retaining the remaining share.
Ben Guest, Fund Manager of Grid and Managing Director of Gresham House Energy Transition described sharing injections at project level as “an effective way to increase projects and create considerable value”.
Eeei is the investment vehicle of the Strioga Family Foundation, evolved from E Energija, which “” finances and promotes “the growth of sustainable renewable energy sources.
The chairman of Grid, John Leggate, said: “This transaction is considered the first augmentation-driven stock injection at project level for a listed BESS fund. The funds of this transaction will be used to increase one of our shortest duration to more than two hours, which considerably increases the value of Glassenbury.
“This unlocks an innovative path to raise share funds at a project level for GB Bess and supports the continuous progress of Grid in supplying our indicated growth strategy.”
Guest added that the benefit of the augmentation of the Glassenbury projects “will be reflected” in the NAV of 30 June 2025 of Grid.
He has also made a commitment that the investment fund will undertake another seven Augmentations in 2025 and early 2026, financed by Grid’s debt re -financing. Together Guest said that they “will add meaningful to the EBITDA of the portfolio and value in absolute and per share conditions”.
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