Plutus PowerGen PLC Management Contracts - Two Further 20MW Projects (9766C)

TIDMPPG

RNS Number : 9766C

Plutus PowerGen PLC

21 October 2015

Plutus PowerGen plc / Ticker: PPG / Index: AIM

21 October 2015

Plutus PowerGen plc ('PPG' or 'the Company')

Management Contracts Awarded for Two Further 20MW Projects

Plutus PowerGen plc, the flexible standby power generation developer and operator in the UK, is pleased to announce that it has been awarded further management contracts, for the construction and operation of 20MW flexible stand-by electricity plants, by Portman Power Limited and Valence Power Limited being two major customers of Rockpool Investments LLP ("Rockpool"). Rockpool has invested GBP3.6 million of equity into each company, which brings the total invested by Rockpool's investors into companies to be managed by PPG to GBP25 million.

This agreement increases the number of management contracts granted to PPG to seven, equivalent to 140MW. Under the agreements, PPG will be paid an additional combined GBP300,000 per annum for the management services in addition to an equity stake of 45% in the capital of each company. This lifts PPG's committed annual revenues from these management agreements to just over GBP1m.

Additionally, the Company is pleased to report that nine sites have been provisionally entered for the Capacity Mechanism ('CM') auction. However, on account of the terms and conditions of the CM auction, no assurance can be made whether all nine will meet the required criteria in the stipulated timeframe.

Also, the Company has been in receipt of numerous offers of funding for the development of its portfolio, none of which involve the issuance of shares in the Company but rather in the form of debt and/ or an equity share in the underlying sites. These will be evaluated and in the event of formal agreement, the Company will make an announcement.

Phil Stephens, CEO of PPG said, "While increasing our committed annual revenues, these contracts also represent an important milestone in line with our strategy to deliver 200MW of power as quickly as practicable. We now have management contracts and non-dilutive equity funding secured for seven projects and, as demonstrated by our recent activities and discussions, we continue to progress planning, asset financing and capacity agreement negotiations to facilitate the advancement of our portfolio."

**ENDS**

For further information, please visit, or contact:

 
 Charles Tatnell    Plutus PowerGen plc          Tel: [phone] 
                                                  6562 
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 Phil Stephens      Plutus PowerGen plc          Tel: [phone] 
                                                  6562 
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 Ewan Leggat        SP Angel Corporate Finance   Tel: [phone] 
                     LLP                          0470 
-----------------  ---------------------------  --------------------- 
 Laura Harrison     SP Angel Corporate Finance   Tel: [phone] 
                     LLP                          0470 
-----------------  ---------------------------  --------------------- 
 Felicity Winkles   St Brides Partners           Tel: [phone] 
                                                  1177 
-----------------  ---------------------------  --------------------- 
 Elisabeth Cowell   St Brides Partners           Tel: [phone] 
                                                  1177 
-----------------  ---------------------------  --------------------- 
 

Notes to Editors

Plutus PowerGen plc is an AIM listed company focused on the development, construction and operation of flexible stand-by power generation sites in the UK. At present, the market dynamics for flexible power generation are positive as a result of the continued downward pressure on capacity available to National Grid to balance supply and demand, leading to their announcements about possible power shortages over the next few years.

Flexible power generators such as PPG offer a viable and timely solution to the power capacity shortfall in the UK. To this end, PPG is initially focusing on delivering 200MW of capacity over the next three years and currently has a project pipeline of potential development sites with over 500MW of power generation capacity.

PPG has a straightforward multi-revenue stream model with large and stable counter-parties and is using project/EIS funding through SPVs to finance construction of the generation assets. This structure has the benefit of limiting dilution to plc shareholders as the assets are financed and built.

This information is provided by RNS

The company news service from the London Stock Exchange

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October 21, 2015 07:30 ET (11:30 GMT)