Plutus PowerGen PLC Heads of Terms with JCB Power Products (6455P)

TIDMPPG

RNS Number : 6455P

Plutus PowerGen PLC

04 September 2017

Plutus PowerGen Plc / Ticker: PPG / Index: AIM

4 September 2017

PLUTUS POWERGEN PLC ("PPG" or the "Company")

Heads of Terms with JCB Power Products

Plutus Powergen Plc, the AIM listed power-company focussed on the development and operation of flexible energy generation ('FlexGen') projects in the UK, has signed a Heads of Terms (the 'Agreement') with leading UK provider of gas and diesel generators, JCB Power Products Broadcrown Limited ('JCB'), to design, procure and supply the required generators for the Company's UK FlexGen Projects (the 'Projects').

Under the terms of the Agreement, both parties will cooperate with the identification and suitability of sites and will leverage their complementary skills and capabilities to bring FlexGen projects into operation.

JCB will assist PPG on the design, procurement and supply of the required generators for each individual FlexGen site and will also provide long term repair and maintenance services. Furthermore, JCB will introduce PPG to JCB Finance Limited, a member of the RBS Group, who specialises in providing asset finance in connection with the acquisition of JCB equipment.

All selected sites being advanced by both parties will be developed within individual SPV structures, with terms negotiated on a per site basis. PPG will be responsible for all commercial contracts and arrangements with respect to power and benefits related to each Project, including inter alia, Capacity Market contract and Power Purchase Agreements and provide overall funding, which may be through JCB Finance Limited or asset finance where appropriate.

This security of supply is an important element of UK energy infrastructure given the rise of intermittent renewable energy, which puts considerable stress on the grid at peak times, increasing the risk of blackouts and brownouts.

PPG's current focus is on completion of the 180MW of FlexGen with Rockpool Investments LLP and the development of approximately 200MW of gas-fired FlexGen projects across the UK. These facilities can be switched on at a moment's notice at times of peak demand and help to mitigate the current and forecast risk of an energy deficit. PPG has a pipeline of over 700MW and is targeting 120MW of diesel to be operational by the end of the year with an additional 60MW which is at the post-planning stage to be built in 2018. PPG also has a potential further 80MW of gas currently without planning which the Company hopes to build on next year.

PPG Executive Chairman Charles Tatnall said, "JCB is a blue-chip company that has the experience and equipment to assist in the roll out of our FlexGen portfolio. It is an ideal commercial partner to supply both gas and renewable green diesel generators for our growth plans. We continue to build strong relationships with companies that understand the UK's energy dynamic and the need for flexible energy generation. With a pipeline of 700MW, we are excited about the future in this highly dynamic and demanding market."

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of this announcement via a Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

**ENDS**

For further information, please visit www.plutuspowergen.com, or contact:

 
 Charles Tatnall   Plutus PowerGen Plc   Tel: +44 (0) 20 
                                          3705 8350 
 Phil Stephens     Plutus PowerGen Plc   Tel: +44 (0) 20 
                                          3705 8352 
 Andrew Craig      Cantor Fitzgerald     Tel: +44 (0) 20 
                    Europe                7894 7000 
 Richard Salmond   Cantor Fitzgerald     Tel: +44 (0) 20 
                    Europe                7894 7000 
 Isabel de         St Brides Partners    Tel: +44 (0) 20 
  Salis             Limited               7236 1177 
 Olivia Vita       St Brides Partners    Tel: +44 (0) 20 
                    Limited               7236 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 due to 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.

This information is provided by RNS

The company news service from the London Stock Exchange

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September 04, 2017 02:00 ET (06:00 GMT)