Plutus PowerGen PLC Indicative Partnership with Big Six Utility (6533P)

TIDMPPG

RNS Number : 6533P

Plutus PowerGen PLC

21 November 2016

Plutus PowerGen Plc / Ticker: PPG / Index: AIM

21 November 2016

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

Indicative Partnership with Blue Chip Utility Company

Plutus PowerGen plc, the AIM listed power company focused on the development, construction and operation of flexible power projects in the UK, is pleased to announce that it has received an offer by a leading Big Six multinational utility company to fund up to 20% of any 20MW renewable fuel or gas powered flexible energy projects going forward.

This fits ideally with the Company's strategy to deliver projects in which it holds an 80% interest and this relationship is envisaged to provide sufficient equity to allow PPG to develop majority owned assets while maintaining its zero dilution to shareholders policy. The Board is confident that it will be able to fund its portion of the development costs via debt, particularly given the endorsement of this major energy and services company. This belief is also underpinned by the Company's recent securement of asset financing for the development of its recently commissioned project in Plymouth.

PPG CEO Phil Stephens said, "This interest from a major utilities company is transformational. Most importantly, it enables PPG to start implementing the next phase of our strategy, which is focused on retaining a much larger share of the value of our projects for the benefit of our shareholders. It also endorses both our business model, which is focused on delivering a consistent source of power to mitigate the UK's risk of brown or black outs, and the quality of our projects, given the blue chip nature of the prospective partner. With our first project recently commissioned and generating revenues, this is a very exciting time for PPG and we look forward to providing updates in the near term as we continue to implement our business plan."

**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 
----------------  --------------------  -------------- 
 Ewan Leggat       SP Angel Corporate    Tel: +44 (0) 
                    Finance LLP           20 3470 0470 
----------------  --------------------  -------------- 
 Laura Harrison    SP Angel Corporate    Tel: +44 (0) 
                    Finance LLP           20 3470 0470 
----------------  --------------------  -------------- 
 Elisabeth         St Brides Partners    Tel: +44 (0) 
  Cowell            Limited               20 7236 1177 
----------------  --------------------  -------------- 
 Hugo de Salis     St Brides Partners    Tel: +44 (0) 
                    Limited               20 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 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 by the end of 2017 and currently has a project pipeline of potential development sites with 700MW 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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November 21, 2016 02:00 ET (07:00 GMT)