Hot Features
Premium
Register for streaming realtime charts, analysis tools, and prices.
A New Era of Energy Generation with Mast Energy Developments
“…Raise the flag for Mast Energy Developments, an investment opportunity protecting the UK’s energy security…”
Mast Energy Developments, the vehicle for flexible energy generation projects is IPOing on LSE in March 2021, subject to final FCA approval.
MED, a subsidiary of Kibo Energy Plc, is issuing up to 44,320,000 shares to raise up to £5.5M to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator in the rapidly growing Reserve Power market.
Reserve Power?
Reserve power is the process of timing energy supply so it can be used during periods of peak demand when the national grid experiences shortages.
The UK’s shortage of gas supply and the unreliability of renewables will affect electricity generation, leading to shortages and an increase in prices.
The solution lies in the providers of reserve power, not only because of its clean credentials but the fact it is a reliable and stable source of energy.
Reserve Power offers:
- Smaller grids can only manage smaller power plants, requiring peaking plants to be installed in areas of need.
- A clean and stable supply
- RP plants are distinct from other types due to specific characteristics:
- Small gas-fired power plants less than 50MW in size (diesel also possible but produces high emissions)
- Dispatchable (can be turned on and off quickly to generate power on demand)
- Essential for when system needs additional power quickly due to loss of generation or due to increase in demand
- Able to supply power rapidly (reaction time of under 10 minutes)
- Able to run for long periods continuously
- Operate for limited number of hours per year (approximately 1000)
- Plants comprise multiple small reciprocating engine gensets (1.5-4MW) housed in containers that include noise abatement and control systems
- Plants are unmanned with remote dispatch of gensets through data connection.
There is growing demand for Reserve Energy due to its clean and stable credentials.
- Multiple Reserve Power Revenue Streams
- Growing Demand
- Supportive Regulatory Regime
- Limited Risk
- Alternative Flexible Generation Sources
Bob Roberts, Director of Clear Capital Markets says,
“We are excited to provide our clients with this opportunity to invest in the Initial Public Offering of Mast Energy Development. The sector is extremely popular at present and we believe the enthusiasm towards the sector is going to remain for the foreseeable future”
Kibo intends to maintain a strategic interest in MED post the initial fundraise and Admission of at least 55% ensuring continued upside from future developments.
Retail investors are being offered 25% of the shares being issued.
Key Information
| Company | Mast Energy Developments (MAST.L) |
| Market Capitalisation post-IPO | £23,500,000 |
| Funds Required | Up to £5,540,000 |
| Placing Price | 12.5p |
| Founder Shareholding | 75% |
| Public Shareholding | 25% |
Why Clean Energy
The environmental benefits of the world moving towards clean and sustainable energy sources are enormous. But also as the geo-political world undergoes enormous changes sovereign states need to ensure reliable sources of energy supply. This has been apparent in the markets which have clearly shown as growing awareness and interest in this marketplace.
According to the latest market study on “Clean Energy Market Forecast to 2027 COVID-19 Impact and Global Analysis by Type (Hydro and Ocean Power, Solar Energy, Bioenergy, Geothermal Energy, and Wind Energy) and End User (Residential, Commercial, and Industrial)” the market was valued at US$ 788.36 million in 2019 and is projected to reach US$ 1,229.74 billion by 2027; it is expected to grow at a CAGR of 13.0% from 2020 to 2027
If this looks like something that might fit nicely in your portfolio, more information can be obtained from lead broker Clear Capital Markets.
You can also read more about this IPO by going to Clear Capital Markets and reading this report;
https://clearcapitalmarkets.co.uk/lp/clean-energy-sector/
Contacts for comment:
Bob Roberts Chartered FCSI | Director
Clear Capital Markets,
Broadgate Tower-12 th Floor,
20 Primrose Street,
London
EC2A 2EW
Phone: +44 (0)20 3869 6080
