Opportunity to Invest in Energy Infrastructure Battery Energy Storage Developments
Transaction Overview
- Battery Electrical Energy Storage fulfils an essential role in allowing electricity generated by renewable energy sources to be saved and then delivered into the grid at any time during a 24 hour period.
- GEM has assembled a development pipeline of sites suitable for battery electrical energy storage.
- These sites provide the opportunity for significant value gain by achieving planning consent and then divesting to institutional purchasers for onward development.
- The use of funds is to pay for costs associated with planning and to secure grid connections.
- With planning and a grid connection offer secured, sites can be sold to institutional investors who are interested in the significant long term cash flows available. Sites can achieve a significant uplift in value through planning gain (a typical 100MW site can be worth £6.0M to £12.0M post planning).
- Profit to be split 33% investor and 67% GEM.
- Each development site will be secured inseparate special purpose limited company.
- The business is seeking a single or group of investors to provide funding in order to develop the pipeline (a typical site requires circa £70k to£350k, depending on size).
The Opportunity
• Battery Energy Storage is a recognised asset class amongst institutional renewable energy investors.
• Once planning and a firm grid connection offer have been secured, development sites can achieve a disposal consideration typically in a range of £60,000 to £120,000 per MW of grid connection.
• Planning within the greenbelt and on agricultural land is permitted for this development type.
• The management team have extensive experience in renewable projects including the development of Battery Energy Storage, energy from waste, solar and gas peaking plants.
Anticipated Funds Required
• Initial development aimed at identifying suitable locations does not require external funding and consists of:
- Site identification.
- Grid connection research.
- Engagement with National Grid and Distribution
- Network Operators to identify likely connection budget and timescale.
- Once a suitable site has been identified, funding is then required to procure an option over the site, a firm grid connection offer and achieve planning.
- Site legals c£10k to £30k.
- Grid connection deposit c£30k to £150k (largely refundable if a firm offer is not acceptable). o Planning and consultants c£30k to £170k
- Funds required typically range from c£70k for a 50MW site up to c£350k for a 400MW site.
- We anticipate an initial funding requirement of c£250k to £2M depending on the number of sites developed.
Anticipated Return to Investor
- We are offering interested parties 33% of the profit for an investment to cover the costs associated with planning and grid connections.
- Based on a typical single 100MW development, we anticipate a return to investors of circa £1.98M to £3.96M.
Neither the contents of this Information Memorandum, nor any part thereof have been approved by any person authorised pursuant to section 21 of the Financial Services and Markets Act 2000 (“FSMA”). Such approval is, save where any exemption under FSMA or the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (“Financial Promotion Order”) applies, required in respect of this Project Summary. Reliance upon this Information Memorandum by any person for the purposes of engaging in any investment activity may expose that person to a significant risk of losing all property or other assets invested or occurring additional liability. If any person is in any doubt as to the contents of this Information Memorandum they should seek independent advice from a person who is authorised for the purposes of FSMA and who specialises in advising in investments of this kind. THE BILLIONAIRE NETWORK LTD IS UNASSOCIATED WITH THIS OFFER AND ARE PURLEY ADVERTISING THE OPPORTUNITY. PLEASE DO YOUR FULL KYC & DD
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