LONDON, UK: Mast Energy Developments PLC, a UK-based flexible power company, has announced that it has signed a joint venture deal with an institutional investor-led consortium, led by Seira Capital Ltd, to develop and operate a portfolio of low-carbon gas generation peaker plants.
The deal, worth £5.9 million initially and potentially rising to £31 million, will see the institutional investor inject all the required capital into the joint venture, while Mast Energy will provide the projects and retain operational control. Mast Energy will also receive a 25.1% stake in the joint venture and a management fee for managing the sites.
The joint venture will initially consist of one project with a generation capacity of 9 MW, which is expected to be completed by 28 July 2023. The parties also plan to finalise terms on a second joint venture, subject to FCA clearance, which would consist of up to four projects with a combined capacity of up to 24 MW.
The institutional investor will receive 90% of the profit of the joint venture until its investment is recovered, after which the profit distribution will return to the equity split.
Mast Energy said that the deal aligns with its strategy to grow its portfolio of flexible power assets and that it intends to use the proceeds from the deal to further develop and acquire projects for the joint venture.