Harmony Energy Income Trust has sold Rye Common Project to Pulse Clean Energy
LONDON, UK: Harmony Energy Income Trust plc, which invests in battery energy storage systems (BESS) in Great Britain, announces that it has completed the sale of its “shovel-ready” BESS development project, Rye Common (99 MW) to Pulse Clean Energy Limited at a premium to its carrying value.
The Rye Common Project was acquired by the Company from Harmony Energy Limited in December 2022 alongside two other “shovel ready” BESS projects, Wormald Green and Hawthorn Pit, which are currently under construction and on track for energisation in Q2 2024 and Q3 2024, respectively.
Given the challenging capital raising environment that has remained following the Government’s ‘mini-budget’ in September 2022, the Company opted to secure funding for the construction of the Hawthorn Pit and Wormald Green projects through the successful increase in its debt facilities with NatWest and Rabobank, as announced in February 2023.
Alternative funding options for the construction of the Rye Common Project were considered including potential vendor financing and other deferred capex structures, however it was ultimately determined by the Board that a sale of the project should also be explored.
The Sale process attracted multiple bidders at attractive prices demonstrating the continued high level of interest for BESS projects with near-term energisation potential.
In aggregate, the proceeds of the Sale coupled with recycled cash previously allocated to this project represents a 1.5 per cent premium to the carrying value of the Rye Common Project as at 30 April 2023 set out in the Company’s interim results.
The Investment Adviser and the Board believe that the successful Sale at this value:
a) Demonstrates the high-quality nature of BESS projects developed by Harmony Energy Limited. The Company benefits from an exclusive right of first refusal over a further 505 MW of pipeline BESS projects controlled by Harmony Energy Limited and in various stages of development; and
b) Validates the Company’s carrying values for projects.
Following the Sale, the Company’s portfolio comprises 395.4 MW / 790.8 MWh across eight BESS projects, of which three are operational and five are under construction.
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