LONDON, UK: Mast Energy Developments Plc has finalized and entered into a definitive Sale and Purchase Agreement to acquire a 100% interest in Rochdale Power Limited, a Special Purpose Vehicle (SPV) from Balance Power Projects Limited, for the installation of a 4.4 MW flexible gas power project in Dig Gate Lane, Rochdale, OL 16 4NR.
The acquisition costs of the freehold amounts to £90,000 and the property rights amount to £132,000, totalling £222,000 and will be funded from the current MED working capital budget.
Louis Coetzee, CEO of Kibo, said: “The acquisition of this 4.4 MW gas power project will represent the third site in MED’s growing portfolio of flexible power plants in the UK. With increasing supply/demand volatility, the Reserve Power market is the fastest growing energy sector in the UK and accordingly there is significant demand for flexible power projects of this kind and at increasingly attractive economics.
The acquisition of the Rochdale site is the next step towards the much larger portfolio of 300 MW that MED is aiming to establish in the UK. The MED portfolio currently owned by the Company and under active development comprises 18.4 MW of which 9 MW is already in production, with a pipeline totalling a further 71 MW currently under assessment.
We anticipate that the net profit stream from the Pyebridge, Bordesley and Rochdale facilities, totalling 18.4 MW, will be c. GBP 92,000 per month by Q2 2022, the time at which we expect all three sites to be fully operational and in steady state production.”
“We look forward to updating the market with further developments in due course, as we continue to rapidly gain momentum in executing the MED business strategy.”
MED CEO Paul Venter commented: “The acquisition of Rochdale will allow the company to reach its initial production target of c. 20 MW within the time and budget targets set out in the Company’s prospectus. We are currently on schedule and within budget in terms of the development plan for all the sites under active development.”
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13 Aug, 4:30 pm GMT+1 ·Disclaimer