TIDMTRIG
RNS Number : 2399K
Renewables Infrastructure Grp (The)
20 December 2022
a
20 December 2022
The Renewables Infrastructure Group Limited
"TRIG" or "the Company", a London-listed investment company
advised by InfraRed Capital Partners ("InfraRed") as Investment
Manager and Renewable Energy Systems ("RES") as Operations
Manager
Investment in Merkur offshore wind farm and in a battery storage
development
Merkur incremental stake
The Company has exchanged contracts to acquire a further 11%
equity interest in the Merkur offshore wind farm (the "Project"),
which is located in the German North Sea. This incremental
investment is approximately 2% of TRIG's portfolio value. Upon
completion TRIG will hold a 36% equity interest in Merkur and the
total stake in the Project will represent approximately 6% of
TRIG's portfolio by value.
The stake is being acquired from funds managed by InfraRed.
Accordingly, the transaction process included an independent
third-party valuation, which supports the transaction price, and
approval by TRIG's independent Board of Directors.
The Project benefits from long-term protected cash flows through
its Feed-in Tariff agreement. It also increases the Company's
investments in the attractive German renewables market to 11% of
portfolio value. The Project is well aligned with TRIG's portfolio
construction approach of balancing subsidised and unsubsidised
revenues and achieving a broad geographical spread across its
selected European countries.
The Project comprises 66 GE Haliade-150 6MW offshore wind
turbines, and GE Renewable Energy provides Operations &
Maintenance ("O&M") services under a 10-year contract. The
repair and retrofit works associated with the Merkur rear frame
defect first reported in June 2021 are substantially complete and
operating satisfactorily. The compensation due under the
availability warranty for the year ended 31 March 2022 has been
agreed with the turbine and O&M provider, with no financial
impact on the carrying value for the Project.
Battery storage investment
TRIG has also acquired a 100% equity interest in Project
Spennymoor, a battery storage development project which will have a
total capacity of 100MW / 200MWh when completed, from RES.
Project Spennymoor is situated in County Durham, in close
proximity to a high voltage substation connection, and is ideally
located to alleviate grid constraints and provide balancing
services for the significant industrial cluster in the Humber
region, one of six major industrial clusters in the UK.
Project Spennymoor is in the late-stage development phase. RES
has secured planning permission, a grid connection offer and land
lease options. The project has secured a grid connection enabling
commencement of operations in 2031. Work is underway to bring
forward the grid connection date if possible. Construction works
will be timed to commence approximately a year before the
connection date when finalised. Once operational, Project
Spennymoor is expected to represent 2% of TRIG's portfolio by
value. The initial development investment is approximately 10% of
the total anticipated investment.
Richard Morse, Chairman of TRIG, said:
"We are pleased to be further increasing TRIG's stake in Merkur,
a project we know well. Merkur is one of six offshore wind farms in
the TRIG portfolio, and an asset which reinforces our position of
investing in attractive renewable energy projects that contribute
to energy security and decarbonisation efforts across Europe."
Richard Crawford, Head of Energy Income Funds, InfraRed Capital
Partners, said:
"TRIG's investment in Project Spennymoor deepens our position in
the flexible capacity sector, which is going to become increasingly
important as renewables penetration increases. Investments in
battery storage projects such as these not only complement the
renewable generation assets in the portfolio, but also leverage the
strong expertise of InfraRed and RES."
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Richard Crawford
Phil George
Minesh Shah
Mohammed Zaheer
Maitland/AMO +44 (0) 20 7379 5151
Rhys Jones
Charles Withey
Investec Bank Plc +44 (0) 20 7597 4000
Lucy Lewis
Tom Skinner
Denis Flanagan
BNP Paribas +44 (0) 20 7595 9444
Virginia Khoo
Carwyn Evans
The Company
The Renewables Infrastructure Group ("TRIG" or the "Company") is
a leading London-listed renewable energy infrastructure investment
company. The Company seeks to provide shareholders with an
attractive long-term, income-based return with a positive
correlation to inflation by focusing on strong cash generation
across a diversified portfolio of predominantly operating
projects.
TRIG is invested in a portfolio of wind, solar and battery
storage projects across six countries in Europe with aggregate net
generating capacity of over 2.4GW; enough renewable power for 1.7
million homes and to avoid over 2 million tonnes of carbon
emissions per annum. TRIG is seeking further suitable investment
opportunities which fit its stated Investment Policy.
Further details can be found on TRIG's website at
www.trig-ltd.com .
Investment Manager
InfraRed Capital Partners is an international infrastructure
investment manager, with more than 180 professionals operating
worldwide from offices in London, New York, Sydney and Seoul. Over
the past 25 years, InfraRed has established itself as a highly
successful developer and custodian of infrastructure assets that
play a vital role in supporting communities. InfraRed manages
US$14bn+ of equity capital(1) for investors across the globe,
across listed and private funds in both income and capital gain
strategies.
A long-term sustainability-led mindset is integral to how
InfraRed operates as it aims to achieve lasting, positive impacts
and deliver on its vision of Creating Better Futures. InfraRed has
been a signatory of the Principles of Responsible Investment since
2011 and has achieved the highest possible PRI rating(2) for its
infrastructure business for seven consecutive assessments, having
secured a 5 stars rating for the 2021 period. It is also a member
of the Net Zero Asset Manager's Initiative, a certified
CarbonNeutral(R) company(3) , and is a TCFD supporter.
InfraRed is part of SLC Management, the institutional
alternatives and traditional asset management business of Sun Life.
InfraRed represents the infrastructure equity arm of SLC
Management, which also incorporates BentallGreenOak, a global real
estate investment management adviser, and Crescent Capital, a
global alternative credit investment asset manager.
www.ircp.com
(1) Data as at Q2 2022. Equity Capital is calculated using a
5-year average FX rate.
(2) Principles for Responsible Investment ("PRI") ratings are
based on following a set of Principles, including incorporating ESG
issues into investment analysis, decision-making processes and
ownership policies. More information is available at
https://www.unpri.org/about-the-pri
(3) In accordance with The CarbonNeutral Protocol. Further
information is available at
https://carbonneutral.com/the-carbonneutral-protocol
Operations Manager
TRIG's Operations Manager is RES (" Renewable Energy Systems"),
the world's largest independent renewable energy company.
RES has been at the forefront of wind energy development for
over 40 years, with the expertise to develop, engineer, construct,
finance and operate projects around the globe. RES has developed or
constructed onshore and offshore wind, solar, energy storage and
transmission projects totalling more than 22GW in capacity. RES
supports over 9.5GW of operational assets worldwide for a large
client base. Headquartered in Hertfordshire, UK, RES is active in
11 countries and has over 3,000 employees engaged in renewables
globally.
RES is an expert at optimising energy yields, with a strong
focus on safety and sustainability. Further details can be found on
the website at www.res-group.com .
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