UK storage fund buys £77 million majority in Irish, Northern Irish projects


UK-based Gore Street Energy Storage Fund is set to acquire the controlling share in a portfolio of energy storage projects totalling 160MW in Ireland and Northern Ireland.

The range of projects includes two 50MW storage facilities in Northern Ireland at Drumkee in County Tyrone and Mullavilly in Armagh, and two 30MW plants in the Republic of Ireland in Kilmannock, County Wexford, and Portersdown, County Kildare.

All are expected to be operational by 2021.

Total funding requirements for the projects, including capital expenditure, construction, and acquisition is approximately £77 million (€87 million) according to Gore Street, and comes with an option to purchase another 190MW of projects in Ireland.

The additional purchase will require funding, which will come via a share offering to raise up to £50 million, of which £31 million is already committed to.

According to Gore Street, £6 million of the £31 million will be invested as part of the share issue,  and a further £25 million is to be invested following the placement by the National Treasury Management Agency (NTMA), which is the controller and manager of the Ireland Strategic Investment Fund.

Gore Street Energy Storage Fund has also entered into an agreement with the NTMA for up to a £30 million investment by the latter in the former.

Some £5 million will be invested as part of the issue and up to £25 million may be drawn down upon certain criteria being met.

NTMA’s subscription is conditional on, among other things, a minimum fund raise of £15 million in the share issue.

Gore Street Capital is the fund’s investment adviser.

Gore Street Capital chief executive Alex O’Cinneide said: “We intend to take advantage of the large and diverse array of opportunities that we see in our pipeline in the UK, Ireland and internationally.

“The investment in the Irish projects will represent one of Europe’s largest energy storage acquisitions and one of the largest of its kind this year globally.

“The anticipated returns delivered by the acquisition portfolio have the potential to be significantly greater than those targeted by the company in its IPO prospectus.