25 March 2024 

Gore Street Energy Storage Fund plc  

(the "Company" or "GSF")  

Increased capacity in a growth market with balance sheet efficiency

The Company has increased its Irish asset base to 385MW, of which 130MW is operational. This incremental capacity secured in a high-value market further adds to the portfolio's diversification.

Gore Street Energy Storage Fund plc, the internationally diversified energy storage fund, is pleased to announce that it has increased its Irish asset base through the acquisition of the remaining 49% in two of its existing Irish projects alongside the addition of Project Mucklagh, a 75MW asset in the Republic of Ireland. The total consideration for these transactions was settled via the issuance of 9,700,000 new Ordinary Shares in the capital of the Company (the "Ordinary Shares") issued at 111.0 pence per Ordinary Share[1], plus cash consideration.

Acquisition of Remaining 49% stake in existing Irish Assets and 75MW Irish Asset Project Rights Secured

The Company has acquired the remaining 49% stake from Low Carbon in two of its existing Irish projects: Porterstown, a 90MW^[2] asset, and Kilmannock, a 120MW^[3] construction asset.  Additionally, the Company has exercised its option with Low Carbon to acquire a 51% stake in Project Mucklagh, a 75MW pre-construction energy storage project located in the Republic of Ireland. The Project has a target energisation date of 2028.

These transactions demonstrate efficient use of capital and the ability of the Company to continue to execute successfully against its strategy of delivering a diversified asset base and driving returns for shareholders. The Irish market has proven to be a consistently lucrative market for the Company, and it is therefore pleased to have secured incremental capacity in this high-value market. Following these acquisitions, the Company's portfolio will comprise 28 projects, with a total capacity of 1,248.2MW of operational and construction assets across Great Britain, Ireland, Germany, Texas, and California.

The Company is pleased to expand its network of long-term strategic partnerships through this activity, with Grid System Services Limited (JV between Low Carbon Ltd and Irish Independent Developers) ("Low Carbon") joining its share register. This follows the Nidec Share Issuance in December 2023. Low Carbon is an internationally recognised developer with projects across the UK, Ireland, Northern America, and mainland Europe. The Investment Manager looks forward to continuing its long-standing relationship with Low Carbon, which also retains its 49% stake in the 100MW combined Mullavilly and Drumkee projects in Northern Ireland alongside its 49% stake in Mucklagh.

Application of New Ordinary Shares

Applications have been made to the FCA for the 9,700,000 new Ordinary Shares, which are being issued under the share issuance authority approved by shareholders at the Company's Annual General Meetings held on 21 September 2023, to be admitted to the premium segment of the Official List and to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on its main market for listed securities. Admission is expected to become effective, and dealings in the new ordinary Shares are expected to commence at 8:00 am on Tuesday, 26 March 2024. Following Admission, the new Ordinary Shares will rank Pari Passu in all respects with the existing Ordinary Shares.

The new Ordinary Shares issued to Low Carbon will be subject to a lock-up and orderly market arrangement, with one-third of the shares locked up until July 2024, a further one third locked up until October 2024, and the final third until February 2025.

Immediately following Admission, the Company's issued share capital will comprise 505,099,478 Ordinary Shares, with no shares held in the treasury. Accordingly, the total number of voting rights in the Company on Admission will be 505,099,478. Shareholders and other investors may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

Pat Cox, Chair of the Company's Board, commented: 

"We are very pleased to further strengthen the Company's relationship with long-term partner Low Carbon, a key partner for the Company since its first international expansion back in 2019. The development platform joins an increasingly varied selection of entities on the Company's register, ranging from wealth managers, institutional and retail investors to other strategic corporations like Nidec, which built upon its existing relationship with the Company in December. This diversity of holders ensures the Company continues to maintain strong partnerships to support its activities across multiple energy storage markets."

Alex O'Cinneide, CEO of Gore Street Capital Limited, the Company's investment manager, commented: 

"This share issuance and acquisition cements our continued commitment to the Irish Market, which has proved very successful for the Company, illustrating the value of the original agreement secured by the Investment Manager in 2019.

"The benefits of the multi-year agreement with Low Carbon have now entered a new stage for the Company as it extends ownership over operational projects in the Republic of Ireland while adding more capacity from Low Carbon's development pipeline. The innovative structure of this ongoing strategic partnership ensures all parties remain motivated to achieve success and maintain the Company's position as a leader in Ireland's energy storage market.

"The capacity covered by the latest agreement joins a well-balanced portfolio with access to a diversified revenue base that is key to the Company's continued growth, alongside considerably low borrowing and healthy balance sheet. We are constantly evaluating the Company's exposure to the markets in which it operates to ensure the portfolio is correctly positioned and optimised to deliver best value for investors. As we build out more capacity in the coming 12 months and beyond, the value of this approach will continue to be demonstrated."

Steve Mack, Chief Investment Officer at Low Carbon, added:

"We are delighted to close this sale transaction on our portfolio of Irish storage assets with Gore Street, who are a long-term strategic partner for Low Carbon in the Irish renewables market. Low Carbon were one of the first movers to develop, build and operate utility scale battery storage in Ireland and this announcement reinforces our track record in delivering exceptional assets and operational performance across our portfolio.

"Furthermore, these assets will play an important role in Ireland's energy mix and act as a building block paving the way for more clean energy to come online helping the country to make progress on its climate change objectives."

About Low Carbon

Low Carbon creates large-scale renewable energy to fight climate change. We're building a net-zero energy company that will protect the planet for future generations. This defining purpose drives us to deliver for our communities, investors, and the environment.

We are a long-standing certified B-Corporation and recognised as gold standard for our environmental impact.

We invest in, develop, and operate solar, wind, energy storage, and energy from waste projects across the UK, Europe, and North America. We're contributing to the world's move to 100% renewable energy by creating and operating 20GW of new capacity by 2030.

Low Carbon is on a mission. Together, we will power tomorrow.

https://www.lowcarbon.com/

For further information:  

Gore Street Capital Limited           

Alex O'Cinneide / Paula Travesso                                                                              Tel: +44 (0) 20 3826 0290  

Shore Capital (Joint Corporate Broker)    

Anita Ghanekar / Rose Ramsden / Iain Sexton (Corporate Advisory)                 Tel: +44 (0) 20 7408 4090  

Fiona Conroy (Corporate Broking)              

J.P. Morgan Cazenove (Joint Corporate Broker)                                           

William Simmonds / Jérémie Birnbaum (Corporate Finance)                              Tel: +44 (0) 20 3493 8000  

Buchanan (Media Enquiries)        

Charles Ryland / Henry Wilson / George Beale                                                      Tel: +44 (0) 20 7466 5000  

Email: gorestreet@buchanan.uk.com  

Notes to Editors  

About Gore Street Energy Storage Fund plc  

Gore Street is London's first listed and internationally diversified energy storage fund dedicated to the low-carbon transition. It seeks to provide Shareholders with sustainable returns from their investment in a diversified portfolio of utility-scale energy storage projects. In addition to growth through increasing operational capacity and a considerable pipeline, the Company aims to deliver consistent and robust dividend yield as income distributions to its Shareholders.  

https://www.gsenergystoragefund.com