PPG gets LOI to develop gas-powered energy portfolio
Source - SMW
Plutus PowerGen has signed a Letter of Intent with a specialist UK based energy company to work together to develop a 100MW gas-powered energy generation portfolio.
The agreement, which is subject to contract, will expand the Company's power supply capabilities and is in line with its strategy to become a dedicated merchant supplier and producer of energy for the UK market.
Following completion of the transaction, it is anticipated that five 20MW gas powered sites will be constructed to supply flexible on demand power to the UK grid.
These sites will be developed in tandem with the 200MW diesel power generation portfolio currently being advanced by PPG. It is expected that construction will be funded through debt and (minority) equity, which would enable site development without being dilutive to PPG shareholders.
PPG is committed to exploiting its existing pipeline which is comprised of land capable of hosting approximately 700MW of renewable fuel-powered flexible power generation capacity.
This contemporaneous action to move into gas powered energy generation will diversify PPG's offering, provide an additional revenue stream and further de-risk its business model.