Gore Street Energy Storage Fund, Dubliner Alex O. Cinnéide’s state-backed battery investment vehicle, has raised £150m (€181m) in new funding ahead of the cost of its grid-scale batteries rising between 15% and 30%.
The London-listed company, which has more than 200MW of installed projects in the UK and Ireland, had intended to raise £75m last week but increased its bid after demand from institutional and retail investors led to a significant oversubscription.
O Cinnéide said his firm, which is run by former MEP and Irish presidential candidate Pat Cox, is working to minimize rising battery costs as supply chain problems and the war in Ukraine hit the renewable energy sector.
“The market is growing between 15 and 30 percent. But it depends. We recently specified a solution to be built for us by Nidec (battery storage company) that does not contain nickel in the battery; Therefore, that commodity risk is eliminated,” he said.
In the past, the company, which received €10 million in backing from Ireland Strategic Investment Fund in 2019, has used batteries from Elon Musk’s Tesla, while also working with Siemens and LG.
“We see price pressure at most points in the value chain. Logistics, labor and material costs increase. Given Gore Street’s size in the energy storage market and our strong relationships with our suppliers, we have managed to minimize this impact to date.
“Lithium-ion batteries are in high demand, not only for the needs of the energy grid, but also for the significant increase in the electric vehicle market,” he added.
The company intends to significantly expand its existing portfolio with a project pipeline of 1.3 GW.
“This includes 900MW in the UK, 100MW in Germany and Ireland and 375MW in the US.
Britain’s national grid has said it will need 13GW of batteries on the grid alone, while Ireland will also need more on its electricity grid as it increases its capacity to over 75 per cent for more renewables such as offshore wind.
They help offset the slump by storing excess renewable energy during periods of low demand and feeding it into the grid during peaks in demand.
They also ensure that power is immediately available to keep the grid in balance when the wind stops blowing.
Gore Street could eventually triple the capacity of its projects here in Porterstown and Kilmannock to 90MW from 30MW each, he previously said.
2.5 GW of projects are currently planned in Ireland by other developers including Statkraft of Norway and the ESB.
O Cinnéide’s firm has grown 18-fold since its inception in May 2018, he said. It now has a market cap of £400 million and is targeting a 7% dividend yield.
“The headroom created by this oversubscribed fundraising will allow us to continue pursuing attractive opportunities.
“Our operating assets in four high growth markets and recent acquisitions in Germany and the US are testament to our leadership in this market,” he added.
https://www.independent.ie/business/irish/gore-street-energy-raises-150m-as-grid-scale-battery-costs-prepare-to-soar-up-to-30pc-41557947.html Gore Street Energy raises £150m as grid-scale battery costs prepare to skyrocket by as much as 30 per cent