Pacific Green has secured a £120m senior debt facility from NatWest and UKIB for the Sheaf Energy Park Battery Energy Storage System (BESS) project in Kent, England. The loan is designed to expedite the integration of renewable energy into the grid and is set for a 10-year repayment period from the inception of commercial operations. This move underscores the increasing demand for storage capacity due to the rapid scale-up of renewables in the UK.
The Sheaf Energy Park BESS project, co-funded by NatWest and UIB through a capex loan, is expected to contribute significantly to the region's clean energy storage capacity. Alongside the adjacent Richborough Energy Park BESS, both parks are anticipated to provide a combined 348.8MW clean energy storage over an estimated 35-year operating lifespan starting from 2025.
Pacific Green acquired full ownership of Sheaf Energy Park in late 2022 for £7.5 million, following an agreement with Tupa Energy in March 2021. The company's subsidiary secured this project under an agreement to develop 1.1GW of BESS projects in the UK. In addition to this acquisition, Pacific Green sold its operational Richborough Energy Park 99MWh BESS site to Sosteneo Fund HoldCo S.à.r.l., expanding its footprint into the Australian market.
Jacob Lloyd, head of specialist asset finance at NatWest, identifies Pacific Green as a rapidly rising independent renewable energy developer. The Sheaf Energy Park project, set to go live by July 2025, is part of Pacific Green's expansion strategy and commitment to renewable energy development in southern England.
InvestingPro Insights
Drawing from InvestingPro's real-time data and expert tips, we can glean additional understanding of Pacific Green's financial landscape. As of Q3 2023, the company had a market capitalization of 0.2M USD and a revenue of 1.39M USD, although the revenue growth was in decline at -68.63%. The company's Price / Book ratio stood at 1.03, indicating a fair valuation relative to its book value.
Two key InvestingPro Tips stand out as particularly relevant to Pacific Green's situation. Firstly, the company has impressive gross profit margins, which is a positive sign of its financial health and profitability. Secondly, despite the company not being profitable over the last twelve months, analysts predict the company will be profitable this year.
It's worth noting that InvestingPro offers a wealth of additional tips and insights for investors. For example, Pacific Green's profile on InvestingPro includes 9 more tips that can provide a more comprehensive understanding of the company's financial health and potential investment risks or rewards.
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