- Power company Plutus PowerGen said it had entered into a collaboration agreement with an FCA-regulated investment adviser for the equity funding portion of its proposed initial 80MW and contemplated further portfolio of 160MW of Peaker gas sites in the UK.

The company said it anticipated it would maintain a majority equity interest in its portfolio of gas-powered Peaker sites. The board expected this to be 'significantly larger' than its interests in the current six FlexGen and one gas site portfolio which had been funded by enterprise investment scheme (EIS) investors through Rockpool Investments.

Plutus said it intended to work together with the adviser to initially develop and fund a pipeline of four identified projects totalling around 80MW and that the adviser had been granted exclusivity over these projects until 31 December 2019.

'The collaboration agreement for the equity funding portion of our gas-powered Peaker portfolio is a milestone development for Plutus and is the culmination of extensive negotiations over a long period. The counterparty is highly experienced in the energy generation space and the agreement recognises the potential of the current proposed and contemplated portfolio,' said interim CEO James Longley.

Until the execution of binding terms for the initially contemplated site build out, it said the name of the adviser would remain confidential.

Plutus PowerGen also said it had received notice on 27 August 2019 from the non-executive directors of Rockpool that its management of the existing Rockpool EIS funded sites was to be terminated, on a six-month notice period.

The board believed this would assist in accelerating the sale of the portfolio of six 20MW diesel sites, and one gas site in development, in which the company retained a 44.5% equity stake. It said this should generate 'significant profit' and have an attractive yield potential for investors and potential buyers once capacity mechanism is reinstated.

The company would continue to retain the management of Attune Energy.

At 8:46am: [LON:PPG] Plutus Powergen Plc share price was +0.02p at 0.34p

Story provided by