Gresham House Energy Storage Fund Completes £8.6mn Equity Funding for Glassenbury Project Augmentation
Why we think this is good
The RNS details a successful £8.6 million equity funding raise by Gresham House Energy Storage Fund to augment its Glassenbury battery storage project. This is a positive development as the funding will be used to increase the project's capacity and duration, which is expected to increase the company's share of the project's EBITDA by around 22%. The project timeline and regulatory approvals also appear to be on track. While the news does not meet the criteria for a 'VERY_GOOD' rating, the equity funding and project augmentation are expected to provide a net present value uplift to the company, making this a good news announcement overall.
Key Points
- Gresham House Energy Storage Fund plc (GRID) has completed a £8.6 million equity funding in its Glassenbury Battery Storage project
- The funds will be used to increase the project's capacity from 38MWh to 110MWh
- The augmentation is expected to increase GRID's share of the project's EBITDA by around 22%
- Planning permission has been granted, and construction and battery supply agreements are due to be signed shortly
- The pre-money valuation reflects the project's valuation as of 31 December 2024, which was reflected in GRID's audited NAV at that date
- The deal completion and site augmentation is expected to provide a net present value uplift to GRID, which will be reflected in the company's 30 June 2025 NAV
Summary
Gresham House Energy Storage Fund plc (GRID) has successfully completed a £8.6 million equity funding in its Glassenbury Battery Storage project. The funds will be used to increase the project's capacity from 38MWh to 110MWh, which is expected to increase GRID's share of the project's EBITDA by around 22%. Planning permission has been granted, and construction and battery supply agreements are due to be signed shortly. The pre-money valuation at which the shares have been issued reflects the project's valuation as of 31 December 2024, which was reflected in GRID's audited NAV at that date. Consequently, the deal completion and site augmentation is expected to provide a net present value uplift to GRID, which will be reflected in the company's 30 June 2025 NAV.