Storage-only fund Gore Street Capital has announced plans for an initial public offering, hoping to raise £100 million to invest in storage projects.
It plans to use storage assets to ‘stack’ a number of different income streams with different counterparties, contract lengths and return profiles. Those include frequency regulation services for National Grid, Capacity Market contracts, TNUoS and DUoS reduction and constraint management to industrial clients, as well as wholesale arbitrage to profit from intra-day wholesale electricity prices.
The fund will have a portfolio of utility-scale storage projects primarily located in the UK. It would also consider projects in North America and Western Europe, but they would not comprise more than 30% of the fund.
The projects will initially be lithium-ion battery technology, from different providers to maintain diversity. But the company is “ultimately agnostic” on storage technology and will look at other battery technologies such as sodium and zinc derived technologies, or other forms of energy storage technology such as flow batteries and compressed air technologies, it said.
The fund so far has three battery projects: Boulby project in Yorkshire, with batteries provided by NEC, the Welsh Cenin plant with batteries provided by Tesla, and the Lower Road Essex facility.