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Green Globe: UK energy storage fund plans to raise £100M in IPO

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Green Globe: UK energy storage fund plans to raise £100M in IPO

One of the world's first energy storage investment funds is looking to raise £100 million in an initial public offering on the London Stock Exchange.

Gore Street Capital, a private equity firm based in the United Kingdom that specializes in renewable energy, expects to list shares for its energy storage fund on April 12, according to a March 9 financial filing. The company said it will invest in a "diversified portfolio of utility-scale energy storage projects," mainly focused on projects using lithium-ion battery technology. Gore Street Capital will look at projects primarily based in the U.K., but may consider assets in North America and Western Europe as well, the company said.

"The investment sits at the intersection of two big macro themes: the challenges faced by the grid in terms of decommissioning fossil fuels and nuclear and the rise of renewable power which is intermittent; and the rise of electric vehicles," the company's founder Alex O'Cinneide said in an interview with City A.M.

The U.K. has seen energy storage take off as costs continue to fall and the government moves forward with plans to invest £246 million in batteries, according to The Telegraph; one of the region's biggest storage projects, a 50MWh facility in Swindon, was recently approved by local authorities.

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Vestas Wind Systems has nine production facilities worldwide, including one in Colorado.
Associated Press

Vestas Wind Systems A/S is building a wind turbine hub and nacelle factory in Argentina as the wind turbine maker looks to capitalize on Latin America's growing renewable energy market. The assembly facility will be located in the Buenos Aires region, according to the company's March 13 press release, and will create 300 direct and indirect jobs.

Argentina's energy minister Juan José Aranguren said that Vestas' manufacturing expansion in the country shows that the country is "on the right path, providing investors with the confidence and trust needed to invest in our green transition." The country launched an energy reform program back in 2015 with a goal to procure 20% of its electricity from renewable sources by 2020.

Argentina has been an important emerging market for Vestas; in 2017, Argentina and Mexico contributed to about 1,300 MW of orders, according to the company's annual report. New wind energy installations in Argentina are expected to reach 10,000 MW by 2025. According to the Global Wind Energy Council, the Latin American (and Caribbean) wind sector grew 16.8% in 2017, compared to the U.S.'s 8.5% and Europe's 10.4%.

Ørsted A/S is preparing to invest $13 billion in four offshore wind projects with a combined 2,400 MW in capacity in Taiwan. According to WindPower Offshore, the company's CFO Marianne Wiinholt has been meeting with local investors to finalize the developer's financial strategy.

Ørsted would provide capital to complement debt capital from local banks and financial institutions. "We are very committed to the Taiwanese offshore wind market and are interested in engaging in long-term partnerships with local companies," Wiinholt said.

During the company's Feb. 1 earnings call, CEO Henrik Poulsen said that he and his team hope to have a power purchase agreement and permits by 2019 for the Taiwanese projects and reach a final investment decision in 2020.

Elsewhere

* In the United States, General Electric Co. and Denmark-based Vestas will go to court in 2019 over the companies' claims that one infringed on the other's wind turbine patents.

* Recurrent Energy LLC sold its indirect indirect equity interests in three solar projects totaling 235 MW to Korea Electric Power Corp.

* In Germany, utilities RWE AG and E.ON SE are making a deal to swap assets and split up Innogy SE's businesses, but E.ON said it is still committed to renewable energy.

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