Gore Street Energy Storage sells last tranche of US tax credits

(Sharecast News) - Gore Street Energy Storage Fund announced the sale of its final tranche of US investment tax credits on Monday, securing a total of $84m from its Dogfish and Big Rock projects, surpassing previous guidance and delivering what the company described as "strong commercial terms". The London-listed firm said the transaction completed its monetisation of its US tax credit entitlements, and would see proceeds from the Big Rock project delivered in staged payments.

It said it would receive 50% of the Big Rock credit within days, followed by 25% in the autumn and the remaining balance by the end of 2025.

The initial proceeds would be used to reduce outstanding debt on the Big Rock facility from $90m to $60m, and to fund remaining build-out costs.

Gore Street said the move would lower gearing and reduce borrowing costs.

As a result of the inflow, the board reiterated plans to distribute a further 3p per share to investors in the second half of 2025, paid as two special dividends of 1.5p each.

Payment dates would be confirmed in future announcements.

"The $84m we have secured through these tax credit transfer agreements is a substantial capital inflow, particularly in a market where access to equity remains constrained," said chief executive Alex O'Cinneide.

"Our shareholders will directly benefit from this significant inflow through the payment of special dividends."

O'Cinneide highlighted the improving economics of the energy storage sector.

"The pace of cost declines is now outpacing even what we saw in the solar industry, creating a compelling opportunity for those with the capital and capability to act decisively."

He added that the return on investment for storage augmentation in the company's UK and Irish portfolios was becoming "increasingly attractive".

The fund said it remained focused on deploying capital in markets offering the most potential for long-term value creation.

At 1008 BST, shares in Gore Street Energy Storage Fund were up 3.1% at 65.16p.

Reporting by Josh White for Sharecast.com.