Energy storage investment fund to float on London Stock Exchange

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London-based private equity firm, Gore Street Capital is planning to raise GBP 100 million (US$139 million) through the launch of a fund investing solely in utility-scale projects. The company expects the fund to be admitted to the London Stock Exchange, with its first day of dealings listed as April 12, 2018.

The Gore Street Energy Storage Fund will target a portfolio yield of 3% in its first year, and 7% thereafter. According to Gore Street, the fund will invest in “a diversified portfolio of utility-scale energy storage projects primarily located in the U.K., although the company will also consider projects in North America and Western Europe.”

Gore Street Capital identifies projects utilizing lithium-ion battery technology as its main target for investment, but also states that “the fund is ultimately battery technology agnostic.” The storage fund will launch with a seed portfolio of three assets with a total capacity of 18 MW, and a value of GBP 11.2 million ($15.5 million).

The three projects are all located in the U.K., and feature batteries provided NEC and Tesla. Two – the 6 MWh Boulbly project in North Yorkshire, and the 10 MWh Lower Road project currently under construction in Essex – are 100% owned by the fund, while a third – the 4 MWh in Wales – is 49% owned by the fund.

Strategic partners, NEC Energy Solutions and Nippon Koei have already committed to invest GBP 14 million; and a further GBP 2.4 million is expected to be invested by Gore Street Capital directors and affiliates.

According to Gore Street Capital, the fund aims to have substantially invested funds from the IPO within 12 to 18 months, and has identified a pipeline of more than 60 potential projects for acquisition. This pipeline amounts to 1,340 MW of capacity, 1,077 MW of which is located in the U.K., and 264 MW of which is in North America.

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