14th Apr 2025 10:34
(Alliance News) - Gore Street Energy Storage Fund PLC on Monday said it has agreed to sell US investment tax credits linked to its Dogfish asset in Texas, expecting gross proceeds of between GBP18 million and GBP19 million.
The London-based investor in utility-scale energy storage projects said the sale is expected to close by the end of June, with payment received in a single upfront sum shortly thereafter.
The pricing is in line with prior guidance of USD60 million to USD80 million for the combined sale of tax credits from both Dogfish and the Big Rock asset.
Gore Street said progress on selling the Big Rock tax credits is continuing and a further update will be provided "in the near term."
Chief Executive Officer Alex O'Cinneide said the deal represents a "significant milestone" and reflects strong execution of the company's strategic priorities. He added that robust fundamentals and supportive policy conditions continue to drive long-term demand for energy storage.
"The strong cash position, low leverage and disciplined capital allocation afford the company multiple options to increase long-term shareholder value," O'Cinneide said, including expanding existing projects and building new ones amid falling capital costs.
The company did not disclose the identity of the counterparty to the tax credit sale agreement.
Gore Street said it will update the market in due course on how it plans to allocate the incoming funds.
Shares in Gore Street were up 5.9% at 56.99 pence in London on Monday morning.
By Eva Castanedo, Alliance News reporter
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