20th Mar 2025 12:04
(Alliance News) - Mast Energy Developments PLC on Thursday announced a GBP5 million definitive investment agreement with Powertree Holdings Ltd, formalising a long-term partnership to fund its Hindlip power project.
Shares in Mast Energy were up 42% at 0.27 pence in London on Thursday afternoon.
Mast Energy acquires, develops and operates small-scale, flexible-power generation plants with projects in the UK. Powertree is a joint venture between Hartree Partners Power Holdings (UK) Ltd and Power Balancing Services Ltd.
Under the deal, Powertree will invest up to GBP5 million into the 7.5-megawatt construction-ready Hindlip project. The investment comprises GBP500,000 for a 75% stake in the project's special-purpose vehicle, while the remaining GBP4.5 million will be provided as a secured loan. Mast Energy will retain a 25% stake without further funding obligations.
Mast Energy Chief Executive Officer Pieter Krugel said: "We are very excited about the execution of the investment agreement with Powertree which formalises the growth capital partnership. Powertree have a long, proven track record of being able to successfully fund, develop and operate flexible power plants. Their willingness to enter into a long-term partnership with MED, is testament to our business model and ability to attract quality partners."
Powertree CEO Graham White said: "Powertree is very pleased to form a new partnership with MED. We believe that MED has a portfolio of development assets that will become increasingly important in the net zero energy transition story. Powertree is keen to build on this first investment to build out other MED development assets."
In addition to the investment, Mast Energy announced that its Hindlip site secured a 15-year capacity market contract worth GBP60,000 per megawatt per year, providing a cumulative guaranteed gross profit of around GBP6.3 million, excluding inflation adjustments.
Meanwhile, the company's Pyebridge site also secured new capacity market contracts, bringing its total guaranteed gross profit income to GBP1.73 million. Mast Energy said January trading revenue reached a record high of GBP212,500, including embedded benefits, an 8% increase from earlier estimates.
By Eva Castanedo, Alliance News reporter
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