Corre Energy - Largest Storage Developer in Europe

Corre has announced that they are now the largest developer of energy storage in Europe following the publication of the ten year network development plan by  the European Network of Transmissions System Operators for Electricity. The updated plan includes Corre’s latest project in Germany alongside the two under development in Denmark and the Netherlands, with the combined 100GWh of Compressed Air Energy Storage (CAES) covering c.20% of planned large scale energy projects in Europe over the nex

Corre Energy - Material Progress at Ahaus

Corre is building out its portfolio and today’s announcement shows material progress at the Ahaus site in Germany. This physical de-risking follows the commercial de-risking created by the offtake and equity agreements announced for phase one of the project last month. This progress builds on commercial close for the Danish project GHH announced in December and the Dutch ZW1 project announced earlier last year.

Corre Energy- Offtake and Equity Deal for Ahaus

Corre Energy has significantly de-risked its Ahaus project in Germany with a deal with Eneco. This includes a full long-term offtake for phase one of the project but perhaps more crucially a 50% stake in the equity of the project including development and construction capital. While the full economics have still to be agreed, the securing of a significant tranche of project equity makes project completion more certain and we see the deal as an important milestone for the project. This deal comes

Long Duration Storage Consultation

Policy support for long duration energy storage in the UK looks set to use a cap and floor model which we see as a positive move, helping to reduce funding uncertainty for projects going forward. The consultation identifies a need for long duration flexible electricity capacity of at least 30GW and up to 50GW by 2035, making this an important area of opportunity in the UK power market. The consultation closes on 5th March so we could see final policy being announced during 2024.

2024 Outlook - Clean Energy In 2024

Performance of clean energy shares was weak in 2023 other than in storage. 2024 is likely to see storage continue to perform but renewables, bioenergy and hydrogen could also see an improved environment in the year. While elections in the US and the EU could result in weaker support for clean energy, these are to an extent offset by progress at COP28 and the extent to which electorates recognise climate change in the face of almost unavoidable evidence.

Corre Energy - GHH Achieves Commercial Close

Commercial close at the GHH project in Denmark is a major milestone for Corre adding to the progress earlier in the year on the ZW1 project in the Netherlands and paving the way for FID on these two major projects.

Corre Energy - Siemens Collaboration Agreement

Corre has announced the signing of a global collaboration agreement with Siemens Energy to provide a framework to supply a standardised, scalable multiday compressed air energy storage (CAES) solution. Siemens have market leading compression and expansion technology and Corre are expecting to utilise this expertise to further develop their pipeline of CAES projects amidst a growing global demand for long duration energy storage.

Corre Energy - Progress Backed By Funding

Corre’s interims show a period of strong progress with a capability of delivering 26GWh of compressed air energy storage giving it the largest pipeline of long duration energy storage in Europe and entry into the North American market. An additional €10m funding package supports continued development and the projects themselves are making good progress.

Corre Energy - First US Project Announced

Corre has made its first move in the USA since establishing a US subsidiary in January. The exclusivity agreement to acquire a 280MW project takes potential capacity in construction by 2026 to 1.3GW. Our initial assessment sees the project taking our central case valuation to €5.3 from €4.9.

Corre Energy - Low Prices Enable Cheap Charging

The underlying power prices behaviours that drive Corre’s project economics are starting to behave as we expect. While overall pricing in the first half of 2023 has fallen back from the unusual highs of 2022, the low prices at which long duration storage will pay for charging have been lower and there are more of them. We think these low price periods will grow with renewable energy penetration to the benefit of long duration storage projects such as those being developed by Corre.

Corre Energy - Major German Projects Optioned

Corre Energy has made two important announcements with the commercial close of its initial Dutch project ZW1 and the signing of options on over 500MW of potential compressed air storage capacity in Germany. With key licences and permits already in place on the new German projects we now include these in our central case valuation which rises from €3.9 to €4.9.

Corre Energy - Results Cap Period of Progress

Corre’s full year results cap a period of strong progress and the company is now heading towards significant milestones with commercial closes on ZW1 in H1 23 and on GHH in H2 23. With market and policy support for long duration storage growing both in the EU and the US where the company has launched a subsidiary, Corre offers exposure to a key asset class in the decarbonised energy industry.

Corre Energy - Raise Exceeds Target

Corre has exceeded its fundraising target with gross proceeds of €8.9m against the targeted €7m giving it a potential pool of capital worth €41.4m. This will allow the company to push ahead with its project under development and to actively pursue the project pipeline in Europe and North America.

Corre Energy - Equity Raise Targets €7M

Corre’s announced equity raise gives the company firepower to further the development of its near term projects. With these initial projects running to time the funding also allows the company to continue to purse pipeline opportunities both in Europe and now in North America.

Corre Energy - Modelling ZW1

We see the evolving European electricity market as looking increasingly attractive for storage and for long duration storage in particular. Our analysis of recent prices and estimates of near term future pricing suggests good economics for Corre Energy’s initial project at Zuidwending (ZW1) in the Netherlands.

Supreme (SUP LN) - Record performance, EBITDA ~doubled

Supreme’s FY24 trading update confirms a record performance in the 12 months to 31 March 2024. Organic revenue and profit growth across all four divisions has driven Group revenue +45% YOY to £225m, with FY24 adj. EBITDA almost doubling to ‘at least £38m’, driving record levels of cash generation. Supreme is actively exploring complementary M&A, supported by a debt free balance sheet. Trading on an undemanding FY25 PE of just 6.7x, with a 3.4% yield, we believe downside risks are more than price

Morning Note – 22 April 2024

Supreme+ (SUP, House Stock at 125p) - Supreme, Supreme!

Trading update highlights scale of growth

In a Trading Update for the twelve months to 31 March 2024 Supreme expects to report revenue of c.£225m, and (adj.) EBITDA of at least £38.0m, in line with market expectations, which had been revised upwards during the course of the year and represents almost double the FY23 level. The Group closed the year debt free. Our outlook highlights the extent to which Supreme has expanded, through both acquisition and organic growth during the period. From 2020 to 2024E the Group will have grown sales

SP Angel Spec Sits: FY Trading Update (LTHM)

Headlam Group - Strategy for growth in tougher market

Headlam Group has laid out an ambitious long-term revenue target of between £900m and £1bn, as it seeks to grow its share of the UK floor coverings distributor market. Despite a challenging backdrop due to the low level of residential housing transactions, management is seeking to expand each of its sales channels: Trade Counters, Larger Customers, Regional Distribution and Europe & Other. The FY23 results reflected the more challenging environment and the group trades at a discount to its long-

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

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Hybridan Small Cap Feast - 22 April 2024

22nd April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

VSA Morning Flow Test 19/04/24 (Quadrise)

Quadrise (QED LN) has provided an update on its Utah project with Valkor. Valkor’s partner (Heavy Sweet Oil LLC) has received funding and approval to commence drilling enabling production of 20-40bopd of heavy sweet oil providing QED with samples for production of test scale quantities of MSAR and bioMSAR; the company’s key fuel decarbonising emulsion fuel products. This should derisk the commercial scale ramp up. QED management has highlighted that Valkor has not yet raised the minimum of US$