Corre Energy signals potential investor interest

Energy storage group Corre Energy has signalled that a takeover or transaction is potentially on the cards.

Corre Energy’s main business is the development, construction and commercialisation of long-duration energy storage projects which are linked to greater use of renewables.

In a statement yesterday, the company said it has received “multiple indications of interest: industrial, strategic and institutional” to invest in the business.

It said that discussions with each interested party remain at an early stage and did not confirm whether interest is for some or all of the business.

“There is no certainty that any investment will be made nor on the size and structure of such an investment,” the company said.

Corre Energy said that it will make further announcements “as and if appropriate”.

Davy analyst Michael Mitchell said interest from investors is “not a surprise”.

“Long-duration energy storage, as a critical infrastructure in the global energy transition, represents a significant and attractive investment opportunity,” he said.

He added that Corre Energy has a “well-developed portfolio of early-stage projects, representing an attractive platform from which to address that opportunity”.

Mr Mitchell pointed to an opportunity for investment on a company-wide or project level.

“Putting in place an appropriate funding solution, at both TopCo and project level, remains a critical part of the company’s longterm value creation approach,” he said.

Shares in the company rose almost 16pc yesterday morning following the announcement.

In January, Corre Energy signed a deal for its first compressed-air energy storage (CAES) facility in Germany.

The agreement will see the company team up with Dutch power provider Eneco.

Eneco will acquire a 50pc interest in the project and will also secure the energy stored at the facility, the first phase of which is located at Ahaus in Germany.

This is the second time Eneco has teamed up with Corre Energy, following the group’s ZW1 project in the Netherlands.

That 15-year offtake agreement, with extension rights, was for the entire storage capacity at the Zuidwending facility in the Netherlands. The company confirmed the commercial close of the first phase of the Zuidwending project last year.