· Whirlwind Texas wind asset: expected to reenergise this month
· Ellis Road solar asset: back online
· Strategic Review: continued progress
The Company is pleased to announce progress in relation to asset re-energisation within the portfolio and the ongoing Strategic Review process.
Whirlwind - Texas wind asset
Further to the Whirlwind Update announcement published by the Company on 27 July 2023 (RNS Number: 3265H) and the Q3 2023 Operational Update and Net Asset Value announcement on 2 November 2023 (RNS Number: 2050S), and relating to the 21 June 2023 tornado in Matador, Texas, the Company's 59.8 MW Whirlwind Energy wind farm ("Whirlwind") in Floydada, Texas, has now moved significantly closer to coming back online. The asset management team of Ecofin Advisors, LLC (the "Investment Manager") continues to work with the relevant counterparties to restore generation from Whirlwind following the tornado damage to a nearby substation in June 2023. AEP, the owner of the Matador and Paducah substations, has now finished testing a new transmission line past Matador to Paducah. The Company expects to reenergise by mid-December 2023 (previously anticipated by end November) subject to wind speeds and a number of other variables. The first payment on the Company's business interruption coverage has now been received from the insurance providers and further payments are scheduled to follow, substantially mitigating lost revenue and expenses incurred as a result of the outage.
Ellis Road - Massachusetts solar farm
The Operational Update announcement published by the Company on 29 June 2023 (RNS Number: 3068E) cited a number of operational issues including the recent events at Whirlwind but also corrective maintenance interruptions at some of the solar assets leading to lower-than-expected energy performance. In particular, the Ellis Road solar farm ("Ellis Road") in Westminster, Massachusetts, was subject to rodent infestation. The Investment Manager's asset management team has worked with the operations managers on site to remediate the operational issues, replace and better insulate wiring as needed, and improve asset performance, and is pleased to report that Ellis Road is now back online.
Finally, the Strategic Review announcement published by the Company on 8 September 2023 (RNS Number: 7853L) flagged, alongside the appointment of Marathon Capital ("Marathon") as financial adviser, a process in relation to the sale of the Company's assets which, if successful, would result in an expected return of cash to shareholders, in connection with a winding up of the Company or similar transaction. The Company and Marathon continue to make progress and the Board will make further announcements when appropriate.
There can be no certainty as to the outcome of the Strategic Review or any asset sale process, nor whether any potential transaction or transactions arising could be successfully completed or the valuation at which it or they could be completed. In addition, should a transaction arise that would involve the sale of the Company's assets, it is expected that the implementation of such transaction will be conditional upon shareholder approval at a general meeting of the Company.
The person responsible for arranging the release of this announcement on behalf of the Company is Martin Darragh.