Yes, under present definitions, and this is one of the key attractions of the HSKB joint venture, alongside the long dated income.

Through the network of Dukemount Capital’s board of directors / management, and by virtue of its profile in the City of London and internationally, the company has been able to enter the fast growing and strategically important flexible power area. The flexible energy space in the UK is going through a period of change and that allows smaller nimble operators to enter into the space.

After extensive due diligence the board of Dukemount Capital determined that the Alpha Blue Ocean arranged facility will enable the company to fund its share of the HSKB joint venture. The terms of this were compared to many others in this space and were very favourable and the ongoing support from ABO will allow DKE to pursue its goal for further sites to be built out.

Dukemount Capital has received, and continues to receive unsolicited funding proposals from various parties regarding the HSKB joint venture. The board will continue to consider such offers in anticipation of shareholder approval, in the event that the ABO facility is not accepted.

The debt process is well understood for these kinds of sites and will be undertaken immediately that the funding is in place. This should take 6 to 8 weeks maximum and the construction of the sites will begin immediately after that is completed. If this can be run in parallel to any extent in order to speed things up, then it will be.

The sub-contractors to construct the sites are likely to include the EPC Company Smiths Brothers as they have experience of working with the HSKB JV team. The engines themselves are likely to be manufactured by MTU / Rolls Royce, a German subsidiary of Rolls Royce.

These sites can have two contract parts to the revenue generation side, the Capacity Market Contract (CM) and the floor or minimum revenue guarantee from the off-taker who runs the site (typically a utility company) The CM is won in an auction which will take place during the construction process and will begin in 4 years and last for 15 years with CPI linkage. The floors can be in the region of 7 to 10 years from the energisation date of the site, in terms of the long dated income period commencing.

The current pipeline is for 9 sites and there are more behind that coming through the development process.

The Company is targeting getting the full pipeline into construction within the next 18 to 24 months. The sites will take 9 to 12 months to construct and then should produce in excess of 10% yield and climbing from then on. So the aggregate asset value would be well in excess of £100M and be producing £13 to 15M of income a year at least.