Gore Street Sells Tax Credits for Texas Battery

• Gore Street boosts returns by selling tax credits from its Texas Dogfish battery project, highlighting the financial savvy in renewable energy investments.

Gore Street Energy Storage Fund PLC has announced an agreement to sell the Investment Tax Credits (ITC) associated with its 75-MW/75-MWh Dogfish battery project in Texas. This strategic move is part of the company's efforts to optimize financial returns from its energy storage assets.

The Dogfish battery, located in Texas, is a significant component of Gore Street's portfolio, and the sale of its ITCs is expected to enhance the project's economic viability. This transaction underscores the growing importance of financial instruments like tax credits in the renewable energy sector, particularly in optimizing the profitability of large-scale battery storage projects.

How does selling ITCs impact the financial strategy of Gore Street's Dogfish project?

• Provides immediate capital infusion, enhancing liquidity for further investments or operational needs.
• Reduces the project's overall financing costs, improving return on investment.
• Mitigates financial risk by securing upfront cash rather than relying on future tax benefits.
• Enhances project attractiveness to investors by demonstrating innovative financial management.
• Allows reallocation of resources to other strategic initiatives or projects within the company.
• Strengthens the balance sheet, potentially improving credit ratings and borrowing capacity.
• Aligns with broader financial strategy to maximize asset value and shareholder returns.