Shares in Aim-listed utility Plutus PowerGen (PPG) lit up today after it announced a funding partnership with an unnamed Big Six energy group.
The major energy supplier has offered to fund up to 20 per cent of any of PPG's 20MW renewable fuel or gas powered energy projects going forward, PPG announced today.
Its shares shot up to a day-high of 3.22p, up 24 per cent on yesterday's close, and were trading up 18 per cent in the mid-afternoon at 3.08p.
PPG, which focuses on developing, constructing and operating flexible stand-by power generation sites in the UK, said the arrangement "fits ideally" with its strategy to deliver projects in which it holds an 80 per cent interest.
The group said it is confident it will be able to fund its portion of the development costs via debt, "particularly given the endorsement of [the] major energy and services company".
Chief executive Phil Stephens said:
This interest from a major utilities company is transformational. Most importantly, it enables PPG to start implementing the next phase of our strategy, which is focused on retaining a much larger share of the value of our projects for the benefit of our shareholders.
It also endorses both our business model, which is focused on delivering a consistent source of power to mitigate the UK’s risk of brown or black outs, and the quality of our projects, given the blue chip nature of the prospective partner.
With our first project recently commissioned and generating revenues, this is a very exciting time for PPG and we look forward to providing updates in the near term as we continue to implement our business plan.
On 8 November, PPG supplied power to the national power grid from its 20MW Plymouth operations for the first time.