Corre Energy, a Dublin-listed energy storage developer for renewable power firms, has agreed “offtake arrangements” for its GHH project in Denmark.
Offtake agreements are deals with companies who pledge to take energy from the projects on completion, which typically takes about 15 years.
The company said the agreements mark the “commercial close” of the project. The next steps will be to source funding or co-investment partners, on foot of which a final investment decision will be taken.
This is the second commercial close for the company in 2023, having achieved the same milestone at Corre Energy’s ZW1 project in the Netherlands in the first half of the year.
Practical components are now in place, which include land, grid and cavern access arrangements, taking both projects substantially closer to completion.
“Commercial close status significantly de-risks the delivery of each project and supports wider de-risking of our overall portfolio,” the company said.
“It provides a clear pathway towards a final investment decision which delivers revenue to Corre Energy, while the offtake agreements provide the latest evidence of strong customer demand and commercial partner traction.”
Keith McGrane, chief executive of Corre Energy, said: “With a new offtake arrangement and three strategic co-investment partners in advanced negotiation, we round off 2023 having achieved significant progress and key milestones.
“We have delivered our stated plans to achieve commercial close in Denmark and this follows just six months after the same achievement in the Netherlands.
“This is combined with our new projects in Germany, securing an option agreement in the US and signing a global collaboration agreement with Siemens Energy.
“Meanwhile, the new co-investment partnerships will deliver a capital solution on a project-by-project basis while unlocking wider portfolio funding.
“Taken together, the funding and strategic partner progress, our commercial close milestones, our technology and people, and the broader market tailwinds give Corre Energy significant momentum as we head into 2024.”
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