Corre Energy, a struggling renewable energy storage developer, announced that the closure of a deal with a potential significant investor might not be accomplished until 2025. The setbacks in negotiations with prospective investors were attributed to the financial revelations that arose in August combined with the company’s review of its principal schemes. Investment bank Rothschild, which has been advising the Dublin-listed, Netherlands-based firm since April in attracting a major external investor, expressed the company’s need for €5 million in temporary loans due to delays in securing the investor.
On Monday, Corre Energy stated that whilst they intend to conclude a type of investment by 2024, a deal may not be settled until 2025 due to the holiday season. Amidst its interim results report, the firm also indicated its new focus on capital spending for two schemes in Germany that have a combined energy output capacity of 640 MW. The enterprise expects the first of these projects to reach a conclusive investment decision by 2026 and commence commercial operation within two to two and a half years afterwards.
Due to regulatory challenges, the company’s formerly advanced undertaking, the so-called Zuidwending project (ZW1) in the Netherlands capable of producing up to 320MW of power, has had its final financial commitment decision delayed by a year and a half to two years. The earliest anticipated financial investment verdict is now at the end of the fourth quarter of 2027, with expected commercial operations commencing up to three years subsequently.
Over the past year, Corre Energy’s shares have plummeted by 90% because of investors’ fears about finances, boardroom departures, and information divulged in August regarding loans made out to its founding shareholder, Corre Energy Group Holdings. These had been guaranteed against shares in the listed venture. Corre revealed that they granted a 19.3% share in the Dublin-listed company to Stream Street, a firm owned by Frank Boyd, a Northern Irish investor, to clear a debt reinforced by shares.
Corre Energy Group Holdings revealed that additional security for other loans was acquired through a pledge of an additional 15.4% stake in Corre. Insiders suggest the lion’s share of the loan money gathered by Corre Energy Group Holdings was reinvested into the company.
Following the emergency financing deal of €5 million in late September, Stream Street along with other investors who contributed have proceeded to solidify board positions. Furthermore, Corre managed to gather an extra €2.58 million by way of an urgent sale of shares in July.
The interim report from the company revealed their net cash was reduced to a mere €300,000 prior to the share sale. Their current net cash is reported to be at €1.4 million.
After conducting an operational review, Corre Energy has commenced a consultation process which might result in job losses as well as possible savings in operational expenses. The company employs people equivalent to 32 full-time positions. In the first half, the company’s operating loss decreased from €6.5 million the previous year to €5.9 million.