VH Global Sustainable Energy Opportunities plc ("GSEO", the "Company") - the London-listed investment company advised by Victory Hill Capital Partners LLP ("Victory Hill") and focused on energy infrastructure that is essential for the global transition towards net zero - is pleased to announce that it has signed a 15-year CO2 Offtake Agreement for its first UK flexible power plant with carbon capture in Nottinghamshire, UK.
The contract is a 'take or pay' offtake arrangement with Buse Gases Ltd ("Buse") - one of the global leading suppliers in the industrial and specialty gas markets - and will involve at least 85 per cent of the food-grade CO2 that is captured on site. Food-grade CO2 has a 99.99% purity rating and can be used by the beverage industry to carbonate drinks amongst other applications. The price agreed by Buse is inflation-linked although the specific pricing terms remain confidential.
This 15-year term contract is believed to be one of the first of its kind and contrasts with the 1-3 year terms typically agreed. The ability to secure such a long-term contract reflects the ability of Victory Hill, working together with Landmark Power, GSEO's operating partner in this asset, to leverage their industry knowledge. The revenue stream derived from this agreement is in addition to the 15-year Power Purchase Agreement in the original investment case for the asset and enhances the expected annual total return for the project to 8%.