May 25 (Renewables Now) - Corre Energy BV, a Netherlands-based company focused on underground energy storage, has raised EUR 10.88 million (USD 11.6m) in gross proceeds through the placing of new shares.
The company has placed 5.88 million shares with institutional and other investors at a price of EUR 1.85 apiece. The shares represent about 8.5% of its share capital prior to the transaction.
Corre Energy, which listed on Euronext Dublin in September 2021, intends to use the net proceeds to support its growth strategy amid strong demand for its long-duration energy storage offerings. More specifically, it will invest in accelerating the development of its current green hydrogen hub project in Denmark in partnership with Eurowind Energy A/S and Gas Storage Denmark, as well as in near-term projects in Germany.
The Danish project will combine large-scale green hydrogen production with two large-scale energy storage solutions -- underground hydrogen storage and compressed air energy storage (CAES). It will be pursuing 2025 capacity targets of 350 MW for electrolysis, 200 GWh for hydrogen and 320 MW for CAES, according to information on the project website.
"Following today's successful placement and last week's very supportive announcement by REPowerEU, our immediate priority at Corre Energy is to accelerate and expand our development portfolio. Our solutions have the potential to transform the use of renewables in electricity production by resolving intermittency issues and enabling organisations and economies to deliver on their climate change and energy self-sufficiency objectives without recourse to fossil fuels,” commented CEO Keith McGrane.
The issue of the shares is conditional on the approval by Corre Energy’s shareholders at a meeting scheduled for June 7. The settlement of the placing is expected to take place on the following day. J&E Davy serves as sole bookrunner.
(EUR 1.0 = USD 1.066)