InfraStrata (AIM: INFA ) said it will continue talks with regulatory authorities in relation to its Abstraction Licence, Discharge Consent & draft Marine Construction Licence application.
The company said it has agreed, as a prudent operator, with the relevant authorities that an additional period of review will be undertaken in relation to the existing Abstraction licence and Discharge Consent, which it believes will complement the overall Marine licence.
The advertised documents, which will be placed shortly and won’t require any further information or consultations, will contain no material change from those previously provided.
After this process has been completed, InfraStrata outlined to investors that it is likely the group will receive a determination on the Marine License will be made in around Q1 2021.
Whilst this process and decision making is not within its own control, it said this is its current view on timescales, following the agreements that have been reached with the authorities.
"Having enjoyed productive discussions with the authorities to reach a mutually agreeable way forward, it is good to gain some clarity around the timescales and see the process moving forward to enable a determination on the Marine License being made.
We remain firmly committed to see this project constructed and help provide Northern Ireland, the Island of Ireland and the wider UK with security of energy supply for the future in an environmentally compliant way,” said John Wood, Chief Executive of InfraStrata.
Shares in InfraStrata have jumped in value by over 20% since the beginning of November 2020 to open at 47.5p this morning following the announcement.
Reasons to Follow INFA
InfraStrata is a London-listed firm focused on the development, commercialisation and operation of advanced high-value strategic infrastructure facilities across the globe.
The group holds a salt cavern gas storage project at Islandmagee in County Antrim, Northern Ireland is a pioneering low-cost fast cycle facility that it believes will provide ‘safe, secure and flexible gas storage that will in time serve the island of Ireland and the UK mainland.’
In May 2020, the company entered into a term sheet with West Face Long Term Opportunities Global Master L.P to acquire Meridian Holdings Co., under which sits the proposed Floating Storage and Regasification Unit Project (“FSRU Project”), located in North West England.
The Project will be the UK’s first to be developed and commercialised. Since more than 30% of the UK’s natural gas supplies arrive via LNG (liquified natural gas) cargoes, the FSRU is positioned to take advantage of LNG arriving in the UK seeking storage and regasification.
The estimated CAPEX for the FSRU Project will be circa £350m-£450m with further CAPEX optimisation planned through value engineering. The CAPEX for the FSRU Project is expected to be funded by putting together a consortium of partners at the project level.
Estimated project revenues come to £80-£100mm annually with a 25-30 year project life.
Discussions with key partners have commenced with a consortium consisting of globally recognised companies involved in the development, construction, operations and commercialisation of regasification terminals worldwide will be formed in due course.
Last week, the group signed a Letter of Intent (“Lol”) with Triumph Subsea Services to build two Windfarm Development Vessels ("WDV”) at a length of 200m and a beam of 35m.
The news follows an announcement last week that Triumph Subsea Services had signed a contract with Croatian shipbuilder Brodosplit to construct a field development vessel.
The vessels will be built with diesel-electric hybrid engines that will eventually transition into hydrogen fuel cells, offering what management considers to be the ‘greenest’ solutions to wind farm developers.
The WDVs will be used for fixed and floating wind farm installations and sub-sea cable laying and providing marine services for offshore carbon capture and green hydrogen projects.
Follow News & Updates from InfraStrata here: