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Mast Energy Developments set for IPO

Mast Energy Developments files for IPO to develop sustainable energy plants

Mast Energy Developments (LON:MAST) is set to list on the London Stock Exchange in the coming weeks in what will be a notable IPO in the sustainable energy sector. 

The company will raise up to £5.5m to help fund the expansion of their energy business that focuses on Reserve Power (RP) demand in the UK.

Reserve Power uses low-carbon sustainable gas to produce power at critical periods to ensure the UK meets its demand for electricity. 

Mast Energy Developments are setting out to develop a portfolio of Reserve Power plants throughout the UK. Each plant will produce using clean natural gas that will then be fed into the grid. 

Mast Energy Development have identified a gap in the market left by the UK’s large producers who have neglected the opportunity to build smaller plants to accommodate the change in the UK’s power supply. 

Green Energy Revolution 

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The UK is going through a dramatic shift in the way it generates its power. The need to adopt a lower carbon power generation model means that as fossil fuel plants are being phased out in favour of cleaner alternatives, potential shortfalls are risked in the continuous uninterrupted supply of base load electricity.

Renewable sources such as wind and solar are providing an ever-increasing amount of power to the UK grid, however, the consistency of wind and solar cannot yet be relied upon during the transition from fossil fuels to renewables.

This has created the need for a sustainable solution that can be quickly established to provide power in a targeted manner, and Reserve Power plants do just that by taking up the lag or loss of continuous uninterrupted supply.

Mast Energy Developments

Mast Energy Developments expansion plans will see the roll out of small gas-fired power Reserve Power plants between 5 and 50MW in size that can provide energy within 10 minutes directly into the grid. 

The plants will be unmanned and have the ability to run for long period continuously in line with demand for power.

The proceeds of the IPO will be allocated to the development of specific projects set to launch through 2021 and beyond. 

Kibo Energy spin-off

Mast Energy Developments was previously known as Sloane Energy, a subsidiary of Kibo Energy.

The IPO will see Mast Energy Developments spun out of Kibo Energy with Kibo retaining a 55% interest in the company on the day it floats. 

Sloane Group acquired a 100% interest in Mast Energy Developments in August 2020. 

Louise Coetzee, the current CEO of Kibo Energy, will take up the role of Non-Executive Chairman and Paul Venter will be the CEO.

“Following the LSE Admission of MAST, MAST and Sloane will be in a position to develop its portfolio at scale and pace, as opposed to a project-by-project basis and advance rapidly towards significant revenue generation,” Coetzee said.

“Upon successful completion of the IPO, Sloane will be in a position where it expects to have c.9MW in immediate production and c.20 MW in production within the first six months from listing and adding another c.20 MW in production over the next 6 months. The additional production capacity for the first c.20MW will come from Bordesley and 2nd acquisition sites, as well as the 3rd acquisition, announced on 28 October 2020. The capacity for the 2nd c.20MW is expected to come from a significant project pipeline, currently in an advanced stage of development”.

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