On Friday, Regency Mines (LSE:RGM) released an update on its 100% owned subsidiary, EsTeq Limited. The company was formed in 2017 to consolidate some of Regency's interests in the battery storage, battery metals, and energy storage technology space.
EsTeq holds a 5.584% interest in Whitecar Limited, a company renting white Tesla vehicles at six locations across the UK and Norway. The holding is currently worth £462k - up from the original £400k investment - and Regency reports that Whitecar is in discussions with a significant number of strategic and industry partners. Whitecar is a pioneer in the field of Electric Vehicle (EV) rentals and is preparing to expand into Germany in 2019.
EsTeq has also committed £50k to the development of a new project in energy storage and trading, and grid backup, under the name Allied Energy Services Ltd. The company owns 80% of Allied Energy which has secured land lease options over a 0.94 acre site in Knowsley capable of hosting a 20MW facility. Allied Energy has also secured options over three farmland sites in the Liverpool area, each capable of hosting a 25MW energy generating and storage facility.
In addition, Allied Energy has agreed Heads of Terms with a leading property, transport and logistics company for an industrial site in Scotland. The two hectare site is capable of hosting an initial 50MW energy generating and storage facility.
The pre-planning process is underway for all the aforementioned sites with a view to commencing construction of the first facility during Q1 2019. The company is working with battery storage technology and combined heat and power manufacturing companies to devise optimal layouts for each facility.
Early discussions are in progress with potential project finance partners and potential blue-chip clients on the potential of supplying their long-term energy needs. Allied Energy is also in preliminary discussions with a potential JV partner affiliated with Oxford University for the co-location of a Research and Development facility with potential financial support from Scottish Enterprise.
Joseph Jayaraj, EsTeq Executive Director, comments: "Whitecar continues to make progress. At Allied Energy, operations have progressed well during 2018, culminating in the first 20MW project site in Liverpool secured with a long-term lease and planning consent. Grid connection and project finance are expected to follow during Q1 2019.
We are excited by the potential of Esteq's maiden project site, which, together with a number of pipeline projects on the horizon, will assist in better managing the increased demands on UK energy infrastructure".
Author: Stuart Langelaan
Disclosure: The author does not own shares in the company mentioned above