Shares in Quantum Data Energy PLC (LSE:MAST) rose 15% to 2.19p after the company outlined progress on funding and construction of its third flexible generation project and provided an update on a separate acquisition.
The London-listed energy developer said it is in advanced discussions with Power Balancing Services over co-funding capital expenditure for its 100% owned Bordersley 5 megawatt flexible generation project.
Agreement in principle has been reached to structure the funding at special purpose vehicle level, with final investment documentation said to be in near-agreed form and expected to be executed shortly.
Typical capital expenditure for a new-build 5 megawatt flexible generation project is around £3.5 million, and management said partnering with an external investor would limit dilution for existing shareholders while enabling the asset to enter commercial production.
Construction preparations are underway, with engineering, procurement and construction proposals received and grid and gas connection works progressing.
Completion of construction and commencement of commercial operations are expected in the fourth quarter of 2026.
Quantum also reported significant progress towards acquiring a 7 megawatt brownfield flexible generation site in England, with due diligence largely complete and contract terms near final form.
Chief executive Pieter Krügel said: “We are delighted with the ongoing positive progress made to get our third flexgen asset constructed and into production.”