In a statement on Thursday, Regency said that it has agreed to buy out the minority shareholders' 20% stake, in “the first of many shaping moves as our new executive team look to accelerate first revenue from our core projects”.
In exchange for selling their stake in AES to Regency, the minority shareholders will be issued close to 2.5mln new ordinary shares in the company, once the planned 1-for-100 share consolidation takes place on 24 December.
The AIM-listed company is attempting to refocus the business around battery metals, including its flagship Mambare nickel-cobalt project and its UK energy storage business, putting its coal and US gas assets up for sale.
“Regency is positioning itself as a first mover in the UK energy storage space, complementing its existing interests in battery metals,” said the company, calling storage a “critical component of the energy transition as power networks and energy markets evolve to accommodate changing demand and supply profiles, decarbonisation and the emergence of EVs”.
A series of UK based energy storage projects have already been identified, the first of which involves installing a "peaker plant" at a development site near Liverpool, the Southport Energy Centre, which runs at a higher price, only when there is high demand for power.
Regency reckons that it could generate first revenue within a “short timeframe” once initial work is finished to install 9MW of gas-powered electricity generation, matched with batteries capable of storing 2MW of electricity.