Blue chip utility group offers to fund Plutus Powergen projects

Plutus said this fits with the company's strategy to deliver projects in which it holds an 80% interest and the relationship is expected to provide sufficient equity to allow it to develop majority-owned assets while maintaining its zero dilution to shareholders policy.

The group said it was confident it will be able to fund its portion of the development costs via debt, particularly given the endorsement of this utility company.

Chief executive officer Phil Stephens said: “This interest from a major utilities company is transformational. Most importantly, it enables PPG to start implementing the next phase of our strategy, which is focused on retaining a much larger share of the value of our projects for the benefit of our shareholders.

“It also endorses both our business model, which is focused on delivering a consistent source of power to mitigate the UK's risk of brown or black outs, and the quality of our projects, given the blue chip nature of the prospective partner. With our first project recently commissioned and generating revenues, this is a very exciting time for PPG and we look forward to providing updates in the near term as we continue to implement our business plan."

At 0835 GMT, the shares were up 19.2% to 3.10p.