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ILI Energy Storage

Interest rate 10.0% a year
Term 3 yrs and 3 mths
Total Invested £1.6m
902  investors
Maturity date 29 Dec 2022
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Developing new energy storage capacity for a zero carbon electricity network

ILI Energy Storage supported the development of a pipeline of pumped storage hydro sites and lithium-ion battery storage projects in Scotland. Energy storage technologies are an important complimentary requirement as we look to balance energy supply and demand and increase grid stability as we increase the number of renewable energy sources and move to a green grid.

Pumped storage hydro is a large-scale energy storage technology which is generally used to provide additional electricity generation at short notice in times of high grid demand. Water is released and flows downhill to drive turbines; the water is pumped back uphill again when demand is lower (and electricity prices are lower) to repeat the cycle. As we move towards a green grid the role of storage in balancing supply and demand becomes increasingly important, and pumped storage hydro is the most established storage technology we have.

Intelligent Land originally raised investment on Abundance through ILI Pump Storage (a sister company to ILI Energy Storage) in 2017. This was the second investment from experienced renewable energy developer Intelligent Land Investments Group PLC (Intelligent Land). The investment supported the business as it worked to achieve planning consent for new pumped storage hydro projects in Scotland. Alongside pumped storage hydro projects, Intelligent Land has also been advancing the development of several battery storage sites. The characteristics of battery storage complement pumped storage hydro well, as does development of the projects which are much smaller and therefore more straightforward to consent.

This investment was fully repaid on 29 December 2022.

Key terms

Issuer ILI Energy Storage
Return 10.0% a year
Term period 3 years and 3 months
Start date 1 October 2019
Maturity date 29 December 2022
Capital repayment Lump sum on maturity
Amount raised £1,600,000.00
Secured or unsecured Secured It is important to understand that security does not guarantee repayment of your investment or returns.

Documents

Debenture Deed
Download PDF The debenture deed sets out the legal agreement and terms for this investment.

Payment schedule

This table gives a breakdown of what was paid back on this investment, based on an example investment of £1,000.

Payment schedule table
Payment date Capital repayment Interest Total
30 June 2020 £0.00 £75.06 £75.06
31 December 2020 £0.00 £50.41 £50.41
30 June 2021 £0.00 £49.58 £49.58
31 December 2021 £0.00 £50.41 £50.41
30 June 2022 £0.00 £49.58 £49.58
29 December 2022 £1,000.00 £50.41 £1,050.41
Total £1,000.00 £325.45 £1,325.45

Updates

These updates tell the story of the investment over its life and include information reported to investors by the company or council behind the investment. The updates are provided for informational purposes only and do not constitute an inducement or invitation to invest. Information provided at the time of publishing may no longer be accurate.

An investment return from ILI Energy Storage was paid today.

Please read the full update here

Please read the full update here

An investment return from ILI Energy Storage was paid today.

An investment return from ILI Energy Storage was paid today.

Please read the full update here

We thought it an opportune time to share some news with our investors in debentures issued by both ILI Pump Storage Hydro PLC and ILI Energy Storage PLC.

Further to our previous messages to you, as well as continuing to develop projects that will assist the UK’s transition to decarbonised electricity systems, we have sold some of our projects to established energy infrastructure investors who will build and operate them.

We recently sold the Fordtown 49.9MW project to SUSI Storage Development UK. The buyer is a subsidiary of SUSI, a major infrastructure investor based in Switzerland, that is building a large portfolio of energy storage assets. This follows on from our sale earlier this year of the 49.9MW Camilla project to Abbey Group. These two projects formed the original security package for the £1.6m of debt issued to Abundance investors by ILI Energy Storage PLC. In their place and partly from the proceeds of their sale, the security package now has £800,000 in a reserve account and the 49.9MW Learielaw battery storage project. This means that we have already set aside half the money necessary to repay your debentures.

Also recently, we sold the Blackpark 49.9MW project to Foresight Group. This was part of the security package for ILI Pump Storage Hydro PLC and so, partly from the proceeds of the sale, we now have over £600,000 in a reserve account.

Concerning the Pump Storage projects, we are continuing with preliminary engineering of the Red John project and are entering discussions with potential buyers. Furthermore, we continue to develop our second and third pump storage projects and intend to submit these for planning approval in 2022.

Overall, we are happy to be making progress in developing and selling projects that will help the UK on its way to Net-Zero and remain grateful for your support in enabling us to do so.

With best regards,

Dr Michael Kelly and Mark Wilson,

Directors of ILI Pump Storage Hydro PLC and ILI Energy Storage PLC.

An investment return from ILI Energy Storage was paid today.

Despite the ongoing challenges caused by coronavirus restrictions, we have continued to make good progress. Interest in energy storage is growing rapidly as the importance of the balancing and flexibility services they provide becomes ever more apparent. The broader green agenda has never had more political prominence than it has now, with the upcoming COP26 helping to amplify this even more. We believe that we are well placed to take advantage of the opportunities this creates.

We have sold 2 of our battery assets (Camilla & Fordtown), with a 3rd to follow very shortly. We expect to conclude at least 3 more deals before the end of the year. We are now starting to build cash reserves from these sales to allow repayment of the investment.

Site 1 – ILI (Highlands PSH), Red John - we have now received planning consent from the Energy Consents Unit which marks a major milestone. We've faced a significant number of challenges and hurdles over the 2.5 years since this was submitted and are delighted to have been able to negotiate our way through. We remain in discussions with a number of interested parties and can now provide the package of rights and consents to push this on to completion and an event.

Site 2 - ILI (Borders PSH), Balliemeanoch - a co-operation agreement with the Blarghour windfarm means we can now proceed with the significantly larger project that we always hoped for. We agreed with the Energy Consents Unit to stagger the submissions of the Scoping Reports for this and Corrievarkie, with the Baliemeanoch submission to be made in August. Significant survey work to inform the Environmental Impact Assessment is underway, as are discussions with National Grid & SSE regarding the grid connection.

Site 3 - ILI (Trossachs PSH), Corrievarkie - we held an online public event for the local community in May which was well received. The Scoping Report has been submitted to the Energy Consents Unit and we await feedback on this. Significant survey work to inform the Environmental Impact Assessment is underway, as are discussions with National Grid & SSE regarding the grid connection.

PRESS RELEASE:

Pumped Storage Hydro scheme at Loch Ness gets green light from Scottish Government

Clean Energy Developer ILI Group welcomes Scottish Ministers backing for new Pumped Storage Hydro scheme at Loch Ness

The Scottish Government yesterday (7th June) approved proposals for ‘Red John’, a 450 MW pumped storage hydro scheme on the shores of Loch Ness. The project was subject to a Public Local Inquiry last year with the findings and recommendation from the reporter being submitted to Ministers in February 2021 for consideration.

Approval of this £550m project signals the start of a process which could see hundreds of millions of pounds invested in the local economy and bring up to 700 direct and indirect jobs alongside wider benefits to the local area and Scotland as a whole.

Alongside economic benefits, the broader adoption of long-duration energy storage projects such as this is seen as essential to the further deployment of renewable energy projects across Scotland, with a pipeline of over 5GW of pump storage capacity across several different projects.

Mark Wilson CEO of ILI Group said:

"We are delighted that the Cabinet Secretary for Net-Zero, Energy, and Transport, Michael Matheson, has approved this project. This will help pave the way for hundreds of millions of pounds of investment and hundreds of new jobs in the area and will be another major step in Scotland’s ongoing journey to becoming a leader in renewable energy. This project alone will save over 45 million tonnes of CO2 over its lifetime.

"There is currently a pipeline of over 5GW of pumped storage in the UK but we need to work closely with the UK Government to implement the market mechanisms that are needed to drive investment into these projects to ensure we hit our net zero targets".

Cabinet Secretary for Net Zero, Energy and Transport, Michael Matheson, said:

"The Scottish Government has long been supportive of pumped hydro storage for its role in ensuring resilience in our electricity supplies, and for the tremendous opportunity it provides to unlock the potential of renewable energy and support Scotland’s net zero ambitions.

Scotland is a leader in this field, with excellent hydro-electric power heritage built over the last century and this new scheme at Loch Ness will only add to that. As we add more renewable electricity generation across Scotland, investing in pumped hydro storage will be key to balancing our electricity demand with supply and keeping the system secure, as well as creating high quality, green jobs and enabling a green recovery from the COVID-19 pandemic. That is why we continue to call on the UK Government to take the urgent action required in reserved areas to provide investors with improved revenue certainty and unlock potentially significant investment in new pumped storage capacity in Scotland."

An investment return from ILI Energy Storage was paid today.

Please read the full update here

An investment return from ILI Energy Storage was paid today.

Please read the full update here

We have taken early action to protect our staff and maintain our critical business activities:

  • Since 16th March all our staff have been working from home and finding it is working well
  • We have established effective communication facilities with staff, suppliers, and stakeholders, making use of video conferencing and other virtual means
  • Our Red John PSH project is continuing through the planning appeal process, with the public inquiry now potentially considering written submissions only which might save time
  • Our grid connection and land lease negotiations for our various projects are continuing
  • Our negotiations for sale of battery sites are proceeding with several interested parties

Overall, little disruption to our business is currently evident but we are monitoring developments closely.

Please read the full update here

Please read the full update here

This investment closed today.

ILI Energy Storage opened for investment today.