Megawatt Mosaic Ltd.
Megawatt Mosaic Ltd.
Registered Address:2 Defender Court, Sunderland, SR5 3PE, United Kingdom.
Company number: 14335015
MM is a carve out from an existing BESS and Solar Developer, Cedric Bérard and his Sun Capital Development Partners S.L. team, Suncap.eu with a successful track record of development and Nick Dimmock and his 350 PPM Ltd. team, which means they have hit the ground running and expect to be revenue positive within 6-9 months. It is getting more and more clear that this IS providing the missing link between PV Energy Generation and PV Power Output. (Making the generated Energy useful for the grid, (not only PV), instead of wasting the overcapacity. This will supercharge BESS (Battery Energy Storage Systems), which is much more than just energy storage, and Solar developments across Southern Europe (to start with). All Suncap development business are now being routed through Megawatt Mosaic.
Below the latest Business Development:
10/01/2024:
Explaining video: Megawatt Mosaic Short: Providing the solution for the Grid-problem: Megawatt Mosaic Short.
Megawatt Mosaic Records 1st Year Revenue of €86,596.25
Megawatt Mosaic Ltd is a joint venture between 350 PPM, its team as individuals and the team from an existing and successful Solar and BESS (Battery Energy Storage Systems) pre-construction developer. I say successful, as our partners had a track record of the sale of 17 pre-construction development projects in the three years before they joined Megawatt Mosaic. Pre-construction development is everything that needs to happen before project construction can start.
The fundraise occurred in late 2022 and was completed in Q1 2023. It was not without its issues, as in my opinion we were frustrated by the actions of HMRC regarding SEIS / EIS status and by various crowdfunding platforms that agreed to assist in the raise and then changed their minds. Project pre-construction development had been a goldmine between 2002 and 2012 but was beset by NIMBYism (not in my backyard) from 2012 onwards.
However, the vast increase in offshore wind across Europe makes energy storage projects vital, and accordingly our bet was that the market would open again as grids rushed to provide connection permissions. In some of the strangest instances ever, grid operators were calling us proposing connection solutions.
A brief report update is below. MM is Megawatt Mosaic, which I am sure you guessed.
So, one year in, we along with our partners have analysed 700 potential nodes, picked and developed the best, and MM has received circa EUR 100k revenue. We expect 200K in Q1 2024, which equates to 4 project sales, some of which have been sold before Ready to Build – basically, just on land lease, grid study and environmental impact assessment. This income will allow us to buy out our partners on other future projects, raise institutional project funding, construct and sell.
Here it is in more detail. As of December 2023:
1. MM’s investment in a first wave of projects (5 projects summing 430MWn in Italy) is being divested; this will allow us to generate by March 2024 (previously it was stated December) a 2.5x multiple on invested capital, the first two projects (summing 198MWn) were divested in December, the third project (60MWn) will be divested in January 2024, the fourth project (84MWn) will be divested in February 2024, and the last project (90MWn) will be divested in March 2024
2. MM’s investment in a second wave of projects (5 projects summing 400MWn in Greece) is progressing in its greenfield phase, and we expect to exit the greenfield phase during Q1 2024, with a similar multiple on invested capital (similar to (i) supra)
3. MM has identified a third wave portfolio of BESS projects in Italy that could be held to maturity (this means: developed entirely, constructed, and put in operation), and it is expected to complete that portfolio by March 2024.
The next stage for MM is to complete an institutional fundraise, buy out our partners from the selected projects, who also own a share in the pre-construction development projects and build, own, operate and transfer (sell) the projects. This is the conventional BOOT model, that I was involved in from 2008 through to 2012.
Thus, MM will take the best pre-construction development projects, and build, own, operate and then transfer them.
Thankfully, most of our projects are of significant size, averaging 80 MW per site. So, at 800,000 per MW cost, and valuing up at 1M per MW when constructed, we have 240M of completed projects. Financed by 60% by bank debt, and if we can let them run for a while and chip away at some of the debt and hold onto 30% equity in each, MM should make about 2M per project upon sale if we include our fat EPCM fees.
Judging by the response from institutional investors so far, mostly through contacts of Helen Passfield, who works for 350 PPM and MM and is a Renewable Energy Asset Manager by trade, the next stage of MM’s development should be marginally easier, though I am probably kidding myself. 😊
The main issue will be, that as we fund the build of 300M of BESS projects, how much of the projects MM (and thus, its investors) can hold onto.
Not a bad problem to have.
09/2023:
Megawatt Mosaic and our partners have analysed 744 Italian substations. As of 1 April 2023, we have 1.37GWn in grid capacity request, of which 882MWn is grid authorised. We plan to develop the best sites, sell these on at ready to build stage and expand into other European locations.
As of September 2023:
Our investment in a first wave of projects (five projects totalling 430MWn in Italy) is being divested – this will generate 2.5 times the initial capital investment by December 2023.
Our investment in a second wave of projects (five projects totalling 400MWn in Greece) is progressing in its greenfield phase. We expect to exit the greenfield phase during Q1 2024, with a similar multiple of 2.5 times on invested capital.
Looking ahead, we are working on identifying a third wave portfolio that could be held to maturity so we can develop the site, complete construction and commence operations.
05/2023:
- Currently we are validating about 100 land plots alongside 15 critical high voltage substations.
- About 40 land plots close to the 15 substations have been qualified (environmental risks, natural hazards, man-made infrastructure restrictions, evacuation lines, site access for trucks, etc).
- Initial electrical engineering and BESS project implementation has started.
03/02/2023:
MM is now due to deploy into the first 10 projects, in partnership with other investors and operators, including our main partner, Suncap SL, which has been developing Solar and Bess Projects since 2019 with a 92% success rate to onward sale. In addition, MM has received an offer letter for 100% of construction finance for 30% ownership, for projects that we choose to retain and construct using the BOOT Model (Build Own Operate Transfer).
- MM is targeting a 28 Project Development Pipeline in Year 1, although this will expand with its partners involvement, capitalising on the intermittency of renewables, especially wind.
For investors, it is worth remembering that each site developed by Megawatt Mosaic could lead to an installation of BESS and Solar whose CAPEX is between £30M - £250M per project.
For the latest Information Memorandum or any questions, contact me at mailto:pauld@practitech.com or mailto:pauld@megawattmosaic.com.