Corre Energy records €30.2m loss following increase in costs
High staff and administration costs contributed to a loss at Corre Energy last year.
The energy storage company recorded a loss after tax of €30.2m in the year to December 31.
This figure, which was in line with expectations, was primarily driven by employee costs of €5.6m, as well as administration costs of €7m.
Corre Energy’s main business is the development, construction and commercialisation of long duration energy storage projects which are linked to greater use of renewables.
The company reported “strong progress” in 2022 as the energy storage group raised over €10m in fresh funding and developed a number of projects across northern Europe.
Corre Energy raised €10.9m in May 2022, ending the year with €3.4m in cash.
A further €8.9m was raised in a share placing in February of this year.
In December, Corre Energy signed a 15-year deal with Dutch power provider Eneco.
This offtake agreement will see the Dutch company purchase the energy stored at the Zuidwendig Compressed Air Storage facility in the Netherlands .
This facility is set to be completed before July, Corre energy reported.
Corre Energy is also developing a Green Hydrogen Hub in Denmark, which is expected to be finished before the end of the year.
The company said it is now looking at new sites in Germany, with negotiations ongoing.
The business also welcomed the introduction of REPowerEU rules which were set out by the European Union last December.
These objectives provide the opportunity for accelerated permits to be applied to energy storage project.
Corre Energy described the move as a “step forward” for energy storage across Europe.
“EU policymakers show a growing level of interest and support for energy storage as they increasingly recognise the fundamental role that it will play in the energy transition,” Davy analyst Colin Grant said.
It also entered the North American market following the introduction of the Inflation Reduction Act last August.
An investment tax credit, introduced by the US Government at the time, unlocked funding support of around 30pc- 40pc for capital costs related to stand alone energy storage projects. The Canadian Government has also introduced a similar initiative, the company said.
The Inflation Reduction Act also introduced a similar tax credit benefit for green hydrogen production.
Corre Energy now has two project opportunities in the North American region, with plans to close out at least one of these projects next year.
“2022 was about putting in place the building blocks for our growth whilst maintaining prudent capital deployment,” chief executive Keith McGrane said.
“Our standout priority was to progress our key sites to meet customer demand for long-term storage solutions from a rapidly growing renewables sector seeking to secure and balance future electricity supplies.”