InfraStrata outlines strategy for revenue streams in 2020

InfraStrata plc has provided an update and confirmation of its wider strategy to seek to become revenue-generating during 2020 after taking the Final Investment Decision (FID) for the Islandmagee Gas Storage Project.

In addition to continuing to progress the Islandmagee Gas Storage Project, the company is now involved with potential partners and asset owners to seek to deliver the new project.

The directors of InfraStrata plan for the company to transform itself during 2019 and 2020 into an organization that is no longer a sole project company, but rather a company with multiple projects across various project life cycles. This is in line with the company's intention of diversifying in the gas storage industry and energy infrastructure generally.

The income streams from construction and operational management are planned to be achieved once equity at the project level has been sold down to incoming investors who then intend on retaining the company's management team to carry out construction and operation activities of the project.

Two new companies have recently been incorporated by InfraStrata, which would be utilized as vehicles to facilitate transactions for its new projects.

The company expects to fund the initial costs of technical and commercial due diligence on its new projects through part utilisation of the grant monies of EUR1.6 million (US$1.8 million) due to be received from the EU later in 2019 and from a portion of the back costs on the Islandmagee Project that are expected to be reimbursed on completion of Final Investment Decision by incoming investors as part of a project equity deal for the Islandmagee Project.