In Phase 4 we are concentrating our efforts on the acquisition of spinning assets meaning that investor’s capital is secured by a fully insured and commissioned spinning asset that is receiving quarterly revenue backed by the UK government Renewables Obligation (RO) scheme and administered by OFGEM (Office of Gas and Electricity Markets), who is a non-ministerial government department, and monthly revenue from the export of energy to the grid, making this a unique and highly de-risked opportunity.
FRE plc will enter into an exclusivity agreement with site owners. This will be for a period of 8-12 weeks where FRE plc has control over the site and opportunity to carry out our due diligence on all aspects of the project. FRE plc can, at any time, end the exclusivity period and either advance the project to “Heads of Terms” or, should the site not pass our rigorous process, will not proceed with a purchase of the site and will not incur any financial penalty. Should FRE plc advance the project to “Heads of Terms” then we will proceed with a full share purchase agreement (SPA) resulting in us buying the site.
FRE Plc is currently focusing on acquiring wind turbine sites built over the past three years that benefit from 20-year UK government subsidies. These wind turbine sites have been installed by a third party, connected to the grid, and are fully operational with a proven track record. This will be beneficial for investors who will be investing into a revenue-generating asset instead of a project that entails construction risk. FRE will conduct an extensive due diligence process over these sites over exclusive 12-week periods. This includes analysing a minimum of 12 months operating and actual production figures and analysis of available wind speed data. FRE plc management will also look to improve the production and efficiency of these sites.