Gore Street Energy Storage Fund (LSE:GSF) — Full Year Results

0:00 Good morning, and welcome to the GORE STREET ENERGY STORAGE FUND PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the Q and A tab situated in the right hand corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question it receives in the meeting itself. Have the company can review all the questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to Alex Okoneda, CEO. Good morning to you, sir. Thank you. Thank

0:31 you everybody who has joined for our annual results presentation. Today, I am joined by three of my colleagues, Alicia, principal on our technical side, Paula, principal on our corporate development, Sumi, our chief investment officer, and myself, Alex Okenega. We're very pleased with this set of results. These set of results once again demonstrate resilience in our portfolio where we've generated near 30,000,000 of operational EBITDA, delivering also a dividend yield of 11.6%. NAV went down slightly quarter on quarter. Soon we will go through some of the drivers on that, but in essence driven by macro environment in GB. We end the year with 421, megawatts, operational in a portfolio of 1.25 gigawatts.

1:22 All of these results are supported by what we believe is very strong operational excellence, I. E, bringing on, bringing, on budget strong assets in the right locations to deliver very strong revenue. We have a very strong balance sheet. Again, Suni will go through some of financial amount with a high cash number and a low gearing number. And over the next six months, as Paulo will go through, you'll see a rapid growing operational capacity as we bring on on stream three of our largest assets. Quite uniquely, GORE STREET has a balanced portfolio across multiple markets. We were the first mover in the British market back in before the trust was actually up and running as a manager back in 2017.

2:10 First mover into the Irish market in 2019. I would describe us as a fast follower into the German market at the start of 2022. Same in the ERCOT, Texas market, start of 2022, and then California at the start of 2023. This diversified portfolio not only lowers volatility across our our our portfolio, as Paulo will go through in some detail, but also delivers an absolutely higher level of revenue if we'd stayed in GB on its own. Overall, a 45% increase in energized capacity, 5.5% increase in revenue. We're managing over 20 plus different revenue streams, so well diversified, not just from geography perspective, but also from a revenue perspective.

2:59 Our commercial colleagues are moving our assets in and out of different revenue opportunities as we see high value.

3:10 Total revenue then, over 41,000,000 for the financial year, an increase from last year, and again, an increase in operational EBITDA of near 29,000,000. Robust balance sheet, as I mentioned, over 16,000,000 in cash, debt headroom of near 60,000,000, and net cash then of 23. Gearing today of 6.5. It's our gearing at the end of the financial year at 6.5, going to 15% by the end of the year. Diversified portfolio delivering this £15 per megawatt, a multiple of what we would have achieved if we'd stayed as a GB only strategy. Driven in the main buyer international portfolio, we're near £20 of revenue for every megawatt we have for every hour in operation.

3:55 We have changed our dividend policy from a percentage of NAV to a seven p fixed. And this is reflective of we want to base our the dividend policy not on NAV, but on actual cash generators. And one where we are confident of covering this dividend given over the last four quarters, we've been generating a penny in in dividend cover. And looking forward, that was on the basis of 350 megawatts now going to seven fifty. So we think this is an appropriate way for our dividend policy going forward and still obviously acting offering a very high attractive level of dividend. Suneet?

4:44 Thank you, Alex. So, let me summarize the change in NAV for this year in this slide. So we issued 23,700,000 shares last year at NAV. So share issuance was neutral to NAV per share. In line with, last year's dividend target, we paid 7.5 p in last year that resulted in 7.4p reduction in NAV. The next three bars in blue show the impact of the NAV from the macroeconomic assumptions. As we will see in the next next page, revenue curve update resulted in a 7p reduction in NAV. 1 point pen 1.5p decrease from the is coming from the inflation assumption.

5:34 It is because of the update of the short term inflation assumptions, but we have not changed the long term inflation assumptions. We have also updated the overall discount rate by point 25% of increase to reflect higher market interest rate. The increase of the 10.1p in green includes the result of a portfolio cash generation of 6.3p based on the average three hundred three hundred eleven megawatt in operation. We had also the holding company cost of the 1.8p, so net cash generation was 4.5p.

6:20 In addition, within the 10.1p included is the, for example, the positive impact on discount rate from the construction progress and then also the other proactive management of the portfolio asset. For example, we are expecting a reduction in the asset management cost, And then, also, we have updated the, future, upgrade assumption for STONAY, PERIMU, and the based on the, updated, battery cell cost, for the repowering. So in summary, in this slide, this overall in this year resulted in a NAV drop from $11.15 to the $10.07, mostly driven by the macroeconomic assumptions.

7:12 Next slide, please. 4 okay. Thank you. This slide, is, as I indicated in the last slide, summarizing the revenue assumption changes. So, as a reminder, we always use a third party revenue curve to maintain the objectivity of our NAV process. Since March twenty three, third party market forecasts have started to reflect the current level of GB market revenue, so which have which resulted in the sync up decline in the forecast. So that is that is the main driver for the NAV drop.

8:01 In these forecasts, in near future, we don't expect a sync and recovery in market price, so it's gonna take a while. We believe it's gonna take until at least 2028 for the market level to recover and, reach the level of the market equilibrium. And then after that, we think it's gonna stay at the at that level. In Ireland, ERCOT, like a green one and then a yellow one, which we currently, we are seeing the, very strong revenue, but, we are assuming decline in revenue in this market. That is also reflected in our our NAV.

8:47 For example, in Norco market, we are taking into account, faster asset, buildup driven by the I r IRA, and that will be, resulting in the, that will expected to result in the declining revenue. In Ireland, we believe the, end of DS three program will have a syncant impact on revenue in 2026. In California, although they also gonna benefit from our IRA, we don't think the, there would be huge, price decline as we are expecting in ERCOT market.

9:34 It is because of the regulatory difficulties in entering market just by, responding to IRA support. So in summary, in this page, revenue

9:49 is assumed very conservatively, and this resulted in 7p reduction in NAV, largely driven by GB market GB forecast. Next page, please.

10:04 Thank you. This slide summarizes cash generation and dividend payments. So as you can see on in from the dotted yellow line on the graph, cash flow at fund level cash generation at the fund level last year was approximately 1p per quarter. This was generated by average of 311 megawatt of the asset in operation in the, 23 average. Paula will explain in later slides, but, once our, construction project currently under construction achieves COD, our operational asset will reach 750 megawatt in total.

10:55 So this is achievable. This construction up to 750 portfolio is achievable based on current debt availability and also maintaining overall fund leverage up to 15%. Once this project reaches COD, the fund cash flow will increase significantly compared to the 300 level megawatt level. Until then, assuming current market conditions, our cash flow level will be equivalent to 1p 1p dividend per quarter. Given the nature of storage asset, storage market, as Alex mentioned, we believe a dividend policy should be aligned to cash actual cash generation.

11:45 That is the more appropriate for this fund. So based on this policy understanding, we have decided to set dividend target for the first three quarters, for this year at 1p. But, taking that into account, cash generation from sources other than operating EBITDA, we are still continue to or we we are targeting the total dividend of 7p for the year, which means the last quarter, we will be expecting a 4p, dividend payment. I can go into this strategy more in detail in the next slide. But in summary, this dividend policy, we will be aligned with investor expectations, aligned with the portfolio cash flows, and it also we will have a clear route to have a full dividend cover.

12:43 Next page, please. So this is about the strategic cash allocation. So for a broader picture of cash flow, we we I I we we thought it would be beneficial for the investor to have the visibility on the cash generation and then a use of cash. Given the current state of the investment trust market, the ability to raise equity for growth is, limited. That's what we understood. And then in terms of the, debt, we have the opportunity to raise significantly more debt because there are many offers available, but we are generally cautious about the increase given the merchant nature of the project cash flows and also the current high level of the interest rates.

13:44 Next one, we expect to receive over $60,000,000 or up to $80,000,000 from the investment tax credit as US project become operational. So we are more closely monitoring the timing of this receipt for for us to make a proper plan for our cash flow for the fiscal year. As I mentioned in the previous slide, once the old construction projects become operational, we expect the increase in EBITDA. Lastly, these higher interest rates and also limited cap availability of capital is, requiring us to evaluate project profitability more carefully and also to assess which of the project which of the preconstruction project we will be eventually building.

14:43 So this will also consider we need also to take into account the asset portfolio diversification as well. That means, it may be appropriate to consider disposal of assets we are not building. So, flip side is if we dispose, some of the asset, the proceeds of that will also be important, of course, source of capital.

15:11 That's the summary of the cash source of capital on the left hand side. On the right hand side, these possible use of the cash flows, we are prioritizing the use of cash to pay dividends and then also to complete projects currently under constructions. But the subject to achieving this year's dividend target of 7p and then also project completions, we would consider funding the additional project project from the preconstruction asset to the for the complete for the construction. This concludes my section. Thank you. So next section, I believe, Alicia, please. Thank you.

16:03 Thank you, Sumi. So I'll give a a bit of a summary of GSF portfolio with an update on some of the construction assets. So, overall, the portfolio stands at 1.25 gigawatts of total power megawatt capacity, out of which at the moment, 421.4 megawatts is operational. The highlights include projects. So that's our Scottish asset, 49.9 megawatts that has been energized early this year and is now generating revenue, as well as Stony, a 79.9 megawatt English asset that also has moved successfully to the operational phase.

16:57 Very quickly looking at ENERGY, that's an asset that's in coming into a late phase of preenergization works, and we expect that those will commence in August this year, and the energization will complete in September. So a very imminent huge milestone for for that transmission connected asset as well as highlighting assets that we currently manage in construction in US. So in ERCOT in Texas, DOGFISH, it's a 75 megawatt one hour system. That asset is on track to ENERGY STREET February 2025.

17:42 We have secured all the critical high voltage components early before contracting the full EPC construction agreement, and that's, at the moment, allowing to maintain the program as well as, of course, looking at big rock asset in California that's progressing well, fully contracted in terms of construction construction packages, and looking to still bring the first battery lineups into into ENERGIZATION in December December this year. So progressing progressing against that milestone as expected. Next slide.

18:31 Moving on to market overview and and revenues. So just as a reminder or recap, we generally tend to think about battery revenues into three core buckets of of income streams, the classic grid balancing, ancillary services that are very well suited for fast acting assets such as batteries, peak shifting. So typically, a long term agreement such as capacity market agreement or resource adequacy agreements that allow system operators to secure generation capacity with visibility of multi multiple years to come. And last but not least, trading a deep market, generally, batteries tend to arbitrage in those markets and secure price differences driven by high renewable penetration and also differences in marginal costs.

19:32 In the generate the generation mix up of of the grids that we operate in, if we look at the breakdown of revenue streams that our assets in those respective operational markets stayed in. GB, the most varied market reflecting some of the the maturity of that of that grid despite the suppressed revenue levels that that we see in that market. The highlights definitely staying with Ireland and Texas. So fundamentals for those two markets remain strong in the last operational year, both driven relatively by high renewable build out in both of those markets. Texas is a is is a market that is highly driven by summer scarcity in generation where high temperatures drive demand from for ramping generation that is procured by system operator there and high revenue streams that can be captured in periods between July and August.

20:37 And Ireland, a market very focused on maintaining batteries in operation during high wind periods where,

20:48 generally, system operator procures ancillary services from from fast acting assets such as such as batteries. And lastly, Germany has seen a relative shift in the makeover of the of the revenue stack with more trading revenues coming into play for that for that market, especially looking at algorithmic intraday trading that our asset has been participating in that has made nearly half of the half of the stock in comparison to the previous year, which was frequency driven. Looking at the overall result of that diversified portfolio, a strong performance in terms of overall weighted average £15 per megawatt per hour achieved across those four grids.

21:45 Definitely, the the highest level has been achieved in ERCOT. So this this market is seeing high levels of load growth and and build out of various pockets of consumption that grows that requires demand increase on that network and also drives generating scarcity in summer when effectively the the the grid is battling the the the issues with relatively aging generation capacity in that in that in that grid, closely followed by the results in the Irish market at 20. This is a blended uncapped and capped regimes that we operate in with uncapped being more lucrative.

22:34 So assets in Ireland have generally focused on ancillary services, but there has been an uplift from periods where we have performed trading with those two regimes where optimization has suggested higher revenues in trading than our service services, we would move into that. Great Britain has seen a decline in in revenues against last fiscal year. This is really driven by increased capacity build out in in that market. So 1.4 gigawatts of batteries have been added in the past year to the grid against the backdrop of about one gigawatt of increased capacity procured by National Grid, which obviously causes a general tent for saturation and a few other policy changes that National Grid have introduced, including negative bidding in ancillary services have further driven the prices down.

23:36 In Germany, a stable performance in in that market, generally slightly lower than the previous year in terms of overall outcome, and that's driven by milder winter and higher gas storage capacity that was in in Europe. But the asset performed consistently and has also added now additional ancillary services to its portfolio of available revenues. So it has added AFRR into its into its mix of ancillary services and continues to shift between those three core revenue streams successfully.

24:23 To illustrate the point around diversification, to be able to quantify this, we have looked at long term trends across our portfolio. So at the top of the slide, you'll see how our assets performed in GB only. And if we look at the period from June end twenty twenty one to March end twenty twenty four and derive one standard deviation of revenues across that period. We'll see that it was around £5 per megawatt with average revenue revenue of 13.84 per megawatt per hour. If one was to take now the full diversified portfolio outcome, the standard deviation goes down to 2.4 per megawatt. So significantly reduces the variability of revenues across the the long term period, but also increases the overall result of average revenue capture to 15.32.

25:27 And with this, I will hand over to Paula. Thanks, Alicia. And now from an ESG perspective, GSF as an article a company has included in its annual results the portfolio using SFDR disclosures. It includes metrics covering climate indicators, social, and employee matters, as well as additional disclosures such as emissions of air pollutants. Over this reporting period, the operational portfolio avoided

25:57 over 15,000 tons of CO two equivalent and stored over 26 gigawatt hour worth of renewable electricity. This translates into a significant increase in both metrics actually when compared to the last reporting period, so March 2023. And this is partially due to an increase in the operational capacity, obviously, but also as well as a greater battery efficiency overall. As a broader ESG update, the company continues to be a member of the Fair Corporate Alliance. This is something we published last year, and reinforced its commitment to supporting responsible working conditions along mineral supply chains. Lastly, the fund continues to demonstrate its commitment to sustainability as it is constantly improving its portfolio performance, but it's also improving reporting and governance on this topic. Besides voluntarily aligning with TCFD for a couple of years now. This year marked the first year submission of PRI report for responsible investments.

26:50 More details of all those frameworks and memberships will be published in the annual GSF sustainability report, which will publish early, September.

26:59 Now, if we put together all that during the 2024 fiscal year, which was, covered by my colleagues, what are then the key milestones of which we're through in this, next fiscal year, up until March 2020

27:23 Firstly, it is the deliver of this over 330 megawatts across three sites in three different, focused on ENERGY, Big Rock, and Dogfish. The manager has good visibility of its construction timeline, and all three are coming online in the term. So Alicia covered this, but ENERGY will be commencing energization next month and is due completion in September. Dogfish, the team has been actively managing the long lead items under the construction schedule, so all really on track for energization in December. And Big Rock, it continues to progress well. And this is the largest project of the portfolio, and it'll be the first delivered in California, so a huge milestone. It is definitely the main focus, one of the main focus areas for 2025 fiscal year. Also on track for energization in December 2024.

28:15 How would we expect the GSF portfolio would look like then if we take a screenshot of March 2025?

28:21 Compared to the current capacity, this will mean a 45% increase, bringing the total ENERGY STREET STREET ENERGY STREET STREET At that point, GSF will have operational exposure in five grades, consolidating diversification strategy that we started back in 2019 and has been positively supporting the portfolio resilience. Alicia illustrated well why we've been very focused on the diversification for now over five years. As the additional capacity comes online, the bar charts that you can see here in the bar you can see the portfolio becoming more balanced throughout. On a megawatt basis, by March of next year, it is expected that 40% of the portfolio is in GB, while the scale represents circa 25%, Ireland circa 15%, and then Germany plus Texas at circa 20.

29:18 Now two of the three sites that I just mentioned in construction today are actually eligible to receive investment tax credit, the ITC. And both Alex and Sumi mentioned the ITC. So just shedding some light on the background of what does that mean. ITCs for batteries, they were introduced in late twenty twenty two as part of the inflation reduction app in The US. This directly benefits both Big Rock and Dogfish, like I just said. Asset owners, they can deduct part of renewable energy project costs from federal taxes or sell those credits for cash to third parties who can use them to offset their own tax liabilities. So for GSF's assets, it is expected that at least 30% of the qualified CapEx can be recovered as a tax credit. Projects generate tax credit when they are placed in service. So this is a bit of a technical term, but this is either when the property is ready for it to be, for ready for its assigned function.

30:10 So when the asset begins to actually export to the grid or when the, depreciation begins. So in conclusion, what we're saying is there's 60 to 80,000,000 cash inflow expected in 2025. This is all in dollars based on Big Rock and Dogfish assets. Aligned with what Sumi covered earlier in the presentation on the strategic cash flow allocation, ITC is indeed a material item of sources of cash for next year.

30:39 Now if we go beyond the over 750 megawatts that is prioritized and expected to be energized by March 2025, there's also a circa 500 megawatt of additional projects. This is an additional portfolio that is ready to build. As to me covered, we're now illustrating it with a sort of more data points, really. Besides ITC expected cash inflow and potential capital recycling, lead item prices, they've been materially decreasing in the past years. And as a function of EV supply and demand, you can also see that last year, especially, there were 14% reduction when compared to 2022 prices, and the trend for the first half of twenty twenty four continued. We would expect that projects contract in 2025, so projects out of this 500 megawatt bucket, would benefit from updated EPC prices.

31:28 Of all the many drivers that will impact the build out of this preconstruction portfolio, we expect a number of drivers to have an impact on the strategic planning, but definitely CapEx cost, capital availability, and cost of capital will be the building blocks for the 2025 build out plan.

31:47 Lastly, in terms of significant milestone expected for this year is the resource adequacy contract for Big Rock. That was also already mentioned to our earlier in this presentation. But what does this mean? It does refer to the state's electricity grid's ability to reliably meet the power demands of all consumers, preventing blackouts and the likes. So in other words, it is a capacity market equivalent as they both address the risks of, insufficient capacity. So just like capacity in Great Britain, RA is long term contract, so it ranges from ten to fifteen years, and it's all fixed term as well. So this is fixed revenue throughout contracted income. What is unique to California Grid is that this contract is expected to represent up to 40% of total revenue for Big Rock, while as in the GB, this is more around the 10% mark.

32:35 The manager is in advanced stages of securing an RA contract for Big Rock now as we speak, and this asset will be able to provide a 100 megawatt worth of RA deliverability. RA requires actually a minimum of four hour duration. So we would see a fixed term contract for a 100 megawatt in Big Rock. We expect to update the market imminently with the latest on RA prices. Alex, to you for conclusion marks. Thank you, Paula. And we're very happy with the set of results. What it shows is a construction portfolio coming on stream near doubling over the next six months with three material projects well in advance. I I took the opportunity to visit both Big Rock and Dogfish over the last four months and management has a high level of confidence of them being completed on time.

33:29 Those projects are completed on time with one of the most competitive price per megawatt fully installed. Energy energy storage is part of the renewables sector, so it's all about CapEx. And GORE STREET has spent a lot of time with our internal functions in procurement and construction, minimizing CapEx, minimizing the cost per megawatt fully installed. We've also spent a lot of time, again, with our internal functions delivering best in class revenue. If we look over our portfolios, my colleagues have gone through, if we've maintained a GB only portfolio, we would be a 30% of the level of revenue on a megawatt per hour basis. So our diversification across from GB, Ireland, Germany, Texas, and California has delivered a very set strong set of results for our investors.

34:15 Overall, we consistently deliver against the targets that we have set ourselves. We were the first mover in the British market, then Ireland, Germany, Texas, and California. And that ability to manage assets in construction, in operation across multiple jurisdictions is what allows us to deliver best in class revenue performance built on a balance sheet with a minimum amount of gearing. Thank you everybody and we're open. We'll take questions now. Perfect. Thanks very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the Q and A tab which is situated on the top right hand corner of your screen. But just while the company take a few moments to see the questions that have been submitted today, I'd like to remind you that the recording of this presentation along with a copy of the slides and the published Q and A can be accessed via your investor dashboard. As you can see, we have received a number of questions throughout today's presentation.

35:01 And Ben, at this point, if I could just hand over to you to check the Q and A, that'd be great. Then I'll pick up from you at the end. Of course. Thank you. We'll get through as many questions as we can today, and we'll provide written responses and post them on the website for those that we don't get through. So first question that we have is competitors have announced tolling agreements in the GB market. Has GORE STREET considered this, or are they going at it for a different approach? Let me take this question. Thank you, Ben. For sure, we have seen multiple contract types, not only in the British market, but but across multiple markets. And at the right price level, of course, we'd be interested. What we have been focusing on as the active manager of these assets is there's a wide range of contract types available. As Paula and Cindy went through, there's the ORE contract in in Texas, which delivers long term guaranteed revenue at a high level in GB. And in Ireland, we have capacity market contracts. Germany is now bringing in capacity market contracts.

36:00 So we we aim to be the active manager of these assets rather than give the assets over to another player to manage. That was that is what we believe allows us to deliver this best in class revenue. But, of course, when we look at opportunities in the market, if we see a good opportunity that delivers at least over our base case, we will definitely consider it. Thank you very much. The next question we've had in is around optimal duration of batteries in GB. So a one hour duration battery is still optimal in GB, and are you able to in considering retrofitting assets in this market? Second, I can take this one. So I think the answer is generally that yes. Still one hour system or around one hour system is what we consider the pragmatic approach to duration in Great Britain.

36:51 If we track again revenues across the last twelve or perhaps even slightly longer period, there's a very minimum uplift and minimum evidence of sustained uplift from to our systems. And, sale prices and CapEx has been going down, but it's, expected to continue to go down. Therefore, we expect that farther decreases of CapEx are expected, in the in the near and midterm future. Therefore, we consider it prudent to to assess the situation and and really focus on trying to see an uplift for to our system that currently is not a sustained signal from the market. Thank you. The next are just a few clarification points. First would be, could you be explaining what liquidated damages are?

37:45 So maybe I'll start with the fundamentals. So assets in our portfolio generally benefit from wrapped engineering procurement construction contracts that offer a really robust set of delay liquidated damages that allow us to offset the risk of any contractor attributable delays. And we have successfully, in the past, secured those those liquidated damages for our portfolio when when our assets suffered delays caused by battery and integrator contractors. And in this reporting period, we also expect to see a contribution from from from those. These are confidential arrangements that we we have with our contractors.

38:34 So we're not in a position to disclose those, but, we can talk about the fundamental contribution and the security that those, mechanism bring to the portfolio. Thank you. And one more would be, the r you said the RA contract requires four hours, but Big Rock is only two hours. Could you please explain? So as Paula mentioned, resource adequacy contract in in California for our Big Rock asset is really contracted at 100 megawatt level. So this is what our asset has secured as deliverability attribute to its grid connection. So and a a battery that is 400 megawatt hours, so actually a little bit more than that, is comfortably able to secure for our duration at that level of contracted power capacity.

39:29 Thank you. We've had a numb a number of questions on this, so I'll put it into one. But do you see the labor government is providing support to green trusts like GSF? I'll take this. I don't know whether we see labor government providing support to green trusts in specifics, but what we do see is a difference in, emphasis, between, the labor government and the previous administration. Already, goals of the labor government have, laid out, we believe will add incremental revenue to our energy storage systems in GB. And their talk around grid reinforcement and the need for grid reinforcement goes to that that theme. What I would say is that the biggest component of revenue for an energy storage asset is the correlation with how much renewables is on the grid that it operates.

40:22 And one of the first moves by the labor government in looking to relax planning for onshore wind will lead 100 it'll lead definitely to more onshore wind being built and therefore growth in renewables. That growth in renewables supports higher revenues for energy storage. So we are encouraged by what we've seen so far in terms of the labor government, in terms of their initial policies. We expect more. And, actually, as a manager, we are engaged to put forward our viewpoint to them. Thank you. Is the RA or resource adequacy contract in California the same as the capacity market contracts we see in GB? Let let me take that. Yeah. Go on. Okay. So there are a couple of differences. One is as someone mentioned, like, a four hour duration is necessary.

41:16 But in GB, you have the opportunity to bid based on, for example, one hour asset. That's number one. And then also the contract is not the okay. Or the through auctions public auctions, but it's a bilateral negotiation with the suppliers. So there is no clear market price available. It's all negotiated bilateral and not necessarily disclosed to the third parties. Third, there are, I would say, more stringent technical requirements and their operational requirements exist for the California Kaiso RA contract. So we are ready to provide that as well. I believe that covers key ones, but I thought oh, and then also lastly, it's not about the market system itself, but the quantum of the revenue available within the total revenue available to the project is singled me more. For example, GB, we are only expecting, like, roughly 10% of revenue coming from capacity market in Kaizo project. For this project, we are expecting 40% coming from the this long term contract, RA contract.

42:36 Yeah. If I can just add in as well, what this does to the overall portfolio is adds in, as Sumi mentioned there, a large chunk of contracted revenue. So Big Rock is obviously a very big and important asset for us. It's it will contract to a large percentage of its capacity under the RA, and therefore, a portfolio base, we'll move to a higher percentage of contractual revenue. Thank you very much. I believe that covers most of the theme of the questions, and we'll respond. We'll post the answers written for any of the ones we've missed. Thank you very much. Perfect. Thank you all for updating investors today. Could I please ask investors not to close the session as you now be automatically redirected to provide your feedback in order the management team can better understand your views and expectations?

43:22 This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of GORE STREET ENERGY STORAGE FUND PLC, we'd like to thank you for attending today's presentation, and good morning to you all.