TIDMKED
RNS Number : 0425M
Kedco PLC
12 September 2012
Press release 12 September 2012
Kedco plc
("Kedco" or the "Company")
Kedco's Newry Biomass Plant hits operational milestone and
commences exporting of electricity
Kedco plc, (AIM:KED) the renewable energy group focusing on the
production of clean energy in the UK and Ireland, announces that
the Company's plant in Newry, Northern Ireland, which will produce
a total of 4MW, has commenced the exportation of power to the grid
from its biomass electricity and heat generation plant. This marks
the Company's transition to an operator of renewable energy assets
from a pure development company.
The electricty generated by the Newry Biomass Plant is being
sold to Bord Gais Eireann under a Power Purchase Agreement. The
Company now intends to move towards the completion of the next 2MW
phase of the project, which is expected to come online in Q4 2013.
The civil and on-site works for this additional 2MW have already
been completed and a deposit has been paid to secure the expansion
of the grid infrastructure for the project.
Once fully operational, the plant will employ up to 12 people
and be able to provide clean electricity to over 7,000 homes.
The Company's plant at Newry is the first in its pipeline to
commence exporting power to the electricity grid. Kedco's other key
asset is the 12MW Enfield Biomass Project located in Enfield,
London. This project has full planning and permits to convert
60,000 tonnes per annum of waste wood and has entered into advanced
discussions on an offer to connect to the national grid. The
Company has already entered into a 20-year lease in relation to the
site. The Company also has various options available for feedstock
sourced locally for the plant.
The Directors believe that this project in Enfield is one of the
most advanced biomass development projects located in the London
region. The Company intends to progress the project towards
financial close and commencement of construction.
In line with this aim, the Company has already conducted
preliminary discussions with debt and equity partners and these are
expected to progress over the course of the next few months. A
further update will be provided as appropriate.
Gerry Madden, CEO of Kedco, commented:
"This step marks the Company's move from being solely a clean
energy project developer to a clean energy producer. The Board is
delighted with the progress made at the site, and is pleased to be
generating revenue from the plant, as this significant step in the
Company's development will provide Kedco with good visibility of
earnings. Biomass electricity and heat producing technologies are
among the most incentivised in the UK, and this support further
underpins Kedco's business model.
The Board would like to thank its key commercial partners, RBS
Ulster Bank, Stobart Group, Clarke Energy/GE Jenbacher and
Zeropoint,for their work completed on the project to date. The
Company looks forward to completing the commissioning of the
additional 2MW of its Newry Biomass project."
Eddie Cullen, Head of Corporate & Institutional Banking,
Ulster Bank said:
"This operational milestone is an important one for Kedco. Our
support for the project has enabled us to clearly demonstrate our
continued commitment to customers in the renewables market on the
island of Ireland."
Haydn Rees, Managing Director of Clarke Energy Limited,
commented:
"We congratulate Kedco on their progress to date with the Newry
project and we look forward to continuing our support of Kedco on
their future projects."
- Ends -
For further information:
+353 (0)21 483
Kedco plc 9104
Gerry Madden, Interim CEO and Finance Director
+44 (0)20 7936
Deloitte Corporate Finance - Nomad 3000
Jonathan Hinton / David Smith
+44 (0)20 7638
SVS Securities plc - Broker 5600
Ian Callaway / Alex Mattey
+44 (0)20 7398
Abchurch Communications 7714
Ashleigh Lezard / Shabnam Bashir
Further information on Kedco plc
Kedco plc's business strategy is to identify, develop, build,
own and operate renewable energy electricity and heat generation
plants in the UK and Ireland. These plants will contribute to the
need for sustainable energy from renewable sources.
The Company possesses significant knowledge of renewable energy
markets, clean technologies, biomass and waste fuel sources,
project development, project finance and project delivery.
Kedco has a strong pipeline of additional plants at varying
stages of development, including a site in North London with full
Planning and Environmental Permission for the conversion of 60,000
tonnes of waste timber per annum into up to 12MW of electricity and
heat. The Company is also currently engaged in the planning process
for proposed biomass projects in Rutland, East Anglia and Clay
Cross, Derbyshire.
Kedco was admitted to trading on AIM, a market operated by the
London Stock Exchange, in October 2008 (AIM:KED).
Further information to Newry Biomass project
Kedco plc has invested GBP6 million in the Newry Biomass Plant
to facilitate bringing the project into operation. The plant has
been developed as a joint venture with the Company's largest
shareholder, Farmer Business Developments plc. The company retains
a 50% equity interest in the project as well as a 92% interest in
the economic return from the project.
The balance of the funding is being provided by Ulster Bank
Group, a subsidiary of RBS. Financial close for up to GBP9.44
million of debt facilities finance was reached in December 2012
with Ulster Bank.
www.kedco.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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