TIDMKED
RNS Number : 1809A
Kedco PLC
18 March 2013
Press release 18 March 2013
Kedco plc
("Kedco" or the "Company")
Update on Enfield Biomass CHP project
Kedco plc, (AIM:KED) the renewable energy developer and operator
focusing on the production of clean energy in the UK and Ireland,
is pleased to announce significant progress in relation to its 12MW
Enfield Biomass combined heat and power ("CHP") project (the
"Enfield Project") located in North London. In addition, the
Company announces the appointment of N+1 Singer as equity adviser
to the Company in respect of the Enfield Project and the receipt of
a number of offers relating to its financing. The Enfield Project,
which has 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, remains on track to reach financial
close and start construction in the third quarter of 2013.
1. Enfield project finance
The Company has received a number of proposals regarding the
provision of financing for the Enfield Project. The proposals are
on a variety of terms and encompass funding the Enfield Project on
either a combined debt and equity or pure equity basis.
In order to assist the Company in progressing the various
proposals, Kedco is pleased to announce that it has appointed N+1
Singer as its equity adviser in relation to the Enfield Project.
N+1 Singer is one of the top five Institutional Broking and
Corporate Advisory teams in the UK with over 120 listed corporate
clients. N+1 Singer's specialist Renewable Energy and Clean
Technology team has advised on the raising of equity financing for
a number of other renewable energy projects, notably the Helius
Energy CoRDe biomass plant project.
This appointment is in line with Kedco's stated strategy of
raising construction finance at the project special purpose vehicle
("SPV") level rather than through the quoted holding company, Kedco
plc. The Company currently owns 100% of the share capital of
Enfield Biomass Limited, the SPV for the Enfield Project.
The Company is also pleased to have received outline terms from
a major UK bank for the provision of up to 70% of the total project
cost. The terms provided are of an indicative nature only and are
non-binding. The terms however are in line with management
expectations. The Company is working with the bank to move towards
a fully credit-approved term sheet and will provide a further
update in this respect as appropriate.
2. Feedstock
Heads of terms have been received from two large feedstock
suppliers for the provision of 100% of the feedstock required by
the Enfield Project. The terms are in the process of being
finalised and formal contracts are currently being drafted.
3. Power Purchase Agreement ("PPA")
Headline terms have also been received from two major energy
suppliers to purchase 100% of the electrical output from the
Enfield Project over a long-term basis. A decision on the preferred
PPA offtaker will be made by the Board shortly in consultation with
the potential debt and equity funders.
4. Heat offtake agreement
Detailed discussions have taken place with a large multinational
corporate to purchase 100% of the heat generated by the Enfield
Project. Similar to the electricity offtake agreement, it is
anticipated that this will be a long-term contract and heads of
terms are currently being discussed.
The Company is aware of the Lee Valley Heat Network which is
being developed by three London borough councils. The aim of the
network is to provide a new city-scale decentralised energy network
to capture affordable low carbon heat (hot water and steam) from
Energy from Waste facilities and dedicated CHP plants.
5. Grid connection agreement
The Company has signed a grid connection agreement with UK Power
Networks which will enable the project to connect into an existing
electrical substation located in the Enfield area. A deposit has
been paid by the Company to secure the grid connection offer and
reserve the grid capacity. This represents another key milestone
for the Enfield Project and eradicates any uncertainty regarding
the ability to export to the national grid, the associated costs
and the timing of delivery of the connection.
6. Biomass CHP solution provider
A final decision on the preferred provider of the biomass CHP
solution will be made in consultation with the Enfield Project debt
and equity funding partners. The intention is to appoint an owners
engineer acting on behalf of the Enfield Project to assist with
this process within the next month.
7. Plant output
The Company is also in discussions with Enfield Council
regarding a proposed increase in the annual waste wood conversion
capacity of the Enfield Project and a change in the configuration
of plant building to accommodate such increase. Further updates
will be provided in due course.
Gerry Madden, CEO of Kedco, commented: "The Company has a clear
plan in place for the Enfield Biomass CHP project with the key
objective being to reach financial close by Q3 2013. Given the
flagship nature of the Project, which is located in the London area
within the M25, the Company is pleased to have received numerous
enquiries from various parties interested in participating in the
Project, and we look forward to finalising this shortly.
"We are delighted to have appointed N+1 Singer as part of our
project team and look forward to working with them over the coming
months to secure the equity investment required for the Enfield
Project and maximising the return to shareholders. Their experience
and expertise in raising equity for similar projects will be of
great assistance to the Company at this stage in its
development.
"The Board is encouraged by the strong levels of interest shown
by all of the various potential feedstock suppliers, electricity
and heat off-takers in the Enfield Project and the project team is
working to conclude all contractual arrangements in the near
future."
- Ends -
For further information:
+353 (0)21 483
Kedco plc 9104
Gerry Madden, CEO
+44 (0)20 7936
Deloitte Corporate Finance - Nomad 3000
David Smith / Byron Griffin
+44 (207) 496
N+1 Singer 3000
Andrew Craig / Ben Wright
+44 (0)20 7638
SVS Securities plc - Broker 5600
Ian Callaway / Alex Mattey
+44 (0)20 7398
Abchurch Communications 7707
Janine Brewis/Joanne Shears/ Shabnam Bashir
About 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, fuel sources, project development,
project finance and project delivery.
Kedco has a strong pipeline of renewable energy projects at
varying stages of operation and development, including a 4MW plant
in Newry in Northern Ireland whose initial phase has commenced
operation and 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 has a construction ready 800kW Wind project in County Cork
in Ireland and is currently engaged in the planning process for
proposed renewable energy projects in Rutland, East Anglia and Clay
Cross, Derbyshire and for three Wind projects and two Solar
projects on the island of Ireland.
Kedco was admitted to trading on AIM, a market operated by the
London Stock Exchange, in October 2008 (AIM:KED).
www.kedco.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBRGDXCSBBGXU
Eqtec (LSE:EQT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Eqtec (LSE:EQT)
Historical Stock Chart
From Jul 2023 to Jul 2024
