React Energy PLC Update on Projects (1773W)
December 23 2013 - 3:00AM
UK Regulatory
TIDMREAC
RNS Number : 1773W
React Energy PLC
23 December 2013
Press release 23 December 2013
REACT Energy plc (formerly known as Kedco plc)
("REACT Energy" or the "Company")
Update on 12MW Enfield Biomass CHP, Plymouth Biomass CHP and
Altilow wind projects
REACT Energy plc, (AIM:REAC) the renewable energy developer and
operator focusing on the production of clean energy in the UK and
Ireland, is pleased to provide an update on a number of projects in
its portfolio, including the 12MW Enfield Biomass combined heat and
power ("CHP") project (the "Enfield Project") located in North
London.
12MW Enfield Biomass CHP Project
The Enfield Project 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.
The Company continues to make good progress towards reaching
financial close and starting construction on the project. Progress
has been made in the last few months across a number of key aspects
of the project. In particular, the Company recently worked with the
Foresight Group to acquire the site that the project is located on
as well as signing a new lease for the project. This transaction
involved a fund managed by Foresight Group acquiring the site from
a third party. In conjunction with this, Enfield Biomass Limited (a
subsidiary of the group) has signed a revised lease agreement for
the site. While this transaction slightly delayed financial close
for the overall construction of the project it means that Foresight
Group, as the main financing partner, now has a direct financial
interest in the project.
Negotiations with MWH Global Inc regarding the EPC contract are
progressing and moving towards a conclusion. The company expects to
have a final form of contract ready for signing shortly. Heads of
terms with feedstock suppliers have also been signed with
negotiations continuing with a number of other potential
suppliers.
Other project updates
Altilow single wind turbine project
The Altilow project is a 500kw single wind turbine located in
Co. Donegal, Ireland. The project received planning permission in
July 2012 and a met mast was installed at the site in December
2012. The Company is pleased to confirm that the last key permit
has been secured with a grid connection offer having being received
from ESB Networks in the last two weeks. In addition to this, the
wind measurement campaign has also been completed with enough data
collected from the site to commission a bankable wind report. The
Company intends to commence discussions with banks in the New Year
for the provision of construction financing for this project. The
project is expected to start construction during 2014.
Moneygorm single wind turbine project
The Company has also recently been informed that a grid
connection offer for the 500kw Moneygorm single wind turbine
project will be issued by the end of January 2014. Once this is
received all of the key permits for the project will be in place.
The wind measurement campaign is close to completion and will be
finalised by the end of March 2014. Following this, the project
will also be in a position to start construction and the intention
is to combine the financing with that of the Altilow single
turbine.
Plymouth biomass CHP
The Company has now signed a legal option and agreement for
lease with the London & Devonshire Trust ("LDT") regarding a
site for a 10MW biomass CHP project in Plymouth. This agreement
provides the Company with a three year option period to secure
planning permission for the project and any other necessary consent
required to start construction. As previously announced, a grid
connection agreement has already been secured for the project. The
Company is aiming for the project to be ready for construction by
the end of 2014.
52.5MW Co-development agreement
The planning application for the 12.5MW Altilow wind project has
now been completed and will be submitted to the planning
authorities. A decision is expected to be made during H1-2014.
Further survey work is being conducted on the 10MW Boleybaun
wind project, which has slightly delayed the planning application.
This work is expected to be completed early in the New Year
following which the planning application will be submitted.
Development works on the other two projects, which form part of
the co-development agreement, are continuing.
Gerry Madden, Chief Executive Officer of REACT Energy,
commented: "We are delighted to have concluded a deal with
Foresight Group for the purchase of the site of the Enfield
Project. While this has slightly delayed financial close, both the
Company and Foresight Group can now fully focus on concluding the
various project construction contracts and due diligence as soon as
possible.
We also welcome recent positive news in the UK biomass sector,
in particular the recent announcement by the Green Investment Bank
and Foresight Group of the financial close on a 10.3MW GBP47.8m
biomass plant in Birmingham using MWH Global as the EPC contractor
and Nexterra as the preferred technology provider.
Progress across the rest of the portfolio continues to be made
with 2014 set to be a busy and exciting year for the Company.
In addition to this we are also continuing to assess various
bolt on acquisition opportunities and we will update shareholders
in due course should any of these move forward."
- Ends -
For further information:
+353 (0)21 483
REACT Energy plc 9104
Gerry Madden, CEO
+44 (0)20 7408
Shore Capital - Nomad & Broker 4090
Pascal Keane / Anita Ghanekar
+44 (0)20 7398
Abchurch Communications - Financial PR 7707
Janine Brewis / Joanne Shears / Shabnam
Bashir
About REACT Energy plc
REACT Energy plc (formerly Kedco) is a renewable energy
portfolio developer and operator whose business strategy is to
identify, develop, build, own and operate renewable energy
electricity and heat generation plants in the UK and Ireland. Its
core focus is on Renewable Energy And Clean Technology "REACT"
The Group possesses significant knowledge of renewable energy
markets, clean technologies, fuel sources, project development,
project finance and project delivery.
REACT is listed on the AIM, market of the London Stock Exchange,
(AIM: REAC) formerly (AIM: KED).
www.reactenergyplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCLLFLVFALLFIV
Eqtec (LSE:EQT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Eqtec (LSE:EQT)
Historical Stock Chart
From Jul 2023 to Jul 2024