VEN2 Ventus 2 Vct Plc

the landfill gas. The Manager is continuing to work with its technical 
consultants to improve the operational performance, however conditions remain 
challenging and the increased costs of operating the generating equipment as a 
result of the gas quality means that the portfolio continues to perform below 
budget. The Manager is investigating and trialling a number of measures in an 
effort to improve performance, however progress since the date of the last 
annual report has been limited. 
The ability of Redimo LFG Limited to trade out of its current position remains 
contingent on stabilising the operational performance and on an improvement in 
the level of future wholesale energy prices. Currently, Redimo LFG Limited is in 
breach of certain covenants under its banking facilities, however it retains the 
support of its lenders. The Company determined in December 2009 that it was 
prudent to fully write down the value of its investment in Redimo LFG Limited. 
This remains the position even though Redimo LFG Limited is still actively 
trading. 
PBM Power Limited 
 
PBM Power Limited is a company operating a waste wood biomass electricity 
generating plant in Lincolnshire. 
 
Following the acquisition of the assets of Ventus 3 VCT plc, the Company owns 
25% of the share capital in PBM Power Limited for which a total consideration of 
GBP574,000 has been paid. 
 
The plant became operational in April 2009, which was approximately five months 
later than scheduled as a result of delays in provision of the grid connection 
by the network operator. There have been a number of operational issues with the 
plant since it was first commissioned which have progressively been resolved by 
the principal contractor under warranty. These have taken significantly longer 
than first expected and there have been further plant shutdowns over the summer 
period in order to resolve the operational issues once and for all. The plant 
has only recently been put back in to full operation therefore as at the date of 
this report there has only been a limited period of consistent generation. 
 
The intention of PBM Power Limited is to run the plant at design output over the 
remainder of 2010 to ensure that the technical issues that have arisen in the 
past have been fully resolved by the latest works. 
 
Together with the delayed start, the additional shutdowns have led to 
significantly lower than expected generation volumes compared to the original 
year one and two operating budget. 
 
PBM Power Limited is continuing in negotiations with its lending bank regarding 
the rescheduling of the repayments of its long term loan facilities. 
 
In view of the need for the generating plant to demonstrate a consistent period 
of stable operation, the investment has not been revalued using a discounted 
cash flow methodology.  The fair value of this investment is not considered to 
be materially different to the historic cost of investment. In consideration of 
the discounted future expected cash flows from this investment, the value at 
which the investment is held is not considered to be impaired. 
 
Spurlens Rig Wind Limited 
 
Spurlens Rig Wind Limited is a company developing a six turbine wind farm in the 
Borders region of Scotland. Following the acquisition of the assets of Ventus 3 
VCT plc, the Company owns 60% of the share capital in Spurlens Rig Wind Limited 
for which a total consideration of GBP198,000 has been paid. 
 
The planning application is expected to be submitted before the end of October 
2010 and a decision is anticipated within twelve months. The Company has secured 
the rights to provide the equity and mezzanine debt finance required to build 
the wind farm should planning permission be granted. 
 
 
Olgrinmore Limited 
 
Olgrinmore Limited is a company developing a two turbine wind farm in Caithness, 
Scotland.  Following the acquisition of the assets of Ventus 3 VCT plc, the 
Company owns 17.6% of the share capital in Olgrinmore Limited for which a total 
consideration of GBP68,400 has been paid. 
 
A planning application was submitted in January 2009 but was refused by the 
local planning department under delegated authority in June 2010. The company 
has now submitted an appeal which is expected to be determined before the end of 
the calendar year. 
 
The Company has secured the rights to provide the equity and mezzanine debt 
finance required to build the wind farm should planning permission be granted on 
appeal. 
 
Redeven Energy Limited 
 
The Company holds an investment in Redeven Energy Limited, made by way of a 
shareholder loan, to fund the development of three wind farm sites in East 
Anglia. The Company made a nominal equity investment which was matched by Ventus 
3 VCT plc. Following the acquisition of the assets of Ventus 3 VCT plc, the 
Company owns 60% of the share capital in Redeven Energy Limited and is providing 
total shareholder loans of GBP534,000, of which GBP60,000 was advanced in May 
2010. 
 
Planning consent has been awarded on the first two sites comprising a total of 
seven turbines. Procurement work has started and negotiations are taking place 
with turbine suppliers, lenders and other key contract counterparties. The 
planning application for the third site, which would add a further two wind 
turbines to the portfolio, is expected to be submitted later this year once the 
required planning reports and public consultations have been completed. 
 
The Company has secured the rights to provide the equity and mezzanine debt 
finance required to build the wind farms for the sites when planning permissions 
are obtained. 
 
 
Osspower Limited 
 
Osspower Limited is a company developing a group of four small scale 
hydro-electric generating assets in Scotland. . The Company made an equity 
investment of GBP150,000 which was matched by Ventus 3 VCT plc. Following the 
acquisition of the assets of Ventus 3 VCT plc, the Company owns 50% of the share 
capital in Osspower Limited and provides shareholder loans of GBP55,000.  The 
Company has also negotiated the rights to arrange the finance to build the 
hydro-electric schemes. 
 
The planning applications for the four hydro-electric schemes were submitted to 
the Scottish Government Consents Unit in July 2009 and full planning permission 
was granted in April 2010. The Investment Manager is currently working with the 
other shareholders of Osspower Limited to put in place the finance facilities 
and contracts required to take the consented sites forward into construction and 
long term operation. 
 
The Small Hydro Company Limited 
 
The Small Hydro Company Limited is a company developing a number of small scale 
hydro-electric generating assets in England. The Company made an equity 
investment of GBP57,500 which was matched by Ventus 3 VCT plc. Following the 
acquisition of the assets of Ventus 3 VCT plc, the Company owns 22.5% of the 
share capital in The Small Hydro Company Limited and provides shareholder loans 
amounting to GBP384,000. 
 
The Small Hydro Company Limited submitted planning applications for its first 
five sites in July 2009 and is continuing to work with the relevant authorities 
to manage the applications through the planning process and to obtain the 
necessary environmental licences.  One of the planning applications was 
initially refused and a resubmission has been made.  Three sites have been 
consented and the other application is yet to be determined. 
 
 
Renewable Power Systems (Dargan Road) Limited 
 
Renewable Power Systems (Dargan Road) Limited is a company operating a landfill 
gas generating scheme on Belfast City Council's North Foreshore waste management 
site. 
 
The Company made an equity investment of GBP390,000 which was matched by Ventus 
3 VCT plc. Following the acquisition of the assets of Ventus 3 VCT plc, the 
Company owns 50% of the share capital in Renewable Power Systems (Dargan Road) 
Limited and provides a shareholder loan facility of GBP1.12 million. Renewable 
Power Systems (Dargan Road) Limited has been operational for a suitable period 
andin accordance with the Company's investment valuation policy, the investment 
has been revalued to GBP1.97 million. 
 
The project manager and developer is Renewable Power Systems Limited, an 
experienced UK landfill gas generation specialist. Renewable Power Systems 
Limited owns 50% of Renewable Power Systems (Dargan Road) Limited and provides 
long term operational support services. 
 
Construction on the site began in 2008 and the plant became operational on 
schedule and to budget in August 2009. Operating performance in the first 
contract year at the project has been in accordance with budget and no 
significant operational issues have occurred. 
 
The Company received mezzanine loan interest of GBP36,000 in April 2010 against 
income accrued in the current and prior periods. In May 2010, the Company 
received a dividend of GBP150,000. The Company received mezzanine loan interest 
of GBP73,000in September 2010 against income accrued in the half year together 
with a further dividend of GBP100,000. 
 
Sandsfield Heat & Power Limited 
 
Sandsfield Heat & Power Limited is a company developing a biomass generating 
scheme in North Yorkshire. The scheme uses waste wood as a fuel to generate 
electricity, via a conventional steam turbine, for export to the grid. 
 
The project manager and developer is Bioflame Limited, a company specialising in 
energy from waste systems. Bioflame Limited own 30% of Sandsfield Heat & Power 
Limited. 
 
Following the acquisition of the assets of Ventus 3 VCT plc, the Company owns 
44.9% of the share capital in Sandsfield Heat & Power Limited acquired for total 
consideration of GBP1.8 million and provides a mezzanine loan facility of GBP1.0 
million. 
 
Construction on the site commenced in early 2009 and the plant entered operation 
in July 2010 in line with the construction schedule. The plant is currently 
undergoing performance optimisation testing in accordance with the post 
commissioning testing regime and satisfactory full output has been achieved. 
 

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