Update on Projects

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 £47.8m 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:

REACT Energy plc	[phone]
Gerry Madden, CEO
Shore Capital - Nomad & Broker	[phone]
Pascal Keane / Anita Ghanekar
Abchurch Communications - Financial PR	[phone]
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

 

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