News
Appointment of Non-Executive Director and Collaboration Agreement
Alkane Energy plc (AIM: ALK), the profitable alternative energy company that owns and operates power generation plants using coal mine methane as fuel, today announces an update on trading ahead of the year end for the period to 31 December 2009.
Trading results for the first 11 months of the year have been very positive with
revenue increasing by 22% compared to the same period in 2008. This increase
reflects the contribution of additional sites at Bilsthorpe and Shirebrook
commissioned in H2 2009, as well as an increase in power prices at existing sites. As
a result, Alkane is on track to produce an estimated full year electricity output of
95GWh (2008: 91GWh). Overall, the Board expects that its results for the year to 31
December 2009 will be broadly in line with market expectations.
Furthermore, the Group continues to work on a number of new projects with three
additional sites, at Florence in Staffordshire, Kings Mill in Nottinghamshire, and
Newmarket in West Yorkshire, expected to start production in 2010. In addition, our
tolling contract with GDF Suez, announced on 2 November 2009, assigns 7MW of
excess capacity to GDF Suez and will generate revenues for Alkane of approximately
£0.3 million per annum.
As the Board highlighted at the time of its interim results, electricity pricing remains
extremely volatile. The Group's policy of forward selling power output is essential to
allow us to plan for a sustained development and continue expansion in our total
generating capacity which offsets lower prices and addresses business planning
issues around price volatility. Overall, we expect electricity price volatility to continue
into 2010, with forward prices currently forecast to be lower than those contracted in
2009. However the market is seeing more favourable forward prices for 2011 and
2012.
Appointment of Non-Executive
Alkane is pleased to announce the appointment of Joseph Darby as a Non-Executive
Director of the Company, effective from 1 January 2010.
Mr Darby, 61, has been involved in the energy sector throughout his career. He spent
eight years with Shell Petroleum before becoming Chief Executive of Thomson North
Sea Ltd. He then performed a number of senior roles with LASMO plc and was Chief
Executive Officer from 1993 to 2001.
Mr Darby is currently a Non-Executive Director at Premier Oil plc and Nordaq Energy
plc, and is a Director at Mallards Reach (Oakley) Management Company and
Sandleigh Limited. He was Non-Executive Chairman of Mowlem plc (2005 - 2006)
and Faroe Petroleum plc (2003 - 2007), and has also previously held Non-Executive
roles at BNFL plc, Centurion Energy Inc, Sellafield Ltd and Carillion JM Ltd.
John Lander, Chairman of Alkane, welcomed Joe to the Board and said:
"Joe Darby has a very successful track record in the energy sector. We are
delighted that he is joining us and look forward to working with him and
benefitting from his wide experience both in the energy sector and in nonexecutive
roles.”
Save for the disclosures above, there are no further disclosures to be made in
accordance with Rule 17 and Schedule 2(g) of the AIM Rules.
Collaboration Agreement with TEG Group PLC
Alkane is also pleased to announce today a collaboration agreement with TEG Group
PLC (“TEG”), an AIM listed green technology company, which develops and operates
organic compositing and energy plants. As partners, Alkane and TEG will jointly bid
for a range of anaerobic digestion facilities where TEG will provide waste contract
and management services and Alkane will provide gas to power capabilities.
The intention of the agreement is that both parties will fund their own share of capital
investment with profits generated being shared in proportion to funding. Alkane will
provide the gas handling, gas engines and grid connections and TEG will be
responsible for the construction and operation of the anaerobic digesters and waste
handling.
Alkane will be in a position to deploy current engine and gas handling skills to this
biogas source, where power pricing will benefit from renewable energy incentives (i.e.
Renewable Obligation Certificates: ROCs). The operational footprint is likely to be
similar in size to Alkane’s existing facilities and also deploy remotely managed, base
load running output.
Alkane and TEG have already entered joint bids on the current round of Welsh
Assembly tenders in the biogas sector. There are also a number of other sites where
planning and permitting is being progressed with the aim of securing funds and
moving into the construction phase as soon as practical after the permitting process
is complete.
Neil O’Brien, CEO of Alkane, commented on the collaboration agreement with TEG:
“I am delighted with this ground breaking collaboration agreement. This area
of the waste to energy sector receives significant support through ROCs and
is expected to be one of the high growth renewable sectors over the coming
years. This agreement brings together the core skills of Alkane with those of
TEG, increasing the available opportunities and reducing the operational and
development risk for both parties.”
Enquiries
Alkane Energy plc
Neil O’Brien, CEO
Steve Goalby, Finance Director
www.alkane.co.uk
Tel: 01623 827927
Hudson Sandler
Nick Lyon / Kate Hough
Tel: 020 7796 4133
Altium
Corporate Finance - Adrian Reed
Corporate Broking - Chloe Ponsonby
Tel: 0845 505 4343
Tel: 020 7484 4079
Page last updated: 10 March 2010
