5th Feb 2014 14:48
LONDON (Alliance News) - Alkane Energy PLC Wednesday said it has acquired the 10 megawatt Wheldale, West Yorkshire power response facilities from SSE PLC for GBP1.5 million.
The clean technology gas-to-power company said the initial consideration for the acquisition is GBP1.1 million in cash, with a GBP400,000 deferred cash payment to be paid on October 31.
The company said the deal gives it a 10 megawatt site with a current installed engine capacity of 7.5 megawatts, bringing its total power response capacity to 37.5 megawatts and total overall capacity to 90 megawatts.
Alkane said that in order to fund the acquisition, it has increased its banking facilities with Lloyds Bank PLC by GBP1 million, with the balance being covered through group cashflow.
Power response facilities add necessary energy to the UK national grid in times of crisis or peak load running.
Alkane Energy shares were up 5.7% to 46.50 pence Wednesday, while SSE shares were up 0.8% to 1,340.12 pence.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
SSEAlkemy Capital.