6th Jul 2015 08:08
LONDON (Alliance News) - Alkane Energy PLC Monday said revenue and production in the first half of the year significantly rose and said it has begun building its 28th power plant, which will begin producing electricity later this year.
The UK independent gas-to-power producer said revenue from its power generation business was GBP8.5 million in the first-half ended June 30, up from GBP5.4 million in the first-half of the last financial year.
Electricity output in the first-half came in at 106 gigawatt hours, also substantially up from the 85 gigawatt hours produced a year earlier after the company acquired new power generation sites in 2014.
At the end of June, Alkane said around 90% of its 2015 base load output is contracted at an average price of GBP52 per megawatt hour, down from GBP53 per megawatt hour a year earlier. In addition, the company has contracted 45% of its 2016 base load output at GBP50 per megawatt hour, it said.
"We are delighted with the 25% increase in output and greater than 40% increase in generation revenue, which is a reflection of successful delivery on the Alkane growth strategy," said Chief Executive Neil O'Brien.
In addition, the company said it has begun building its 28th power plant. The coal mine methane site is at Markham Main in South Yorkshire, which is expected to begin generating power in the second half of 2015.
Coal mine methane refers to the process of capturing the vast amount of methane emissions arising from coal mining activities.
Alkane has 12 coal mine methane sites that stretch between Nottingham and Leeds, with three further sites located near Stoke, Swansea and Canterbury respectively. The company's other power generation sites are also mainly located between Nottingham and Leeds, with other sites also near Worcester and Cardiff.
Alkane shares were up 0.6% to 22.61 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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