1st May 2014 11:55
LONDON (Alliance News) - Alkane Energy PLC said Thursday that output in the first quarter was slightly down on the comparative period and that its Maltby power plant is due to go back into production during May 2014.
In a statement released ahead of its annual general meeting Thursday the independent gas to power producer said output in the first three months of 2014 reached 48 gigawatt hours in comparison to 51 gigawatt hours in the same period in 2013.
Alkane Energy said its portfolio of base load coal mine methane sites is producing in line with budgets, and that its Maltby power plant is due to go back into production during May 2014 following the planned decommissioning of the mine in the first quarter of 2014.
Looking ahead the firm said its expansion plans are progressing well, with contracted short term operating reserve programme - the firm participates in National Grid's STOR to help meet temporary supply shortages - capacity increasing from 21 meagawatts at the start of 2014 to 36 megawatts for the coming winter period.
Alkane said market selling prices for base load output has remained stable, the group now has 76% of expected 2014 output contracted at GBP53 per megawatt hour and 47% of expected 2015 output contracted at GBP54 per megawatt hour. "Whilst we have placed only 7% of contracts for 2016, current market prices would be in excess of GBP55MWh," said the company.
"Alkane's strategy remains to increase our generating capacity at a time when the UK is facing a much tighter energy market," said Chief Executive Neil O'Bien. "Regarding our base load CMM operations, we are planning to drill at Markham Main, Yorkshire during the summer and have a series of other projects progressing through planning and permitting. On the power response side of our operations, Alkane is on track to deliver on our stated aim to reach an installed capacity of 50MW by Spring 2015 which includes our newest site at Wheldale, Yorkshire, acquired from SSE earlier this year."
Shares in Alkane Energy last traded at 40 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Alkemy Capital.