11th Aug 2014 10:23
LONDON (Alliance News) - Renewable Energy Generation Ltd Monday said it expects to report revenue and pre-items earnings before interest, tax, depreciation and amortisation for the financial year recently ended that are in line with market expectations.
The company will publish its results for the year to June 30 on October 13, but gave a trading update Monday.
It said construction at the 10 megawatt St Breock wind farm and the eight megawatt Ramsey Extension site (8MW) is underway, with GBP21 million of funding secured from Dutch bank ING. Turbine deliveries are expected in early 2015 for both sites. The Denzell Downs, French Farm 1, Rodbaston College and Brackagh Quarry wind farms are all are expected to move into construction later in the company's current financial year.
The renewable energy company also said construction of its Whitemoor 18 megawatt bio-power generation plant, fuelled by the patented bio-fuel LF100, is now well advanced and the project is expected to become operational under the National Grid's Short Term Operating Reserve programme in September.
Two further bio-power sites are in the planning system, with three further schemes expected to enter planning later this financial year. The company is planning to build at least 100 megawatts of bio-power plant in the period to March 2017.
"Volumes in the group's used cooking oil collection and aggregation business, Living Fuels, have grown by 72% year on year and oil collections and contracted volumes are at a level to service REG's expansion plans for this division," it said in the statement.
It added that its operating STOR bio-power plant has seen much stronger utilisation since starting a new contract in April of this year.
"REG Bio-Power is now building REG's largest UK project in terms of installed capacity. With OFGEM warning consistently of capacity shortages we plan to have three new green generation plants online by Winter 2015 totalling 54 megaatts of capacity. These will be among the lowest cost flexible generation providers in the UK," Chief Executive Andrew Whalley said.
In June, Renewable Energy Generation sold its first solar project, the 4.5 megawatt Goonhilly Downs project, to strategic partner BlackRock for a total of GBP5.7 million, and now manages the project through its asset management unit, a division it is hoping to grow.
It has also signed three option agreements with Veolia UK to develop, build and operate solar projects on three restored landfill sites. The sites have an expected combined installed capacity of 60 megawatts and planning applications have already been submitted for the three schemes.
"Our agreement with Veolia, alongside development prospects at wind farm sites with capacity to accommodate solar, provides a further excellent platform for diversification," Whalley said.
The company's shares were up 0.5% at 67.20 pence Monday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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