27th Jan 2014 11:33
LONDON (Alliance News) - Renewable Energy Generation Ltd Monday said it has signed contracts for the construction, operation and financing of an 18 megawatt bio-power plant in Yorkshire.
The UK renewable energy company said the deal with Finning UK and Caterpillar Financial Services Ltd is expected to cost GBP6.3 million, of which REG will initially contribute 15%.
The company said the site, at the Whitemoor Business Park near Selby, is expected to become operational during the second half of 2014, at which point Caterpillar Financial will provide funding of 70% of the project through a long-term debt facility.
REG said that Finning UK will be responsible for the design, construction and ongoing maintenance of the project, which will use REG's patented LF100 fuel, derived from recycled waste cooking oil.
"We believe the standby generation market will grow strongly, a result of the closure of older electricity generation plants leading to greater intermittency on the UK grid. REG is in a strong position to participate in this growth, utilising its proven, clean generation technology," REG's Chief Executive Officer Andrew Whalley said in a statement.
Renewable Energy Generation shares were up 0.9% to 72.88 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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