14th Jun 2010 07:00
Press Release 14 June 2010
Renewable Energy Generation Limited
("REG" or the "Company")
Acquisition of 4.95MW wind farm from E.ON Climate and Renewables UK Operations Limited
Renewable Energy Generation Limited (AIM: WIND) today announces the acquisition of a 4.95MW wind farm from E.ON Climate and Renewables UK Operations Limited for an initial cash consideration of up to £2.8 million. A further cash consideration of up to a maximum of £1.2 million will be payable subject to receipt of planning permission to repower the site.
The acquisition is expected to be immediately free cash flow positive and earnings accretive.
Currently comprising 11 turbines, the St. Breock wind farm in Cornwall has been generating electricity since 1994. With an average annual output of approximately 11 GWh, the site generates enough renewable energy to supply over 2500 homes.
REG has conducted detailed due diligence on the wind farm with the aim of repowering it to increase capacity. Further development work is underway in advance of a planning submission.
The acquisition is in line with the Company's strategy to acquire as well as self develop, own and operate wind farms in the UK and at current capacity, St Breock will increase the Group's operating wind capacity to 26MW.
Andrew Whalley, Chief Executive Officer of REG, commented:
"The acquisition of the St. Breock wind farm is an excellent opportunity to repeat the strategy employed at Goonhilly of acquiring an operating wind farm with the intention of repowering it with new, more efficient, turbines. The purchase further underlines REG's intention of investing £100 million in renewable energy projects over the next three years through organic growth from its 350MW development portfolio and opportunistic acquisition."
Enquiries:
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Renewable Energy Generation Limited Andrew Whalley, Chief Executive Officer David Crockford, Finance Director
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+44 (0)1483 901 790 |
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Lexicon Partners (Financial Adviser to REG) Read Gomm
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+44 (0)20 7653 6000 |
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Smith & Williamson Corporate Finance Limited (Nominated Adviser) Nick Reeve / Martyn Fraser
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+44 (0)117 376 2213 |
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Piper Jaffray Limited - Corporate Broker Jens Rosebrock / Charlie Lilford
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+44 (0)203 142 8700 |
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Hogarth Ltd Sarah MacLeod / Vicky Watkins
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+44 (0)20 7357 9477 |
Notes to Editors:
Renewable Energy Generation Ltd (REG) is a UK-focused renewable energy group. The Group's main business is the development, construction and operation of wind farms. It also generates power from refined used cooking oil. Headquartered in Jersey, REG was admitted to trading on AIM, a market operated by the London Stock Exchange, in May 2005 (AIM: WIND).
www.renewableenergygeneration.co.uk
Related Shares:
WIND.L