10th Dec 2007 07:00
Renewable Energy Holdings plc10 December 2007 10 December 2007 Renewable Energy Holdings plc ("REH" or "the Company") Agreement to purchase wind farm site in Poland Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor and operatorof proven and innovative renewable energy technologies, is pleased to announcethat it has entered into an agreement to purchase the Kobylany Wind Farm site inPoland, which is expected to have a generating capacity of 30MW when developed. REH entered into a non-binding letter of intent to purchase the site in December2006 with a consortium of Polish companies and individuals ("Consortium"). TheConsortium has prepared plans for the Kobylany Wind Farm, which envisage 30MW ofgenerating capacity with an accompanying off-take infrastructure and transformerstation. During the last 12 months, the Consortium have been working on thenecessary opinions, administrative decisions and permits etc, necessary for thedevelopment of the Kobylany Wind Farm. REH, via a to be established Polish subsidiary, has entered into a bindingagreement to purchase the Kobylany Wind Farm project. REH will pay aconsideration of €68,000 (plus VAT) per MW of generating capacity, equating to atotal of €2.04 million plus VAT. The Agreement allows for an initial lease termof 25 years of the site, with an option to extend for a further 25 years, for anannual lease payment of €25,000 (plus VAT). In addition, an annual lease paymentof €7,000 (plus VAT) will be payable for each wind turbine located on the site.It is expected that there will be 15 wind turbines at the site. Once the consortium have completed all the necessary permitting etc, financialclose of the acquisition will occur, with a back stop date of 30 June 2008. REH intends to finance the construction of this wind farm using its creditfacility with Standard Chartered Bank. It is expected that construction willstart late spring 2008. Commenting on the acquisition, Mike Proffitt, Chief Executive of REH said: "At 30MW this is a sizeable project and marks the onset of our program to expandin Europe. We are delighted to be developing in Poland, where both the wind andeconomic jurisdiction offer good opportunities for wind farms." - ends - For further information please contact: Mike Proffitt, Chief ExecutiveRenewable Energy Holdings plc Tel: 01624 641199 Katherine RoePanmure Gordon - Broker to REH Tel: 020 7459 3600 Richard SwindellsNabarro Wells - Nominated Adviser to REH Tel: 020 7710 7400 Emma Kane / Samantha Robbins / Paul DulieuRedleaf Communications Tel: 020 7822 0200 Notes to Editors About Renewable Energy Holdings • Renewable Energy Holdings is an international company established to be an operator of, and undertake active investment in, both proven and innovative renewable energy technologies. • REH owns two operational wind farm sites is Germany, Kesfeld (32.5MW) and Kirf (8MW). In addition, REH is at various stages of development of further wind farm sites in Poland and Wales. • REH owns a 1MW methane Landfill Gas Project in Powys, Wales. • CETO is REH's innovative wave power technology. It is the first wave power converter to sit on the seabed, where it is invisible, safe from storms and ocean forces, and self contained. Unlike other wave energy technologies that require undersea grids and costly marine qualified plant, CETO requires only a small diameter pipe to carry high pressure seawater ashore to either a turbine to produce electricity, or to a reverse osmosis filter to produce fresh water. • The Directors and executive team of REH have extensive experience in both the conventional and renewable energy sectors, both in the UK and overseas, and through their experience have built a broad international network of relationships with individuals, companies, governments and lobby groups. • The Company was incorporated in the Isle of Man on 8 October 2004 and listed on the London Stock Exchange's AIM Market in February 2005. • Further information can be found at www.reh-plc.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
REH.L