27th Jan 2014 07:00
Renewable Energy Generation Ltd
CONTRACT FOR CONSTRUCTION OF 18MW BIO-POWER
ELECTRICITY GENERATION PLANT
Renewable Energy Generation Limited ("REG") (AIM: WIND), the UK renewable energy group, announces that it has signed contracts with Finning UK and Caterpillar Financial Services (UK) Limited ("Caterpillar Financial") for the construction, operation and financing of an 18MW bio-power plant at Whitemoor Business Park near Selby, Yorkshire.
Finning UK will be responsible for the design, construction and ongoing maintenance of the project, intended to be the first of a series of REG plants providing clean, high efficiency standby generation capacity. The project will utilise REG's patented LF100 fuel derived from recycled waste cooking oil.
The project is expected to cost £6.3m of which REG will initially contribute 15%. The plant is anticipated to become operational during the second half of 2014 at which point Caterpillar Financial will provide funding of 70% of the project costs through a long-term debt facility, the balance being provided by REG.
Andrew Whalley, Chief Executive Officer said:
"We are delighted to be procuring engines from the world's largest diesel engine manufacturer to build the Whitemoor project. That Finning is prepared to build and operate the plant whilst Caterpillar Financial is providing long-term debt finance to the new facility, demonstrates the commercial application of a process that has taken us many years to perfect.
"We believe the standby generation market will grow strongly, a result of the closure of older electricity generation plant 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".
Enquiries:
Renewable Energy Generation Limited Andrew Whalley, Chief Executive Officer David Crockford, Finance Director Ian Lawrence, Communications Manager | +44 (0)1483 901 790 |
Smith & Williamson Corporate Finance Limited (Nominated Adviser) Martyn Fraser | +44 (0)117 376 2213 |
Cenkos (Corporate Broker) Bobbie Hilliam/Max Hartley | +44 (0)20 73978900 |
Broker Profile Simon Courtenay | +44 (0)20 7448 3244 |
Notes to editors
Renewable Energy Generation Ltd (REG) is a UK renewable energy group. Its main business is the development, construction and operation of wind farms and generating power from refined used cooking oil.
REG Windpower: based in Truro, Bath and Guildford, UK, it currently operates 14 wind projects in Cambridgeshire, Cornwall, County Durham, Yorkshire, Lancashire, Cumbria and Gwynedd, with a total capacity of 67.15MW and has a development pipeline of over 1,000MW.
REG Bio-Power UK Ltd: based in Nottingham, UK: it operates electricity generation plant powered by fuel recovered from 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).
About Caterpillar Financial: For over 30 years, Caterpillar Financial, a wholly-owned subsidiary of Caterpillar Inc., has been providing financial service excellence to customers. The company offers a wide range of financing alternatives to customers and Cat® dealers for Caterpillar machinery and engines, Solar® gas turbines and other equipment and marine vessels. Caterpillar Financial has offices and subsidiaries located throughout North and South America, Asia, Australia and Europe, with its headquarters in Nashville, Tennessee.
www.renewableenergygeneration.co.uk
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