27th Jul 2007 12:17
Renewable Energy Holdings plc27 July 2007 27 July 2007 Renewable Energy Holdings plc ("REH" or "the Company") EDF collaboration and investment Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor and operatorof proven and innovative renewable energy technologies, is pleased to announcethat the Company has today entered into a binding Memorandum of Understanding ("MOU") with EDF Energies Nouvelles SA ("EDF EN"). Under the terms of the MOU, EDFEN and the Company have agreed to conclude a Collaboration Agreement which willexclusively permit EDF EN to develop offshore wave power projects in theNorthern Hemisphere and at Reunion Island in the Indian Ocean (together, the "Territory of Exclusivity"), using REH's proprietary CETO wave power technology. CETO is the first wave power converter to sit on the seabed, where it isinvisible, safe from storms and ocean forces, and self contained. Unlike otherwave energy technologies that require undersea grids and costly marine qualifiedplant, CETO requires only a small diameter pipe to carry high pressure seawaterashore to either a turbine to produce electricity, or to a reverse osmosisfilter to produce fresh water. Under the terms of the MOU, REH will have the right, but not the obligation, toparticipate in each CETO wave power project developed by EDF EN in the Territoryof Exclusivity. In the event REH does not exercise its right to participate inany such project, EDF EN will have the right to develop such project with anypartner of its choice. Each project will be developed by a separatelyestablished Special Purpose Company ("SPC"). In any project in which REH choosesto participate, the Company will be entitled to an equity interest of between25% and 49% in each SPC, depending on the scale of the project being developed.It is expected that each project will be financed by a combination of equity anddebt, with the equity contributions being in proportion to the parties'respective ownership interests in the SPC. All intellectual property rightsrelating to CETO will however remain the property of REH, which will grantlicences to the SPCs to use the technology on a project-by-project basis inreturn for a licence payment to the value of 3% (dropping to 2% in certaincircumstances) of the total costs of each project. In addition, EDF EN has agreed, subject to and conditional upon respective boardapprovals, there being no material adverse change to the REH business or to anyapplicable legislation or regulation before the Collaboration Agreement isentered into, and the Collaboration Agreement together with certain relateddocuments being agreed by REH and EDF EN, to subscribe for 6.0 million newordinary Company shares of 1 pence each ("New Ordinary Shares") at a price of50.0 pence per share, for a total amount of £3.0 million. The funds raised willbe used for finalising the prototyping and industrial development of the CETOtechnology in order to bring it to a point where it is ready for commercialdeployment. The New Ordinary Shares are expected to be issued in September 2007, and will beissued pursuant to the Company's existing authorities as approved at theCompany's last annual general meeting. Application will be made for the NewOrdinary Shares to be admitted to trading on AIM. Mike Proffitt, Chief Executive Officer of REH, commented: "We are very pleasedindeed to have a development partner of the calibre of EDF EN. They havedemonstrated their interest and belief in the CETO wave technology by enteringinto advanced negotiations regarding specific projects and by investing in theCompany. This gives us confidence in the belief that the CETO wave energy devicecan be a global success." Enquiries: Renewable Energy Holdings plc Nabarro Wells & Co. LimitedMike Proffitt, Chief Executive Richard SwindellsTel: 01624 641199 Tel: 020 7710 7400 Redleaf Communications LimitedEmma Kane/Sam Robbins/Paul DulieuTel: 020 7822 0200 Notes to editors: About Renewable Energy Holdings Renewable Energy Holdings Plc is an AIM listed International Company establishedto be an operator of, and undertake active investment in, both proven andinnovative renewable energy technologies. The Directors and executive team of REH have significant experience in both theconventional and renewable energy sectors, both in the UK and overseas andthrough their experience have built up a broad international network ofrelationships with individuals, companies, governments and lobby groups, whichshould assist the company as it seeks to make investment within the renewableenergy sector. The Company was incorporated in the Isle of Man on 8 October 2004 and listed onthe London Stock Exchange's AIM Market in February 2005. Further information can be found at www.reh-plc.com About CETO The CETO device is a proprietary technology that converts the energy of wavesinto electricity and freshwater. CETO is the first wave power converter to sit on the seabed, where it isinvisible, safe from storms and ocean forces, and self contained. Unlike otherwave energy technologies that require undersea grids and costly marine qualifiedplant, CETO requires only a small diameter pipe to carry high pressure seawaterashore to either a turbine to produce electricity, or to a reverse osmosisfilter to produce fresh water. The device consists primarily of a novel pump anchored to the seafloor anddriven by a spherical buoyant actuator that collects the wave energy andtransmits it to the pump. High pressure seawater is delivered ashore where itcan be used to drive a turbine to generate electricity or passed through areverse osmosis desalination unit to produce freshwater. One of the mainadvantages CETO has over the current generation of desalination plants is thatthe energy used to pump the seawater through the desalinator is 100% clean andrenewable as opposed to pumps driven by energy sourced from fossil-fuels. As aresult the CETO device can truly claim to produce zero-emission electricity andfreshwater.-------------------------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
REH.L