17th Dec 2009 07:00
|
For immediate release |
17 December 2009 |
HARGREAVES SERVICES PLC
(the "Company" or the "Group")
Launch of Rocpower
New Operation for Group
Hargreaves Services plc (AIM:HSP), a leading supplier of products and services to the energy, mineral and waste sectors announces the commissioning of the first of five engines at Rocpower's first eight MW electricity generation plant at Commonside Lane in Wakefield.
The Group announces that the bulk of construction work has been completed and, following the commissioning of the first engine, the site has now successfully passed its grid compatibility test and exported electricity to the national grid. The next two generation sets are expected to commence commissioning before the end of December, with the final sets due for commissioning early in the New Year. Renewable Obligation Certificate ("ROC") accreditation from OFGEM has been applied for and is expected shortly.
The Group has sourced options over a further five sites in Yorkshire and Lancashire which we are looking to develop along similar lines.
The Rocpower operation utilises many parts of Hargreaves' existing integrated supply chain. Each plant comprises a number of heavy fuel oil engines that have been adapted to run on a broad spectrum of sustainable renewable fuels. The fuel is sourced in large shipments by the Group's joint venture, Rocfuel. The fuel is imported and managed by the Hargreaves team at the port of Immingham and will be distributed to the sites using the Group's tanker fleet.
Each plant can produce enough energy to heat 15,000 homes and reduces Hargreaves' carbon footprint, saving 41,000 tonnes of CO2 per year, the equivalent of taking 90 trucks off the road.
The first plant has been built to develop the control infrastructure necessary to support additional sites. The capital cost of the first plant is in the region of £3.5m. Subsequent incremental plants are anticipated to cost approximately £2.8m each.
It is not anticipated that Commonside Lane will contribute to profits in the current financial year. Management have targeted a maximum 3 year payback on each plant.
Gordon Banham, Chief Executive, Hargreaves Services plc, said:
"Rocpower demonstrates the agility and creativity at Hargreaves. This is an important project for us and sits very logically and synergistically alongside our existing solid fuel sourcing, processing and distribution operations. Through drawing on Group skills and resources we have given this project a very fast start. We will continue to develop this exciting project and whilst doing so we will also use it to develop a broader renewable fuel integrated value chain. It is pleasing to be sponsoring a project with green credentials."
Robert Kennedy, Managing Director of Rocpower and Rocfuel, said:
"Fuel availability and price are the key determinants of success in renewable generation projects. We have researched this field extensively over the last five years through our Rocfuel activities. We have been careful to design our plants and fuel processing systems to be capable of handling a very broad range of bio-oils and are confident that Rocpower is well placed to deal with the dynamic renewable fuel markets."
Enquiries
Hargreaves Services plc 0191 373 4485
Gordon Banham CEO
Iain Cockburn, Group Finance Director
Buchanan Communications 0207 466 5000
Tim Anderson, Catherine Breen, Stasa Filiplic
Brewin Dolphin Securities 0113 241 0130
Matt Davis, Graeme Summers
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