15th Feb 2007 07:02
Renewable Energy Generation Ltd15 February 2007 Renewable Energy Generation Ltd ("REG" or "the Company") Operational Update REG, the developer of renewable energy projects, today announces an operationalupdate ahead of its results for the six months to 31 December 2006. • Significant UK operational progress - High Sharpley entered commercial service on time and on budget last month - High Pow to enter commercial service as planned this month - Braich Ddu turbine installation expected next month - Land purchased for expansion of High Sharpley - Small scale Biomass project • Intention to expand construction programme in Canada • Cash generation from Poland • Changes to the Board Mike Liston Chairman of REG said "Having demonstrated already our ability tosecure substantial opportunities for wind power development, particularly in twoof the most attractive territories for renewable energy, the operational updateannounced today demonstrates rapid progress with permitting, turbine procurementand construction. With turbines being installed on one project in each month ofthe current quarter, we will soon have 16MW of operational plant in the UKwhilst in Canada turbine delivery is on schedule and will commence in Octoberthis year". Enquiries REG Power Management LtdAndrew Whalley +44 (0) 1483 400 425 Bell Pottinger Corporate & FinancialNick Lambert / Amy Rajendran / Antonia Coad +44 (0) 20 7861-3232 UK REG's first new project at High Sharpley (2.6MW) is fully commissioned and isgenerating cash flow for the Company. REG's second new UK project at High Pow (3.9MW) is expected to be in fulloperation and generating, by the end of this week, once electrical connection isfinished. REG has also entered into two separate, one and a half year powerpurchase agreements with Smartest Energy, part of the Marubeni Group of Japan,covering electrical output from both sites. Under these agreements power fromthe projects, including climate change levy exemption certificates and peakdemand benefits, but excluding renewable obligation certificates ("ROCS") willbe sold to Smartest Energy under fixed terms. ROCs generated by the projectswill be sold on an opportunistic basis, as REG believes that this is likely tomaximise value to shareholders. REG's project at Braich Ddu (3.9MW) is on programme for completion of turbineinstallation next month. Output from the site will be sold through SmartestEnergy on the same terms as outlined above. REG has entered into an agreement to purchase a tract of land bordering itsexisting project at High Sharpley. REG believes that a larger wind project maybe accommodated on this site subject to planning approval being granted. Inaddition several other of REG's UK projects are now moving into the final stagesof planning and it is expected that a number may be fully consented later thisyear. Of these Roskrow Barton, REG's 1.7MW project in Cornwall, has now had allplanning conditions discharged and REG is in the process of procuring turbinesfor this site for construction in 2007. REG has been approached by a biomass development company and asked to act asprincipal in a 1MW biomass Combined Heat & Power project in the UK. REG hassubsequently been awarded a government grant to cover part of the developmentcosts, and is proceeding to investigate the opportunity. Whilst the project issmall, REG believes that small-scale biomass offers an attractive andpotentially significant opportunity for future profitable growth. Canada During December REG announced the purchase of twenty-four Vestas V82 turbinesfor deployment on four 10MW projects in Ontario being developed by itssubsidiary AIM PowerGen under the province's standard offer programme ("SOP").REG has negotiated delivery of the Vestas turbines starting in Autumn of thisyear. In both the UK and Canada, REG's ability to secure turbines in a presentlytight market comes from its equity-based purchasing power and the industryknowledge and standing of its professionals. It is REG's intention to expand itsprogramme of Ontario SOP projects to allow REG to become one of the leadingparticipants in this marketplace over the next eighteen months. Poland The Tymien project in Poland, in which REG has an investment of £8m, isperforming well and REG anticipates its first dividends from the project inApril. Changes to the Board Tod Kersten, non-Executive Director, has resigned from the Board today due toconflicting pressures of work. A replacement non-executive Director withspecific experience of the energy sector will be appointed in due course. TheDirectors would like to take this opportunity to thank Tod for his enthusiasmand timely expertise during the formative stages of REG's development. The Board expects to release its interim results for the six months ended 31December 2006 on 22 March. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
WIND.L