13th Jun 2007 07:01
Renewable Energy Generation Ltd13 June 2007 13 June 2007 Renewable Energy Generation Ltd ("REG" or "the Company") Operational Progress Renewable Energy Generation (AIM: RWE), the developer of renewable energyprojects, announces an operational update on activities in Canada and the UK. Highlights • Progress on the Canadian Standard Offer Programme ("SOP") - Orders placed (June 2007) for a further 18 turbines totalling 29.7MW from Vestas Canadian Wind Technology Inc ("Vestas Canada") - expected in Autumn 2008 - 7 SOP projects now scheduled for construction in Canada over the next 18 months, totalling 69.3MW - On-site construction on first 4 projects to commence in the next few weeks • Progress on UK build programme - Two turbines recently purchased for 1.7MW Roskrow Barton project for December delivery • REG welcomes increased support for high efficiency biomass proposed in recent UK Government White Paper on Energy. Andrew Whalley, CEO of REG said: "Our orders placed this week bring to more than 100MW the turbine capacityprocured from Vestas in Canada, Poland and the UK. The latest project, atRoskrow Barton is on one of the UK's best wind sites. In the UK, as in Canada,we aim to make a significant contribution to the achievement of governmentcommitments to renewable energy. We are also enthusiastic about prospects forour biomass business where recently reinforced UK Government support for theindustry is very welcome. Over the past two years REG has secured development portfolios in the UK andCanada with the potential for more than 2000MW. We are well placed to build andoperate this portfolio whilst exploring opportunities in other developedtechnologies such as biomass." Ontario SOP programme REG has signed turbine supply and associated service and warranty agreementswith Vestas Canada to supply eighteen V82-1.65MW turbines totalling 29.7MW withdelivery expected to commence in Autumn 2008. The total project cost includinglandowner payments, electrical interconnection, civil engineering and turbineswill be approximately £33m. The turbines will be deployed on three 9.9MW projects being developed by REG'sCanadian subsidiary, APG, under the SOP Programme in Ontario. These projects areadditional to the four projects announced in December and will mean REG hasseven SOP projects under construction in Canada over the next eighteen months.These projects total 69.3MW and are being constructed at a total cost ofapproximately £73m. On-site construction on the first four SOP projects will start in the next fewweeks with turbine delivery commencing in October this year. APG is working onadditional SOP projects in Ontario. UK operational update In the UK, REG's operating subsidiary, CLP, has procured turbines for theRoskrow Barton project in Cornwall, UK. This is a two turbine project, with aninstalled capacity of 1.7MW. The site has an excellent wind resource, and will contribute significantlytowards Cornwall's Renewable Energy targets. CLP selected Vestas V52 turbinesas they have an outstanding track record worldwide and are well suited to suchhigh wind sites. Turbine delivery is on fast-track for December 2007. UK biomass CLP welcomes the further encouragement in highly efficient biomass, featured inthe UK government's recent White Paper on Energy. Highly efficient small scalebiomass projects are recommended to be eligible for 'double Renewable ObligationCertificates". This improves the economics considerably, and CLP is pleased thatits entry into this sector was effected in late 2006. CLP's first biomass project is under development and is progressing well.Further opportunities are under consideration. CLP moved early into thisemerging segment and believes that considerable value will be created over thecoming years as a result of the UK government's increased support. Further information Renewable Energy GenerationAndrew Whalley (01483) 400 425 Bell Pottinger Corporate & FinancialNick Lambert / Amy Rajendran / Antonia Coad (020) 7861-3232 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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