5th Nov 2008 07:00
5 November 2008
Renewable Energy Holdings plc
("REH" or "the Company")
Welsh Wind Farm
Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor and operator of proven and innovative renewable energy technologies, is pleased to announce that the Company has entered into a conditional sale and purchase agreement ("SPA") with Mynnydd y Gwynt ("Development Company"), the vendors of the proposed wind farm site in Wales ("Vendors").
This follows REH's previous announcement regarding Mynnydd y Gwynt in June 2007 since when REH and its advisers have conducted due diligence and assessed the viability of a wind farm development on the site.
Under the terms of the SPA, REH has paid £750,000 in cash to the Vendors immediately for the grant of an option to purchase the Development Company and will pay a further £15.18 million, to be satisfied as to £12.18 million in cash upon the Vendors obtaining all required planning, construction and operating permits for the wind farm site and £3.0 million as a loan note to be paid on completion of construction of the wind farm. The payments above include the prepayment of 25 years of ground rents and easements on the wind farm site. REH is able to terminate the SPA at its sole discretion if the Vendors do not fulfil their obligations by 31 December 2009, subject to extension by mutual agreement, or if it is not able to obtain suitable financing. The Board of REH (the "Board") intends to apply part of its existing loan facility with Standard Chartered Bank to the construction and development of this wind farm site.
The Board believes that the wind farm site at Llangurig, mid-Wales, is capable of providing up to 69MW of generating capacity and an independent wind study has indicated a net capacity factor of 36% for this site. This capacity factor compares well against the UK average of 28-32% and is on a par with north west Scotland at the top of the range.
Mike Proffitt, Chief Executive Officer of REH, commented: "We have been working on the development of this opportunity for over 12 months and I am delighted to have reached this stage in what may be one of the best producing wind farms in the UK. Wind in this region has been measured for several years and we expect to generate well in excess of 200,000 MWH annually.
"This is a milestone achievement in the development of REH in keeping with original objectives communicated to shareholders."
Howard Evans, Chief Executive Officer of Mynnydd y Gwynt, commented: "We are very pleased to have reached this agreement with REH whom we have dealt with previously, and in whom we have every confidence to succeed in the realisation of what should be one of the UK's best wind farm projects."
For further information please contact:
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Mike Proffitt, Chief Executive |
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Renewable Energy Holdings plc |
Tel: 01624 641199 |
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Richard Swindells / Andrew Craig |
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Ambrian Partners - Nominated Adviser & broker to REH |
Tel: 020 7634 4700 |
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Samantha Robbins / Paul Dulieu |
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Redleaf Communications |
Tel: 020 7822 0200 |
Notes to Editors
About Renewable Energy Holdings plc
Renewable Energy Holdings ("REH") is an international company established to be an investor in and operator of both proven and innovative renewable energy technologies.
REH owns two operational wind farm sites in Germany, Kesfeld (32.5MW) and Kirf (8MW). In addition, REH is at various stages of development of further wind farm sites in Poland and Wales.
REH owns a methane Landfill Gas Project in Powys, Wales which is at an early stage of gas collection, currently producing at 1MW and which is expected to increase as the landfill matures.
CETO is REH's innovative wave power technology. It is the first wave power converter to sit on the seabed, where it is invisible, safe from storms and ocean forces, and self contained. Unlike other wave energy technologies that require undersea grids and costly marine qualified plant, CETO requires only a small diameter pipe to carry high pressure seawater ashore to either a turbine to produce electricity, or to a reverse osmosis filter to produce fresh water. CETO is currently deployed off Fremantle, Western Australia undergoing commercial testing.
The Directors and executive team of REH have extensive experience in both the conventional and renewable energy sectors, both in the UK and overseas, and through their experience have built a broad international network of relationships with individuals, companies, governments and lobby groups.
The Company was incorporated in the Isle of Man on 8 October 2004 and listed on the London Stock Exchange's AIM in February 2005.
Further information can be found at www.reh-plc.com.
Related Shares:
REH.L