Alkane Energy PLC AGM Statement and Trading Update (9807F)
01 Maggio 2014 - 8:00AM
UK Regulatory
TIDMALK
RNS Number : 9807F
Alkane Energy PLC
01 May 2014
1 May 2014
Alkane Energy plc
("Alkane" or the "Group")
AGM Statement and Trading Update
The Board of Alkane Energy plc, the independent gas to power
producer, will make the following statement on current trading at
the Group's Annual General Meeting to be held at 11.00am today.
Output in the first three months of 2014 has reached 48GWh in
comparison to 51GWh in the same period in 2013. Our portfolio of
base load coal mine methane ("CMM") sites is producing in line with
budget, with the Maltby power plant due to go back into production
during May 2014 following the planned decommissioning of the mine
in Q1 2014.
Our power response sites are connected to mains gas and produce
electricity at times of high electrical demand. We participate in
the National Grid's short term operating reserve programme ('STOR')
to help meet temporary supply shortages, and activity for the first
quarter of the year has been encouraging. Our expansion plans are
progressing well with contracted STOR capacity increasing from 21MW
at the start of 2014 to 36MW for the coming winter period.
Market selling prices for base load output have remained stable
and the Group now has 76% of expected 2014 output contracted at
GBP53MWh and 47% of expected 2015 output contracted at GBP54MWh.
Whilst we have placed only 7% of contracts for 2016, current market
prices would be in excess of GBP55MWh.
Neil O'Brien, Chief Executive Officer, commented:
"Alkane's strategy remains to increase our generating capacity
at a time when the UK is facing a much tighter energy market.
Regarding our base load CMM operations, we are planning to drill
at Markham Main, Yorkshire during the summer and have a series of
other projects progressing through planning and permitting. On the
power response side of our operations, Alkane is on track to
deliver on our stated aim to reach an installed capacity of 50MW by
Spring 2015 which includes our newest site at Wheldale, Yorkshire,
acquired from SSE plc earlier this year"
Notes to Editors
For more information please contact:
Alkane Energy plc
Neil O'Brien, Chief Executive
Officer
Steve Goalby, Finance Director 01623 827927
Liberum
Clayton Bush
Tim Graham 020 3200 2000
VSA Capital Group Limited
Andrew Raca 020 3005 5000
Hudson Sandler
Nick Lyon
Alex Brennan 020 7796 4133
Background information
Alkane is one of the UK's fastest growing independent power
generators. The Company operates mid-sized "gas to power"
electricity plants providing both base load and fast response
capacity to the grid. Following the acquisition of the Wheldale
power response assets, Alkane now has a total of 90MW of installed
generating capacity and an electricity grid capacity of 110MW.
Alkane's base load operations, where power is generated 24/7,
are centred on a portfolio of coal mine methane ("CMM") sites.
Alkane has the UK's leading portfolio of CMM licences, enabling the
Company to extract gas from abandoned coal mines.
As CMM declines at any one site, Alkane retains valuable
generating capacity and a grid connection which can be redeployed
to power response. Power response sites are connected to mains gas
and produce electricity at times of high electrical demand through
peak running, or in order to balance the electricity grid through
participation in the National Grid's short term operating reserve
programme ("STOR"). Participants in STOR are paid premium rates
when called upon by the Grid to meet temporary supply shortages.
Alkane now operates 43MW of power response on mains gas.
The Group operates from 24 mid-size (up to 10MW) power plants
across the UK, 15 CMM only, 6 mains gas only, and 3 using both fuel
sources. Alkane uses standard modular reciprocating engines to
generate the electricity and sells this power through the
electricity network. The engine units and other plant are designed
to be flexible and transportable allowing additional capacity to be
brought onto growing sites and underutilised plant to be moved to
new sites to maximise efficiency.
Alkane has a range of core skills encompassing the entire
project development cycle including planning and permitting,
sourcing plant and managing the build and commissioning stage. This
has enabled Alkane to establish a design, build and operate ("DBO")
business for third party clients in the biogas and oil & gas
industries.
The Group has more than 800km(2) of acreage under various
onshore Petroleum Exploration and Development Licences ("PEDLs").
Alkane retains a 100% interest in the majority of these PEDLs,
which extend to all of the hydrocarbons recoverable from these
licence areas. This includes any CMM, natural gas, coal bed methane
("CBM") or shale gas.
More information is available on our website
www.alkane.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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