Alkane Energy PLC Alkane Wins National Grid Contracts (4296S)
24 Settembre 2014 - 8:01AM
UK Regulatory
TIDMALK
RNS Number : 4296S
Alkane Energy PLC
24 September 2014
24 September 2014
Alkane Energy plc
Alkane wins National Grid demand side balancing contracts for
2014/2015
Alkane Energy plc ("Alkane") is delighted to announce that it
has been successful in winning some of the first demand side
balancing contracts for the 2014/15 winter season. These contracts
are part of National Grid's Demand Side Balancing Reserve ("DSBR")
programme which is designed to provide additional balancing
services to the UK electricity market during periods of high demand
and will provide a new income stream for Alkane.
The contracts are to supply 56MW capacity to National Grid
during periods of high system demand over the winter season running
from 1 November 2014 to 28 February 2015. They are among the very
first contract awards under interim measures introduced by National
Grid to ensure that as System Operator, it has the tools to deal
with tightening margins in the coming winters.
This award is a reflection of Alkane's cost effective, flexible
and highly reliable operating assets. The current generating fleet
provides an ideal partner to National Grid in meeting its security
of supply targets and gives Alkane confidence in bidding into the
capacity market and other balancing services in the coming
years.
The winter of 2014/15 will be the first year of operation of
this new initiative with the overall programme being designed to
cover the winter peak period from 4pm to 8pm each weekday between
November and February. Alkane will receive a two hour warning from
National Grid if it is required to generate. Alkane is not
expecting any significant additional capital expenditure or
operating costs to service this new market, which will be
accommodated by Alkane's existing power response fleet.
Neil O'Brien, Alkane's CEO, commented:
"Our power response strategy is built on being a reliable, cost
effective and flexible partner for National Grid. I am delighted to
see that this strategy is continuing to develop as planned.
Starting from a base in the STOR market in 2011 we have expanded
operations into winter running and now DSBR. All of this will be
serviced from our existing engine capacity which can be swiftly
deployed to respond to a range of market demands."
For more information please contact:
Alkane Energy plc
Neil O'Brien, Chief Executive
Officer
Steve Goalby, Finance Director 01623 827927
Liberum Capital Limited
Clayton Bush
Tim Graham 020 3100 2000
VSA Capital Limited
Andrew Raca 020 3005 5004
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 recently announced acquisition
of three power response sites from Carron Energy Limited and Dragon
Generation Limited, Alkane has a total installed generating
capacity of 140MW and an electricity grid capacity of 160MW.
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 93MW of power response, one of the UK's largest
power response businesses, with contracted revenues extending out
to 2025.
The Group operates from 27 mid-size (up to 25MW) power plants
across the UK, 15 CMM only, 8 mains gas only, 3 using both fuel
sources and 1 using kerosene only. 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 transferred in June 2014 its shale gas interests to Egdon
Resources plc. Alkane received 40m Egdon shares making us the
largest shareholder in Egdon, a significant player within the UK
shale industry.
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 circa 800km(2) of acreage under various onshore
Petroleum Exploration and Development Licences ("PEDLs").
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
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