Renewable Energy Generation Ltd
13 June 2007
13 June 2007
Renewable Energy Generation Ltd ("REG" or "the Company")
Operational Progress
Renewable Energy Generation (AIM: RWE), the developer of renewable energy
projects, 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 capacity
procured from Vestas in Canada, Poland and the UK. The latest project, at
Roskrow 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 government
commitments to renewable energy. We are also enthusiastic about prospects for
our biomass business where recently reinforced UK Government support for the
industry is very welcome.
Over the past two years REG has secured development portfolios in the UK and
Canada with the potential for more than 2000MW. We are well placed to build and
operate this portfolio whilst exploring opportunities in other developed
technologies such as biomass."
Ontario SOP programme
REG has signed turbine supply and associated service and warranty agreements
with Vestas Canada to supply eighteen V82-1.65MW turbines totalling 29.7MW with
delivery expected to commence in Autumn 2008. The total project cost including
landowner payments, electrical interconnection, civil engineering and turbines
will be approximately £33m.
The turbines will be deployed on three 9.9MW projects being developed by REG's
Canadian subsidiary, APG, under the SOP Programme in Ontario. These projects are
additional to the four projects announced in December and will mean REG has
seven SOP projects under construction in Canada over the next eighteen months.
These projects total 69.3MW and are being constructed at a total cost of
approximately £73m.
On-site construction on the first four SOP projects will start in the next few
weeks with turbine delivery commencing in October this year. APG is working on
additional SOP projects in Ontario.
UK operational update
In the UK, REG's operating subsidiary, CLP, has procured turbines for the
Roskrow Barton project in Cornwall, UK. This is a two turbine project, with an
installed capacity of 1.7MW.
The site has an excellent wind resource, and will contribute significantly
towards Cornwall's Renewable Energy targets. CLP selected Vestas V52 turbines
as they have an outstanding track record worldwide and are well suited to such
high wind sites. Turbine delivery is on fast-track for December 2007.
UK biomass
CLP welcomes the further encouragement in highly efficient biomass, featured in
the UK government's recent White Paper on Energy. Highly efficient small scale
biomass projects are recommended to be eligible for 'double Renewable Obligation
Certificates". This improves the economics considerably, and CLP is pleased that
its 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 this
emerging segment and believes that considerable value will be created over the
coming years as a result of the UK government's increased support.
Further information
Renewable Energy Generation
Andrew Whalley (01483) 400 425
Bell Pottinger Corporate & Financial
Nick Lambert / Amy Rajendran / Antonia Coad (020) 7861-3232
This information is provided by RNS
The company news service from the London Stock Exchange