REAC.L Share News (REAC)

(ShareCast News) - Renewable energy developer React Energy announced on Tuesday that planning permission had been granted by the Derbyshire County Council for the construction and operation of an energy recovery facility at Clay Cross.The AIM-traded company held a 90% interest in the facility's owner, Clay Cross Biomass Ltd.It anticipated Clay Cross will use EQTEC Integrated Biomass Gasification Technology - the same technology that the company is installing at its Newry biomass gasification project in Northern Ireland, to power the plant as part of an engineer, procure and construct (EPC) contract for the construction of the facility.Once commissioned, the site is expected to convert around 80,000 tonnes of construction and demolition waste wood each year to generate up to 12MW of energy - sufficient to power 18,000 homes - and up to 14MW of thermal energy each year.That waste would be diverted from landfill, React Energy's board confirmed."The company is currently in discussions to secure finance for the construction of the facility, and estimates that it will take approximately 18 months from obtaining finance to the final commissioning of the plant," it added.React Energy's share price dropped sharply on the news, but remained relatively stable through much of the afternoon. At 1600 BST it was down 17.94% at 6.36p.