Nice Rns...22 Oct 2013 16:12
22 October 2013
Helius Energy plc
("Helius" or the "Company")
Avonmouth biomass plant named as 'prequalified' for the UK Guarantees Scheme
Helius Energy plc ("Helius") is pleased to announce that its 100MW(e) capacity biomass energy facility in Avonmouth dock near Bristol, has been named by HM Treasury as 'prequalified' and eligible for support under the UK Guarantees Scheme. The scheme provides a government-backed loan guarantee for a significant portion of the project's debt to help infrastructure projects access finance. The project was consented under S36 of the Electricity Act 1989 in June 2010 and has deemed planning.
The Avonmouth project was named 'prequalified' after consideration by HM Treasury officials regarding the financial credibility, shovel readiness, significance and value for money for the taxpayer of the project. The provision of a guarantee for the project would follow the successful completion of due diligence, which is expected to progress in parallel to, and within the timetable of, the due diligence by our lenders and project equity.
Discussions with equity partners are progressing well and the 'prequalification' of the project for the UK Guarantees Scheme provides potential investors with further confirmation of the Government's support for the project. This support is useful in securing the necessary finance before the end of the first quarter of 2014.
The Company is seeking to secure a development fee in respect of the Avonmouth Project and to retain an ongoing interest in the project by way of a 'free carry' of equity by the Company and/or a long-term ongoing royalty from the project. It is anticipated that the Company will provide management services to the Avonmouth Project during both the construction period and when the plant is operational, and will receive a separate fee for those services.
Once operational the project will provide renewable, low carbon electricity as part of the UK's aim to reduce carbon emissions and combat climate change. The project will cost around GBP300m to construct and will create approximately 450 full time jobs during the construction phase. Once in operation, it will generate 40 new full-time long-term operations jobs.
Commenting, Dr Adrian Bowles, Chief Executive Officer said:
"The prequalification of our Avonmouth project for the UK Guarantees Scheme is a strong endorsement of the quality of the project and reflects its advanced stage. We believe that we have access to about 60% of the project financed by long-term debt, which should help close the equity for the balance. Suppliers, contractors and off-takers are all in place or have been identified and discussions with potential equity partners are also moving forward. Our focus continues to be on finalising the financing of the project and this further show of support, from the Government, provides confidence in achieving this goal."
For more information ple
Sign In
Follow the stocks
