KED14 Mar 2011 07:25
Donal Buckley, Chief Executive of Kedco, commented:
"The Company has made significant progress, in particular from the benefits of the planned expansion of the operations in Latvia. With the equity funding that we have raised and the loan facilities from an existing shareholder and a tier one bank, the Company is in a strong position to complete the installation of its first commercial waste to energy plant in Newry and to start the preparatory work on the facility in Enfield, North London. The successful raising of finance from a number of sources this year highlights the boards belief that Kedco remains well placed to benefit from the increasing levels of public incentives that are driving the Biomass sector.
We are a development company and our strategy remains to build, own and operate biomass power generating plants. The current pipeline of identified projects remains very strong and the Company will continue to focus its efforts on sourcing the finance necessary to realise these opportunities.
The Directors believe that economic conditions are improving but the tight credit markets could continue to have an impact on the availability of finance. We have continued to raise finance successfully during the period and we expect to continue to be successful in the coming period.
The outlook for 2011, whilst still challenging, is arguably more positive than for 2010. A positive legislative environment is essential to the success of a waste to energy business and the financial incentive 20 year programme launched recently by UK Energy Secretary, Chris Huhne has the potential to benefit a number oftheprojects that Kedco is developing.
In the board's view, policy support for Renewable Energy remains strong. We believe that the launch in the UK of the Renewable Heat Incentive in May 2011 and the expected legislation in Northern Ireland this month for up to 4 ROC's for certain AD projects can add significant value to our biomass electricity and heat generating projects."