31 Jul 2012 07:00
FOR IMMEDIATE RELEASE | 31 July 2012 |
InfraStrata plc
("InfraStrata" or the "Company")
Salt Production at Portland
InfraStrata plc (AIM:INFA), the independent gas storage and petroleum exploration company, is pleased to provide an update on its plans at Portland on the south coast of the UK.
On 6 June 2012 the Company announced that an agreement had been reached with Portland Port Limited to modify the existing leases at its substantial Portland site. These modifications include permission for a wider range of uses of the land, such as the generation and export of electricity, carbon capture & storage, and salt production. The Company has been reviewing a range of options which build on synergies with the Port, together with, the engineering, environmental and consenting work undertaken to date.
The unique combination of thick Triassic salt strata present below the Portland area, and access to Port facilities, provides an attractive opportunity to establish the production and export of salt as an initial business.
The Company plans to construct salt cavern creation infrastructure and to monetise salt extracted from the brine produced by solution mining. A typical production plant could be capable of processing one million tonnes of salt per annum at Portland. Current UK salt production is approximately six million tonnes, primarily from Triassic salt sequences in Cheshire and Northern Ireland. The salt would be available from Portland Port to UK and International markets.
The Company is evaluating the use of biomass boilers to provide the heat necessary to evaporate the water from the brine. Biomass is a renewable, low carbon fuel and could be imported through Portland Port and the Government is offering incentives to use biomass through the new Renewable Heat Incentive.
Commenting on the salt production opportunity at Portland, Andrew Hindle, CEO of InfraStrata plc said:
"In the light of the overall potential at Portland, a salt production project would bring forward infrastructure investment and mark an important step for the Company.
Building on the considerable work undertaken by the team over a number of years on evaluating the salt sequence and designing cavern creation facilities at Portland, the Company anticipates securing the necessary funding at the project level this autumn to undertake engineering work to optimise the design and sizing of the project as well as obtaining the necessary project consents. We will then be in a position to move to construction as soon as possible."
For further information please contact:
InfraStrata plc | 020 8332 1200 |
Andrew Hindle, Chief Executive Officer | |
Craig Gouws, Chief Financial Officer
| |
Financial PR - Buchanan | 020 7466 5000 |
Richard Darby/Gabriella Clinkard
| |
Nominated Advisor and Broker - Seymour Pierce | 020 7107 8000 |
Jonathan Wright - Corporate Finance | |
Richard Redmayne - Corporate Broking |
Notes to Editors:
Background on InfraStrata plc
InfraStrata is an independent gas storage and petroleum exploration company. The Company is focused on two areas in the UK, in Dorset, England and Antrim, Northern Ireland.
Background on Portland Project
Planning permission was granted by Dorset County Council in May 2008 for a 1000 million cubic metre gas storage facility. The planning permission for the project also includes the construction of salt cavern creation facilities, and gas-fired power generation capacity, together with permission to construct a 36inch gas pipeline to connect to the National Transmission System at Mappowder in North Dorset.
Further information is available on the Company's website www.infrastrata.co.uk.
In accordance with the AIM Rules - Note for Mining and Oil and Gas Companies, the information contained in this announcement has been reviewed and signed off by the Chief Executive Officer of InfraStrata plc Dr Andrew Hindle, a Chartered Geologist with over 25 years' experience.