Last checked at 5 Jul 2011 07:00
5 July 2011
Northern Bear PLC
("Northern Bear" or the "Company")
Solar Power Installation Contract
Northern Bear plc is pleased to announce that its wholly owned subsidiary, Northern Bear (Renewables) Limited ("NBR") entered into agreements (the "Agreements") with RGE Energy UK Limited ("RGE") and St Columb Solar Limited, a company controlled by Hazel Capital LLP, ("Hazel") relating to the provision of photovoltaic solar panel solutions ("Solar PV") to both the UK domestic and commercial markets.
RGE is the UK subsidiary of Deutsche Eco AG, a worldwide operating solar company. Services of the Deutsche Eco group of companies include the planning, construction, financing and operation of solar power plants on leased rooftops and land.
Hazel is an independent London-based specialist investment manager, investing exclusively in those clean-tech sectors that work to overcome global resource and energy constraints and achieve a sustainable environment.
The Agreements will see the three organisations take a vertically integrated approach to Solar PV system financing, supply and installation. Under the terms of the Agreements, Hazel will, subject only to there being no material reduction in Feed In Tariffs payable, purchase up to £10 million of Solar PV systems from RGE over a three year period. Feed In Tariffs are reviewed annually on 1 April by the Department of Energy and Climate Change.
Under the terms of the Agreements, NBR will act as the exclusive installer of the Solar PV modules on sites to be identified by Northern Bear and which meet Hazel's pre-determined site qualification criteria. The arrangements will enable the group to draw upon the resources and expertise of the four roofing businesses within the Northern Bear group and its existing customers in the North of England in respect of installation projects.
Under the terms of the Agreements and at the prices set, the £10 million of funding is forecast to provide sufficient capital to fit Solar PV systems to approximately 1,500 domestic properties.
The Agreements contain certain commercially driven termination provisions, which the board of directors of Northern Bear (the "Board") consider to be conventional to a contract of this type. In addition, Hazel may terminate the Agreements should Mr Graham Forrest cease to be employed by the Company. Hazel have advised the Board that this provision reflects Mr Forrest's extensive involvement in the negotiations leading up to the Agreements and his knowledge of the sector. The Board has noted both Mr Forrest's long term commitment to the Company and his terms of employment in agreeing to the inclusion of this provision.
Northern Bear Plc Chief Executive, Graham Forrest said: "We are confident that our Agreements with RGE Energy and Hazel Capital will be of significant benefit to the group, both in opening up new markets and enabling us to provide additional products to our existing customers. We have already received positive feedback from a number of our customers regarding the offer of fully paid for and maintained PV systems."
**ENDS**
For further information contact:
Northern Bear Plc
Graham Forrest - Chief Executive Officer +44 (0) 19 1414 5486
Strand Hanson Ltd
James Harris / James Spinney/ Rory Chichester +44 (0) 20 7409 3494
Seymour Pierce Ltd
Katie Ratner / Paul Jewell / David Banks +44 (0) 20 7107 8000