11 Feb 2016 13:37
Plutus PowerGen Plc / Ticker: PPG / Index: AIM
11 February 2016
Plutus PowerGen plc ('PPG' or 'the Company')
PPG to become a renewable power generator following MOU with Green Biofuels
Plutus PowerGen plc, the AIM listed power company focused on the development, construction and operation of flexible stand-by electricity generation in the UK, is pleased to announce that it has signed a memorandum of understanding ("MOU") with UK based Green Biofuels Limited ('Green Biofuels') for the supply of its proprietary renewable fuel 'Green D+' for use across the Company's power generation projects. With the utilisation of a pure green vegetable oil based fuel, PPG will become a low carbon renewable power generator.
PPG currently has management contracts for the construction and operation of nine 20MW flexible stand-by electricity plants in the UK. Although the sites operate on a stand by basis and are not anticipated to be utilised for more than 200 hours per annum, this strategic decision to team up with Green Biofuels is another major step forward in the development of the Company and underpins the Board's commitment to the environment in tandem with alleviating the UK's ever increasing power deficit issues.
Green Biofuels Ltd has an agreement with Neste Corporation, the leading global supplier of renewable diesel, to sell and distribute Green D+ in the UK.
Green D+ is a biofuel formulated by adding a nano-technology patented performance additive to Hydrogenated Vegetable Oil ("HVO") and has been independently proven to burn cleaner than other diesels, greatly lower emissions and greenhouse gasses all whilst remaining as efficient as diesel. The fuel is made from HVO's including the easily accessible rapeseed, soybean, waste fish, jatropha and carmelina oils and contains no aromatics or sulphur, meaning it burns cleaner than other diesels and produces zero Sulphur Oxide ("SOx") emissions as well as significantly lower levels of Nitrogen Oxide ("NOx") and particulate emissions.
Green D+ meets engine manufacturer warranties and is widely used around the world, including the US where in California the fuel is now available at roadside services for use in domestic vehicles and is fully endorsed by the California Air Resources Board (CARB) and the US Department and Energy.
Paul Lazarevic, COO of PPG said, "We have been looking for a renewable fuel partner for some time and this strategic deal complements our corporate environmental objectives, by providing us with renewable energy capabilities. Green D+ delivers highly significant environmental benefits without a reduction in engine efficiency. The use of Green D+ across our power generation projects will underpin our environmental credentials and open us to renewable investors, as we look to roll-out our existing flexible stand-by power generation sites across the UK to address the ever more evident constrained supply dynamics facing the energy sector."
For more information on Green D+ please visit www.greendplus.com.
**ENDS**
For further information, please visit www.plutuspowergen.com, or contact:
Charles Tatnall | Plutus PowerGen Plc | Tel: +44 (0) 20 3705 8350 |
Phil Stephens | Plutus PowerGen Plc | Tel: +44 (0) 20 3705 8352 |
Ewan Leggat | SP Angel Corporate Finance LLP | Tel: +44 (0) 20 3470 0470 |
Laura Harrison | SP Angel Corporate Finance LLP | Tel: +44 (0) 20 3470 0470 |
Elisabeth Cowell | St Brides Partners Ltd | Tel: +44 (0) 20 7236 1177 |
Hugo de Salis | St Brides Partners Ltd | Tel: +44 (0) 20 7236 1177 |
Notes to Editors
Plutus PowerGen plc is an AIM listed company focused on the development, construction and operation of flexible stand-by power generation sites in the UK. At present, the market dynamics for flexible power generation are positive as a result of the continued downward pressure on capacity available to National Grid to balance supply and demand, leading to their announcements about possible power shortages over the next few years.
Flexible Power generators such as PPG offer a viable and timely solution to the power capacity shortfall in the UK. To this end, PPG is initially focusing on delivering 200MW of capacity by the end of 2017 and currently has a project pipeline of potential development sites with 700MW of power generation capacity.
PPG has a straightforward multi-revenue stream model with large and stable counter-parties and is using project/EIS funding through SPVs to finance construction of the generation assets. This structure has the benefit of limiting dilution to plc shareholders as the assets are financed and built.