REH.L Regulatory News (REH)

1 Dec 2008 07:00



1 December 2008

Renewable Energy Holdings plc

("REH" or "the Company")

Polish Wind Farm Agreement

Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor and operator of proven and innovative renewable energy technologies, is pleased to announce that it has entered into a conditional sale and purchase agreement ("SPA") with Gamar GHL ("the Vendors") to develop a wind farm site in Kobylany,Poland. 

Under the terms of the SPA, REH has paid €100,000 in cash for the grant of an option to purchase theVendors and will pay a further €2.0 million, to be satisfied as to €2.0 million in cash upon the Vendors obtaining all required planning, construction and operating permits for the wind farm site.  REH is able to terminate the SPA at its sole discretion if the Vendors do not fulfil their obligations by 30 June 2009, subject to extension by mutual agreement, or if it is not able to obtain suitable financing. The Board of REH intends to apply part of its existing loan facility with Standard Chartered Bank to the construction and development of this wind farm site.

The Board believes that the wind farm site at Kobylany, a mountainous region in South East Poland, is capable of providing up to 30MW of generating capacity and an independent wind study has indicated a net capacity factor of 32% for this site.  This capacity factor compares well against the European average of 26-30%.

Mike Proffitt, Chief Executive Officer of REH, commented: "We are delighted to be signing this Agreement as, along with our recently announced 70MW Wales project, it consolidates our plan to have 150MW of wind power within five years of our entry onto the AIM. Our independent wind assessment has yielded very favourable results and we look forward to a strong performance from this asset."

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Notes to Editors 

About Renewable Energy Holdings plc 

Renewable Energy Holdings ("REH") is an international company established to be an investor in and operator of both proven and innovative renewable energy technologies. 

REH owns two operational wind farm sites in Germany, Kesfeld (32.5MW) and Kirf (8MW). In addition, REH is at various stages of development of further wind farm sites in Poland and Wales. 

REH owns a methane Landfill Gas Project in Powys, Wales which is at an early stage of gas collection, currently producing at 1MW and which is expected to increase as the landfill matures. 

CETO is REH's innovative wave power technology. It is the first wave power converter to sit on the seabed, where it is invisible, safe from storms and ocean forces, and self contained. Unlike other wave energy technologies that require undersea grids and costly marine qualified plant, CETO requires only a small diameter pipe to carry high pressure seawater ashore to either a turbine to produce electricity, or to a reverse osmosis filter to produce fresh water. CETO is currently deployed off Fremantle, Western Australia undergoing commercial testing. 

The Directors and executive team of REH have extensive experience in both the conventional and renewable energy sectors, both in the UK and overseas, and through their experience have built a broad international network of relationships with individuals, companies, governments and lobby groups. 

The Company was incorporated in the Isle of Man on 8 October 2004 and listed on the London Stock Exchange's AIM in February 2005. 

Further information can be found at www.reh-plc.com.