REH.L Regulatory News (REH)

15 May 2006 07:00

Renewable Energy Holdings plc15 May 2006 For immediate release Stock Exchange Announcement 12th May 2006 Renewable Energy Holdings plc Trading update Renewable Energy Holdings plc ("REH" or the "Company"), the AIM listed investorand operator of proven and innovative renewable energy technologies, today madethe following statement regarding current trading: Germany Wind-Farm Project In Germany, the Company's 27.9MW Kesfeld wind farm has reached the stage of 'Substantial Completion', marking the successful build out of Stage 1. TheCompany and enXco, its developer, are currently in discussion with the intentionof increasing total capacity to 60MW. With Stage 1 complete and operatingrevenues currently being received, the Board believes it is now in a position toincrease the Kesfeld project's debt gearing to 80%, which could liberate aportion of the Company's original equity investment. Welsh Landfill Gas Project In Wales, the Company has completed the acquisition of its Landfill Gas Project,which positions the Company as a ROC trader. Prior to completion of the acquisition, the Company purchased the shares held byPurePower Egni Limited ("PPE") in REH Wales, making the Company the one hundredper cent (100%) owner of REH Wales. The methane extraction from this projectcurrently equates to 1MW of green electricity and this is expected to increaseas the landfill grows in size and maturity. NEL Power Limited will provide dayto day management of the landfill gas power generation facility pursuant to anasset management agreement. It is the intention of the Consensus Business Group, to co-invest with REH inthis project, along the lines of the previously announced collaborationagreement. Hungary Wind-Farm project The Company's allocation of capacity in Hungary has been reduced from 45MW to23MW as a result of the general reduction of all wind-farm applications by theHungarian Government. The Board expects that completion of this project willnow be delayed by approximately six months to June 2007, but there should be acorresponding reduction of circa fifty per cent (50%) in the previouslyannounced required equity investment of £8 million. The unutilised £4 millionwill now be deployed by REH into other potential Wind, Waste-to-Energy andBiomass opportunities. The Group has developed a significant pipeline of potential projects foracquisition or development and the Board of REH have identified furtherattractive prospects in Eastern Europe. -End- For further information, please contact: Renewable Energy Holdings plc Parkgreen Communications Nabarro Wells & Co. LimitedMike Proffitt, Chief Executive Paul McManus Richard SwindellsTel: 01624 641 199 Tel: 020 7786 9600 Tel: 020 7710 7400 Mob: 07980 541 893 This information is provided by RNS The company news service from the London Stock Exchange