REH.L Regulatory News (REH)

21 Jul 2006 07:00

Renewable Energy Holdings plc21 July 2006 21 July 2006 Renewable Energy Holdings plc ("REH" or the "Company") Trading update The Board of Directors of REH ("Board"), the AIM quoted investor and operator ofproven and innovative renewable energy technologies, is today pleased to makethe following trading update statement. The Board expects to announce theCompany's preliminary results for the year ended 30 June 2006 on or around 15September 2006. Overview The Board is pleased with REH's progress since its admission to AIM on 11February 2005. During this time, the Company has invested £26 million in windand methane projects generating 27.9MW and 1MW respectively. The existingpotential generating capacity at the Kesfeld wind-farm project is operatingahead of the Board's expectations and engineering improvements at the WalesLandfill Gas project are expected to increase yield with little marginal cost. REH has available to it a significant pipeline of potential projects foracquisition and/or development. Germany Wind-Farm Project As announced on 12 May 2006, the Kesfeld wind-farm reached "substantialcompletion" on Stage 1. The build out of the first 27.9MW has since reached "final completion" with operating revenues being received. The Board is pleasedto report that the five Siemens 2.3MW MkII turbines that were installed as partof Stage 1 have been operating ahead of the performance curve indicated bySiemens, reaching a maximum output at lower wind speeds than had originally beenenvisaged. Planning for Stage 2 of the Kesfeld project continues with the Company'sdeveloper, enXco. It is envisaged that six 2MW turbines will be sourced fromREpower Systems AG. As a result of the change of turbine configuration thefully developed wind-farm has been increased from 41.7MW to 44.5MW. With Stage 1 now fully complete, the Board will seek to refinance the Kesfeldproject with a view to increasing gearing and therefore releasing some of theCompany's original equity investment. Welsh Landfill Gas Project The Company announced on 12 May 2006 that it had purchased the interest that itdid not previously own in REH Wales making it the sole owner of the 1MW methaneLandfill Gas Project. The Company is receiving operating revenues from thismethane project and it is currently engaged in an engineering improvementexercise. This improvement should allow for a more efficient gas collectionleading to a resultant increase in revenues from this asset with littleassociated marginal cost. Hungary Wind-Farm Project As previously announced, the Hungary Wind-Farm Project is encountering delaysand a reduction in capacity available for the Company. This has reduced theequity funding that the Company must set aside for this project and so increasesfunds available for deployment into other opportunities. Collaboration and new projects The Board is in discussions with Carnegie Investments, one of the Company'soriginal vendor shareholders, with the intention of agreeing a collaborationagreement pursuant to which Carnegie and REH would invest in renewable projectson a joint basis. The Board believes that such an agreement would provide theCompany with an additional funding partner which would further increase REH'sability to secure new projects. REH continues to grow its pipeline of potential acquisitions and/or developmentopportunities in renewable projects. The Board believes that the economic and social fundamentals that create theinvestment environment for renewable energy sources are now more compelling thanat any time since REH's admission to AIM. Enquiries: Renewable Energy Holdings plc Parkgreen Communications Nabarro Wells & Co. LimtedMike Proffitt, Chief Executive Paul McManus Richard Swindells01624 641199 020 7493 3713 020 7710 7400 07980 541 893 This information is provided by RNS The company news service from the London Stock Exchange