Bio-fuels Joint Venture

9 Mar 2006 08:30

KP Renewables PLC09 March 2006 Press Release 9 March 2006 KP Renewables Enters Project Development Agreement with Living Buildings Ltd for up to 15MW Per Year of Small Bio-based Power Projects KP Renewables plc ("KPR"), the AIM-quoted renewable energy project developer,announces today that it has entered into a Project Development Agreement withLiving Buildings Limited ("Living Buildings") to develop up to 15MW per year ofsmall bio-fuel based power projects on industrial sites. The first project is based in Nottinghamshire, and will produce 1.2MWe. Thefirst stage of this project is already operational on a trial basis, producingpower for the project customer's own use on site. Full commercial operation ofthis initial project is expected by May 2006. Four to six additional projectsare expected to become operational later this year. The projects will be ownedand operated by a Joint Venture Company, in which KPR and Living Buildings willown equal shares. This new Joint Venture Company will focus on the development of small renewableenergy projects in energy-efficient applications, using bio-fuels inreciprocating engines to provide power for industrial applications. Dr James Watkins, CEO of KPR said, "We are delighted to be working with LivingBuildings in this initial project, which is another validation of our strategyof consolidating small renewable projects. We greatly appreciate the way inwhich Living Buildings has identified and pursued these small scale projectopportunities and we look forward to working with them to develop similarprojects throughout the UK" Adrian Venni, Managing Director of Living Buildings, adds; "We believe thatco-operation with KPR will provide us with financial, commercial and technicalsupport for the national development of our innovative, localised projects. Welook forward to a long and fruitful period of co-operation with KPR." - ENDS - For further information please contact: KP Renewables plc Dr James Watkins, CEO Tel: +44 (0) 20 8231 8820drjwatkins@kprenewables.com Robert Smyth, Finance Directorrsmyth@kprenewables.com www.kprenewables.com Living Buildings Ltd Adrian Venni, MD Tel: +44 (0) 1449 737681avenni@living-buildings.co.uk www.living-buildings.co.uk Media enquiries: Abchurch Martin Sutton / Gareth Mead Tel: +44 (0) 20 7398 7700martin.sutton@abchurch-group.com www.abchurch-group.com Notes to Editors KP Renewables plc KP Renewables plc was established to be the leading independent renewable energycompany in the UK. The Company has already agreed framework Power PurchaseAgreements to sell long term renewable energy on pre-agreed terms to a number ofUK electricity retailers. This energy will be based on a mix of biomass and "Carbon Recycling" projects along with wind and wave projects which qualify forRenewable Obligation Certificates ("ROC"s). Electricity retailers have an obligation to source an increasing percentage oftheir supplies from renewable energy (10.4% by 2010). Failure to meet thesetargets will result in ROC buy-out penalties. The framework agreements aredesigned to help these companies reach their renewable energy obligations. The agreements, and the Company's project financing capabilities, willparticularly help small to mid-sized renewable energy developers whose outputcan be aggregated. The Company was listed on the AIM market of the London Stock Exchange in July2005 under the symbol KPR and is also quoted on the Frankfurt, Munich and BerlinStock Exchanges under the symbol K1P. It has recently signed an agreement withMarathon Capital Partners LLC of Chicago to arrange substantial financing forinvestment in renewable projects. Living Buildings Ltd Living Buildings Limited is a privately owned company, established in Septemberof 2005 to exploit the commercial opportunities presented by increasedenvironmental awareness and increasing energy costs. Living Buildings is focused on the delivery of decentralised renewable energyprojects that deliver both environmental and commercial gains to customers. Given the prevailing business climate, Living Buildings expects increasing andsustainable demand for its services. This information is provided by RNS The company news service from the London Stock Exchange