Grant for Wave Energy JV

14 Mar 2006 07:01

KP Renewables PLC14 March 2006 Press Release 14 March 2006 Confirmation of Grant for Wave Energy Project KP Renewables plc, the AIM-quoted UK aggregator, investor, and developer ofindependent green energy projects, announces today that the Wave Power StationProject, previously announced on 14 December 2005, has received the formal awardletter for the £5m "Objective 1" grant from the Welsh European Funding Office. The project is to be developed in conjunction with Wave Dragon Limited, a waveenergy technology company. It involves the two stage development, financing,construction and operation of up to 77MW of wave energy projects in Wales. Thegrant will be applied to the first stage of development, comprising thedeployment of a 7MW Wave Dragon unit off the coast of West Wales, near MilfordHaven. The unit is projected to provide sufficient electricity to power up to6,000 homes. - ENDS - For further information please contact: KP Renewables plcDr James Watkins, CEO Tel: +44 20 8231 8820drjwatkins@kprenewables.com Robert Smyth, Finance Directorrsmyth@kprenewables.com www.kprenewables.com Media enquiries: AbchurchGareth Mead / Martin Sutton Tel: +44 (0) 207 398 7700 gareth.mead@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 ("PPA"s) to sell long term renewable energy on pre-agreed terms to anumber of UK electricity retailers. This energy will be based on a mix ofbiomass and "Carbon Recycling" projects along with wind and wave projects thatqualify for Renewable 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 Company believes that the PPAs and the Company's project financingcapabilities will particularly help small to mid-sized renewable energydevelopers whose output can 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 facilitate further financing forinvestment in renewable projects. Wave Dragon Ltd Erik Friis-Madsen designed the patented Wave Dragon device in 1994. Wave Dragonis a world leader in wave energy technology, harnessing extensive industrialexpertise and cutting-edge scientific knowledge. Wave Dragon Limited is the newholding company set up to handle the UK roll-out of the technology developed byWave Dragon ApS. Wave Dragon Wales Limited is the Special Purpose Vehicleincorporated to operate this project and is the body that submitted the fundingapplication to WEFO. Through a strong management team, led by Hans Christian Sorensen, the Companyhas successfully evolved Wave Dragon into a world leading renewables technology.Since 1997 more than 14 academic and industrial partners from 6 Europeancountries have collaborated in the research and development of Wave Dragon.Total investments to date stand at around £7m. A Wave Dragon unit is an offshore floating device that works by channellingwaves into a reservoir which is above sea level. The water is then releasedthrough a number of turbines and generates electricity in the same way as hydropower plants. The technology has been developed and tested over the past eightyears in tanks in Denmark and Ireland. The Danish prototype is believed to bethe first offshore device in the world to deliver power to a nationalelectricity grid. This information is provided by RNS The company news service from the London Stock Exchange