This marks the Company's transition to an operator of renewable energy assets from a pure development company.
The electricity generated by the Newry Biomass Plant is being sold to Bord Gais Eireann under a Power Purchase Agreement. The Company now intends to move towards the completion of the next 2MW phase of the project, which is expected to come online in Q4 2013. The civil and on-site works for this additional 2MW have already been completed and a deposit has been paid to secure the expansion of the grid infrastructure for the project.
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Once fully operational, the plant will employ up to 12 people and be able to provide clean electricity to over 7,000 homes.
The Company's plant at Newry is the first in its pipeline to commence exporting power to the electricity grid. Kedco's other key asset is the 12MW Enfield Biomass Project located in Enfield, London. This project has full planning and permits to convert 60,000 tonnes per annum of waste wood and has entered into advanced discussions on an offer to connect to the national grid. The Company has already entered into a 20-year lease in relation to the site.
The Directors believe that this project in Enfield is one of the most advanced biomass development projects located in the London region. The Company intends to progress the project towards financial close and commencement of construction.
Gerry Madden, CEO of Kedco, commented: "This step marks the Company's move from being solely a clean energy project developer to a clean energy producer. The Board is delighted with the progress made at the site, and is pleased to be generating revenue from the plant, as this significant step in the Company’s development will provide Kedco with good visibility of earnings. Biomass electricity and heat producing technologies are among the most incentivised in the UK, and this support further underpins Kedco’s business model."
(CD)
