Helius Energy Plc Avonmouth 'prequalified' for UK Guarantees Scheme (1234R)
23 October 2013 - 1:03AM
UK Regulatory
TIDMHEGY
RNS Number : 1234R
Helius Energy Plc
22 October 2013
22 October 2013
Helius Energy plc
("Helius" or the "Company")
Avonmouth biomass plant named as 'prequalified' for the UK
Guarantees Scheme
Helius Energy plc ("Helius") is pleased to announce that its
100MW(e) capacity biomass energy facility in Avonmouth dock near
Bristol, has been named by HM Treasury as 'prequalified' and
eligible for support under the UK Guarantees Scheme. The scheme
provides a government-backed loan guarantee for a significant
portion of the project's debt to help infrastructure projects
access finance. The project was consented under S36 of the
Electricity Act 1989 in June 2010 and has deemed planning.
The Avonmouth project was named 'prequalified' after
consideration by HM Treasury officials regarding the financial
credibility, shovel readiness, significance and value for money for
the taxpayer of the project. The provision of a guarantee for the
project would follow the successful completion of due diligence,
which is expected to progress in parallel to, and within the
timetable of, the due diligence by our lenders and project
equity.
Discussions with equity partners are progressing well and the
'prequalification' of the project for the UK Guarantees Scheme
provides potential investors with further confirmation of the
Government's support for the project. This support is useful in
securing the necessary finance before the end of the first quarter
of 2014.
The Company is seeking to secure a development fee in respect of
the Avonmouth Project and to retain an ongoing interest in the
project by way of a 'free carry' of equity by the Company and/or a
long-term ongoing royalty from the project. It is anticipated that
the Company will provide management services to the Avonmouth
Project during both the construction period and when the plant is
operational, and will receive a separate fee for those
services.
Once operational the project will provide renewable, low carbon
electricity as part of the UK's aim to reduce carbon emissions and
combat climate change. The project will cost around GBP300m to
construct and will create approximately 450 full time jobs during
the construction phase. Once in operation, it will generate 40 new
full-time long-term operations jobs.
Commenting, Dr Adrian Bowles, Chief Executive Officer said:
"The prequalification of our Avonmouth project for the UK
Guarantees Scheme is a strong endorsement of the quality of the
project and reflects its advanced stage. We believe that we have
access to about 60% of the project financed by long-term debt,
which should help close the equity for the balance. Suppliers,
contractors and off-takers are all in place or have been identified
and discussions with potential equity partners are also moving
forward. Our focus continues to be on finalising the financing of
the project and this further show of support, from the Government,
provides confidence in achieving this goal."
For more information please contact:
Helius Energy plc Tel: +44 (0) 20 7723 6272
Adrian Bowles, Chief Executive Officer
Alan Lyons, Chief Financial Officer
Numis Securities Limited
Jamie Lillywhite (as Nominated Adviser) Tel: +44 (0) 20 7260 1000
James Black (as Corporate Broker)
Citigate Dewe Rogerson Tel: +44 (0) 20 7638 9571
Chris Gardner
Malcolm Robertson
Notes to Editors
About Helius Energy plc
Helius was established to identify, develop, own and operate
biomass fired renewable electricity generation plants. These will
help meet the growing need for reliable power from renewable
sources.
Helius possesses a significant combination of knowledge of
renewable energy markets, biomass energy technologies, biomass fuel
sources, project development, implementation and operation of power
generation plants.
In 2012 Helius successfully completed the construction of a
biomass energy plant in Rothes, Speyside, Scotland. The Helius
CoRDe Limited ("CoRDe") plant began commercial operation in July
2013 and uses by-products from nearby malt whisky distilleries to
produce renewable energy and liquid animal feed product (Pot Ale
Syrup). Helius is also developing a proposed 100 MW dedicated
biomass energy generating plant at Avonmouth in the Port of Bristol
and is bringing forward a similar scale scheme in Southampton.
For further company information see www.heliusenergy.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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