26 September 2008
Helius Energy plc
Helius Energy Plc - RWE Innogy to acquire Helius Energy Proj
RNS Number : 3886E
Helius Energy Plc
26 September 2008
26 September 2008
RWE Innogy to acquire biomass to power
project from Helius Energy
Biomass-to-power company Helius Energy Plc ("Helius Energy" or the "Company") is pleased to announce the sale of its
Stallingborough renewable power project to RWE Innogy UK (RWE Innogy), a wholly owned subsidiary of RWE AG.
Under the terms of the agreement, RWE Innogy will acquire 100% of Helius Energy Alpha Ltd ("Helius Alpha"), a wholly
owned subsidiary of Helius Energy, which owns the rights for the development and operation of a gross capacity 73MWe
(65MWe declared net capacity) renewable electricity plant at Stallingborough in North East Lincolnshire. The total
amount payable under the transaction documents is 28.14 million.
Of this, 22.5 million is payable immediately on completion and a 1.4 million 5% retention is payable 12 months
following completion (assuming no valid warranty claims in this period). A future amount of 0.24 million pursuant to an
acquisition of land agreement is also payable. In addition, RWE Innogy has also funded Helius Alpha as to 4 million
and procured that Helius Alpha will use those funds to clear intercompany loans with Helius Energy. The Company expects
that the profits on disposal will be 20 million.
In addition, Helius Energy will receive 13% of the yearly profit after tax over the first 24 years of operation,
providing the Company with an ongoing revenue stream and the opportunity to benefit from future improvements in
performance and market conditions.
Helius has also signed a Technical Services Agreement with RWE Innogy to provide ongoing support to ensure the plant
is delivered as per the proposed project timetable. This agreement is valid for 4 years during which time Helius will
be remunerated at commercial rates.
RWE Innogy will invest around EUR260 million in developing the new plant and
Helius Energy will continue to be directly involved in the construction, implementation and start-up phases.
The Stallingborough project received consent under Section 36 of the Electricity Act earlier this year. RWE Innogy
and Helius Energy plan to develop additional biomass projects together in the UK.
Managing Director of Helius Energy John Seed said: "I am delighted that Helius Energy has achieved exactly what it set out to do when it listed last year. This deal
provides us with the funds to continue our strong and steady progress towards the development of a pipeline of biomass
energy projects, as well as an ongoing revenue stream. We look forward to working with RWE Innogy and exploring ways to
exploit the obvious synergies between our respective organisations in the future."
Prof. Fritz Vahrenholt, CEO of RWE Innogy said:
"This transaction enables us to enter the British biomass market successfully. Overall, we intend to increase the
generation of electricity and heat from solid biomass almost five-fold to 600 MWe by 2011. Great Britain is an extremely
important market for these growth plans. This is why I am particularly happy that we have found a competent and
experienced local partner with Helius Energy."
Preparations for the construction of the Stallingborough plant will begin shortly and it is expected to be in
operation by 2011. It will be fuelled by wood residuals or forest biomass. The majority of the required feedstock will
be contractually secured on a long-term basis from a UK supplier. RWE is currently conducting talks with companies who
may be interested in using the thermal output of the plant.
Helius Energy will use the proceeds of the sale to pay down existing debt facilities of 2.5 million and to fund its
pipeline of future projects, in particular for the roll out of Helius Energy's 65MWe and 5 MWe 'Greenswitch' projects.
In addition, the company is in the process of securing the rights to a site in the west of England for its next major
renewable electricity plant and expects to start the formal consenting process by Q2 2009.
The Company expects to have, net cash of 20m, following the completion of the disposal and the pay down of the
Company's existing debt facilities.
For more information contact:
Helius Energy plc Tel: +44 1642 438540
John Seed, Managing Director
Matrix Corporate Capital Tel: +44 20 3206 7000
Louis Castro
Anu Tayal
Gavin Anderson & Company Tel: +44 20 7554 1400
Kate Hill
Robert Speed
Ken Cronin
RWE Innogy
Barbara Woydtke (Germany) Tel: +49 201 12 14074
Stephen Tindale (UK) Tel: +44 7500 951 542
NOTES TO EDITORS:
The Helius Group was established to install and operate biomass fired renewable electricity generation plants. These
will help meet the growing need for reliable power from renewable fuels that help to overcome the issues of climate
change associated with fossil fuels like coal and oil. The management team has over 50 years collective experience in
the energy, manufacturing, biomass and agribusiness sectors, with extensive knowledge of renewable energy markets,
biomass energy technologies and related economics.
RWE Innogy is RWE's subsidiary for renewable energies. Currently, we are operating approx. 620 MW of wind power
capacity, including 60 MW offshore. Additionally, our portfolio comprises approx. 600 MW of hydropower and 113 MWel or
809 MWth from biomass. We are especially strong in Germany, followed by Great Britain.
We also have a reliable basis in
Spain, France, Portugal and the Czech Republic that we are seeking to extend. We plan, build and operate plants to
improve the CO2 balance of the Group and to secure the energy supply to millions of people for the future.
RWE npower is a leading integrated UK energy business. It generates electricity and supplies gas, electricity and
related services to around 6.8 million customers through its retail business. The company owns operates and manages a
flexible portfolio of power stations and has more than 15 years experience developing and delivering CHP projects.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DISLFMFTMMMTMIP
For more information and to contact AFX: www.afxnews.com and
www.afxpress.com
