29 August 2008
Helius Energy plc
(“Helius” or “the Company”) General Meeting Statement
Alex Worrall, chairman of Helius, will today make the following statement at the Company’s General Meeting:
“The Company will announce its preliminary Financial Results for the financial year ending 30 September 2008, in December 2008.
Helius is in a strong position with respect to its current and pipeline projects, with good potential for future growth. The Company has continued to make progress towards financial closure on its flagship Stallingborough project and to progress other biomass-fired 65 megawatt electricity generation schemes in its project pipeline. In addition, the first GreenSwitchTM project in Rothes is currently progressing through the planning system.
Finances
Helius has raised £2 million following the issue of new shares through the subscription agreement with Credit Suisse which was announced on 1 August 2008. Under the agreement Credit Suisse will subscribe for 14,814,815 new ordinary shares at 13.5 pence per share. Helius will use this equity investment as working capital to enable further development of its business and pipeline projects. The Company’s cash expenditure is in line with management’s expectations.
Stallingborough Project
On 16 June the Company was granted consent under Section 36 and deemed planning permission to build and operate a 65 megawatt biomass fuelled electricity generating station at Stallingborough in North East Lincolnshire. Making his announcement, Energy Minister Malcolm Wicks described the project as “another stepping stone towards powering a greener, cleaner UK.”
Since that time, a scheme of archaeological investigations agreed with the local authority has been completed to facilitate commencement of work on site. The Company has also discharged the first tranche of planning conditions related to ‘Preliminary Permitted Works’ which allows preliminary ground works, including the implementation of nature conservation proposals, to be commenced. These site preparation works are expected to begin within the next two months. In accordance with the Company’s AIM Admission Document, Helius is currently in negotiations to pre-sell a majority holding in the 65MWe project on the Stallingborough site to a funding partner. Subject to the successful conclusion of these negotiations, the potential upfront revenue raised by this sale will be used to fund further pipeline projects.
CoRD Project
As previously announced, the Combination of Rothes Distillers (CoRD) has lodged a planning application with Moray Council for a 7.2MW combined heat and power scheme to transform distillery by-products into renewable electricity, usable heat and other added value products.
The scheme will use the Company’s GreenSwitchTM processing and biomass CHP (combined heat and power) technology. Subject to planning approval and commercial agreement, construction is expected to begin in the first half of 2009.
Helius Africa
Helius Energy Africa Pty Limited (“Helius SA”) is exploring co-generation opportunities and has become an Independent Power Provider to Eskom. The Company is seeking to complete an agreement with a BEE consortium to take a stake of just over 25 per cent in Helius SA and continuing in discussions with other potential investors to provide working capital to take Helius SA up to the point of constructing its projects.
People
We have also strengthened our senior management team with the appointment of Paul Brighton as Planning Director. Paul has previously held a number of similar roles and has been involved in the Company’s pipeline projects since inception.
We have also appointed Ian Freeman as our Head of Engineering. Ian has significant experience within the Biomass sector.
Further Projects
The Company is close to securing the rights to a site in the west of England for its next project, as a result the Company has decided not to continue with the Seaton Port option. Once secured, the Company will start the consenting process, under Section 36 of the Electricity Act, for the approval of its second major biomass power plant, this is expected to commence before the end of 2008.
Helius continues to make strong and steady progress towards the development of a pipeline of biomass energy projects.
The rising cost of fossil fuels along with an ageing power infrastructure in the UK reinforces the need for sustainable, carbon neutral alternatives for energy supply. The publication of the White Paper for Energy provides the legislative framework to accelerate development of renewable energy supplies in the UK. Helius Energy has built a team of people with significant experience in the Biomass sector and is positioned to develop multiple projects in the coming years.”
For further details contact:
| John Seed, Managing Director |
Helius Energy Plc |
01642 438 540 |
Tom Griffiths, Antonio Bossi |
Arbuthnot Securities |
020 7012 2000 |
Ken Cronin, Robert Speed, Kate Hill |
Gavin Anderson & Company |
020 7554 1400 |
