19 April 2011
Helius Energy plc
Helius Energy plc Announces the Award of Contracts for Biomass CHP Project in Scotland
Following the Helius Energy plc ("Helius") announcement on 14 April 2011 of financial close in respect of its 7.2MW Biomass CHP project at Rothes, Morayshire, Helius CoRDe Ltd ("CoRDe" or the "Company") today announces that it has entered into the full suite of construction contracts for the project. CoRDe is a joint venture company between Helius Energy plc, Rabo Project Equity BV and The Combination of Rothes Distillers Limited.
Helius will provide Management Services support to the CoRDe project from the commencement of construction and through the operational phases of the project. Key contracts with a value of over £44 million have been awarded to:
· Fichtner Consulting Engineers Ltd, to act as engineering employers representative to assist Helius with the delivery of the project on behalf of the Company;
· Aalborg Energie Technik A/S (AET), for the design, supply, erection and commissioning of the Biomass CHP plant. The plant will condition and burn solid residues from malt whisky distilling and wood fuel. Electricity will be exported to the local electricity network;
· Robertson Northern Ltd, who will undertake civil works, providing the underlying infrastructure for the CHP plant and associated equipment and Principal Contractors role for the duration of the project; and
· Wellman Process Engineering Ltd, who will provide evaporation equipment which will enable the production of Pot Ale Syrup.
AET is close to completion of pre-construction engineering works. Robertson has commenced on-site preparation and full works are expected to start shortly. The completed plant is expected to enter into commercial operation in the first half of 2013.
The project will create approximately 100 jobs during construction and employ around 20 people full-time once operational.
In addition, the following key counter parties have been contracted under long term arrangements:
· Electricity and associated renewable benefits will be sold to npower Ltd and delivered via the local electricity network under a long term Power Purchase Agreement;
· Wood fuel will be supplied from sustainable sources, including from Stobart Biomass Products Ltd; and
· Pot Ale Syrup will be sold by CoRDe through KW Trident (AB AGri Ltd), a subsidiary of Associated British Foods plc.
CoRDe would like to thank the following organisations for their support during the development phase of this project.
· Burges Salmon LLP has provided legal advice to CoRDe since its creation and has assisted in the delivery of a complex transaction structure involving multiple counter-parties; and
· Financial advisors, Ambrian Partners acted as Adviser and Placing Agent to CoRDe Ltd in respect of the CoRDe Project Equity.
The operational plant will deliver greenhouse gas savings of some 46,000 tonnes of CO2 per year compared to UK coal fired stations and will operate at a fraction of the recently announced targets for emissions set in the sustainability criteria under the Renewables Obligations (Scotland) Order.
Adrian Bowles Helius CEO said: "Announcing the implementation of these key contracts so quickly after achieving financial close demonstrates our commitment to delivering this project on time. We are confident that we have the right partners in place to ensure we achieve this."
For more information please contact:
Helius Energy plc
Alan Lyons, Chief Financial Officer
Tel: +44 (0) 20 7723 6272
Numis Securities Ltd
James Black (as Corporate Broker)
Tel: +44 (0) 20 7260 1000
Kreab Gavin Anderson
Tel: +44 (0) 20 7074 1800
Notes to Editors
About Helius Energy plc
Helius Energy plc was established to indentify, 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.
Helius is also developing 100MWe projects at Avonmouth and Southampton.
About The Combination of Rothes Distilleries Limited (CoRD)
The Combination of Rothes Distilleries (CoRD) has been processing co-products from the Speyside whisky industry for over 100 years. It was set up as a joint venture in 1904 to serve the five distilleries then operating in Rothes and, in its early days, specialised in the drying and processing of surplus distillery pot ale into fertiliser cake.
In 1970 CoRD opened its first joint processing plant and handled two key co-products of distilling, draff and pot ale, to produce a finished nutritional animal feeds product (Distillers Dark Grains). In 1974, a second processing plant was added and today CoRD handles co-products from up to 16 Speyside distilleries owned by its shareholders; Ben Riach Distillery Co Ltd, Chivas Brothers Ltd (Pernod Ricard), The Edrington Group, Glen Grant Distillery Co Ltd (Campari) , Inverhouse Distillers (ThaiBev), Diageo and John Dewar & Son (Bacardi).
About Helius CoRDe Limited
Helius CoRDe is the Joint Venture Company, created by Helius Energy and CoRD to develop, build own and operate the proposed biomass CHP project at Rothes. With further investment from Helius and Rabo, CoRDe ownership now comprises Helius (50% + 1 share), Rabo (44.7% - 1 share), and CoRD (5.3%).
The CHP unit will use a combination of distillery co-products and wood chip to generate 7.2 megawatts of electricity, enough for 9,000 homes, which can be used onsite or exported to the local electrical distribution network.