AGM Statement

Alkane Energy PLC
11 May 2005

11 May 2005

For immediate release


             Alkane Energy plc ('Alkane', 'the Group' or 'the Company')

                                 AGM Statement


Alkane Energy is a rapidly expanding international renewable energy company that
designs, builds, operates and services methane treatment and electricity
generation plants. These plants greatly reduce emissions of damaging greenhouse
gases.


At the Company's Annual General Meeting, to be held at 10.30am today at
Edwinstowe House, High Street, Edwinstowe, Nottinghamshire, John Lander,
Chairman of Alkane, will make the following statement:


'2004 marked a significant turning point in the fortunes of the Company with
turnover for the year increased by 172% and an operating profit of £199,000
achieved during the second half of the year.


Our German subsidiary, Pro2, enjoyed very strong trading during this period and
has commenced 2005 with a substantially increased order book.  The revised
renewable energy legislation in Germany underpins orders at Pro2 and we are
excited about the prospects of entering profitable new international markets. To
this end, we have sold our first containerised generation systems in two new
markets, Hungary and Russia, and we have established a new service company in
the former country.


Our first German renewable energy plant, using Coal Mine Methane (CMM) as fuel,
has been generating at full capacity since March.  Three further CMM projects
are in the pre-development phase, one of which we hope to complete by the end of
the year.


In the UK, our CMM generation sites at Bevercotes and Markham are complete and
connection to the grid is now expected within the next two weeks.  They will
bring 5.4 MW of generating capacity into the portfolio in the near future.  Two
other sites are under development and the containerised generation plants for
these have been ordered from Pro2 for delivery in July.  Energy prices in the UK
continue to be favourable, significantly improving the commercial viability of
our CMM business.


Also in the UK, our recent acquisition, Farley Energy Engineering Limited, which
provides equipment and services to the landfill gas and wastewater sectors, is
now fully integrated into the group as Pro2 Services Limited.


In summary, 2004 was a year of transition for Alkane into a broad based
international renewable energy company. The Board is confident that the strong
progress made towards a profitable future will be maintained in 2005.


Enquiries:


Alkane Energy plc                        Buchanan Communications

John Lander, Chairman                    Eric Burns, Account Director
Dr Cameron Davies, Chief Executive
Tel: [phone]                        Tel: [phone]






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