Alkane Signs Tolling Contract

RNS Number : 7310B

Alkane Energy PLC

02 November 2009

 



2 November 2009

Alkane Energy plc

('Alkane' or 'the Group')

Alkane Signs Tolling Contract with GDF SUEZ

Alkane Energy plc (AIM: ALK), the profitable alternative energy company which owns and operates environmentally friendly power generation plants using coal mine methane (CMM) as fuel, is pleased to announce a 12 month tolling contract with energy supply company GDF SUEZ Energy UK. 

Under the tolling contract Alkane will assign 7MW of excess capacity to GDF SUEZ, provided by its sites at Markham and Shirebrook. The agreement will generate revenues for Alkane of approximately £300,000.

Tolling is a method of maximising the economic value of these two sites by utilising the Group's excess grid and engine capacity. Under the tolling contract, Alkane will effectively rent the capacity to GDF SUEZ in return for a standard fee.  Using natural gas as the fuel, GDF SUEZ will determine the engine running regime and be responsible for the running costs of the production.

In addition Alkane has entered into a 12 month sales agreement with GDF SUEZ for output of circa 2MW from our CMM reserves at Shirebrook.

Commenting on the contract, Neil O'Brien, Chief Executive of Alkane Energy said: 

"We are very pleased to be working with GDF SUEZ and look forward to developing a long term relationship. We remain committed to further enhancing the potential of our assets and will continue to evaluate other opportunities to further improve the quality of our earnings."

Enquiries:

Alkane Energy plc Neil O'Brien, CEO Steve Goalby, Finance Director	Tel: [phone]
Hudson Sandler  Nick Lyon / Kate Hough	Tel: [phone]
Altium  Corporate Finance - Adrian Reed Corporate Broking - Chloe Ponsonby	Tel: [phone] Tel: [phone]

 

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