Trading Statement

RNS Number : 9076K

Alkane Energy PLC

28 April 2010

 



28 April 2010

Alkane Energy plc

("Alkane" or the "Company")

Trading Update

Alkane Energy plc (AIM: ALK) is a profitable alternative energy company that owns and operates power generation plants using coal mine methane as fuel.

At the Annual General Meeting of Alkane, to be held today at 11am at Edwinstowe House, High Street, Edwinstowe, Nottinghamshire, John Lander, Chairman of Alkane will make the following statement.

"Operational results for the first quarter have been satisfactory with electricity output up 20% compared to 2009.  It is widely expected that power prices will rise in the medium to longer term, however as previously announced current wholesale prices are significantly lower than 2009 at an average of £40/MWh.   Electricity sales contracts are in place for 78% of Alkane's existing portfolio for the current financial year.

The Group continues to expand its coal mine methane capacity with production already commenced at our newest site at Florence, Staffordshire.  We have two further sites under construction at Kings Mill in Nottinghamshire and Newmarket in West Yorkshire.

The tolling contract in place with GDF for conventional gas power generation is making good progress with the potential to enhance the operating regime and capacity available for this development.  We have continued to make progress in our collaboration with The TEG Group plc for the development of biogas projects and we are actively pursuing a number of other biogas opportunities.

In closing, I would like to thank my colleagues for their hard work and expertise in continuing to operate a profitable and cash generative alternative energy company."

Enquiries

Alkane Energy plc Neil O'Brien, CEO Steve Goalby, Finance Director www.alkane.co.uk	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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