26 July 2012
Helius Energy (LSE: HEGY.L - news) plc ("Helius" or the "Company")
Comment on the publication of the UK Government's confirmation of
levels of support for dedicated biomass for England and Wales
Helius welcomes the confirmation by the Department for Energy (NYSEArca: JJE - news) and Climate Change (DECC), on 25th July 2012, of the levels of banded support under the Renewables Obligation legislation for the period 2013-17. This confirmation follows a public consultation period that began in October 2011. The response can be found at
http://www.decc.gov.uk/en/content/cms/consultations/cons_ro_review/cons_ro_review.aspx
The Company's management are of the opinion that the retention of the existing support level for dedicated biomass of 1.5 Renewable Obligation Certificates per megawatt hour (ROCs/MWhr) until 1 April 2016, when the level will drop slightly to 1.4 ROCs/MWhr for new accreditations, effectively maintains the existing levels for those projects already under construction or approaching financial close. Helius intends to participate in the proposed further consultation on introducing a supplier cap on dedicated biomass to limit the amount of new build supported under the Renewables Obligation.
Helius is currently seeking to secure a project funding package for a 100MWe plant in Avonmouth, Bristol, with the aim of starting construction in the second half of 2012. As stated in the DECC response it is not the intention to stop projects that can reach financial close this year (ending March 2013) and that they will be accommodated within the supplier cap.
Biomass generation projects provide baseload renewable power for the grid and have a substantial role to play in cutting the country's overall carbon emissions. Biomass and bioenergy have the potential to provide as much as half of the UK's 2020 renewables target.
For more information please contact:
Helius Energy plc Tel: +44 (0) 20 7723 6272
Adrian Bowles, Chief Executive Officer
Alan Lyons, Chief Financial Officer
Numis Securities Ltd Tel: +44 (0) 20 7260 1000
Alastair Stratton/Richard Thomas (as Nominated Adviser)
James Black (as Corporate Broker)
Kreab Gavin Anderson Tel: +44 (0) 20 7074 1800
Kate Hill
Andrew Jones
Notes to Editors:
Helius Energy plc was established to identify, 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.
