Kedco signs heads of terms for Londonderry project



LONDON (ShareCast) - Renewable energy (NasdaqGS: REGI - news) group Kedco on Monday provided an update on progress on its product portfolio. The highlight of the same was the signing of a heads of terms agreement with the Londonderry Port & Harbour Commissioners regarding a new biomass project, with a capacity of up to 25MW.

Gerry Madden, Chief Executive Officer (CEO) of Kedco, highlighted that: "(...) Following the commissioning of the Newry Biomass project, the Company has had a number of approaches from various parties with a view to developing new renewable energy projects. The Londonderry Port project is the first such project, and we are delighted to have signed heads of terms."

As well, Kedco notified the market of the beginning of the pre-planning consultation process for a 4MW extension to the Newry Biomass project. This will bring the total capacity of the Newry project up to 8MW once all phases are fully constructed.

Said extension will be developed on land currently leased by the project entity, Newry Biomass Limited ("NBL").

NBL has also already paid a deposit on a new dedicated 33kv grid connection, which will have the ability to take up to 20MW of capacity Kedco also reported today that, following the completion of wind studies at its 500KW Altilow wind project In Donegal, which are expected to take twelve months, the project will move toward financial close and construction. It is expected to be operational in mid-2014.

At 16:00 shares of Kedco were rising by 12.5% to the 90p mark.