Alkane Energy increases output as demand grows

Alkane Energy has increased its output following new contract wins and orders, the gas and power provider said Friday.

Alkane Energy has increased its output following new contract wins and orders, the gas and power provider said Friday.

Production has risen 19% year-on-year, according to the group's trading update for the year to December 31st.

The company expects to deliver full-year electricity output of 167 gigawatt hours (GWh), compared to 140GWh in 2011, in its preliminary results to be released in March.

Group output increased 44% to 101 megawatt hours (MWh) in 2012, buttressed by the addition of seven sites through its acquisition of Greenpark Energy in April.

The transaction bolstered Alkane to the top spot as the largest operator of coal mine methane in the UK.

Another contributor to output was Alkane's approval for plans to extract natural gas at Nooks Farm in Staffordshire. Electricity will be generated using the group's core gas to power skills.

The drill programme is expected to be completed in coming months and the site has estimated contingent resources of 1.5bn cubic feet (bcf) of gas, which is expected to provide 2.0 megawhatt (MW) electricity output for up to 15 years.

Alkane also gained from orders for new biogas plants worth £4.0m and has contracted 21MW of its power response capacity to the National Grid's UK Short Term Operating Reserve ("STOR") market up to March 2014.

"We have continued to see strong growth in our core coal mine methane business and we are encouraged by our progress in related markets such as power response and biogas," Chief Executive Officer Neil O'Brien said.

"The prospect of a shortfall in energy supply in the UK, as highlighted by Ofgem and the National Grid, reinforces our confidence about the continuing opportunities to the group for further growth.

"Given the high level of interest in UK onshore shale gas, Alkane is evaluating its options in relation to potential shale gas resources within its licensed portfolio."

Shares jumped 3.7% to 27.75p at 11:23 Friday.

RD

Recommended

Britain’s ten most-hated shares – w/e 1 July
Stocks and shares

Britain’s ten most-hated shares – w/e 1 July

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
4 Jul 2022
Britain’s most-bought shares w/e 1 July
Stocks and shares

Britain’s most-bought shares w/e 1 July

A look at Britain’s most-bought shares in the week ending 1 July, providing an insight into how investors are thinking and where opportunities may lie…
4 Jul 2022
M&G offers a solid 10.1% yield – but future growth is uncertain
Share tips

M&G offers a solid 10.1% yield – but future growth is uncertain

Financial services group M&G has one of the highest dividend yields in the FTSE 100. But it’s a complicated company, and a tough one to analyse, says …
4 Jul 2022
How to boost your income as dividends come back in fashion
Income investing

How to boost your income as dividends come back in fashion

Dividends are back in fashion. But how do you go about building an income-generating portfolio?
4 Jul 2022

Most Popular

Ray Dalio’s shrewd $10bn bet on the collapse of European stocks
European stockmarkets

Ray Dalio’s shrewd $10bn bet on the collapse of European stocks

Ray Dalio’s Bridgewater hedge fund is putting its money on a collapse in European stocks. It’s likely to pay off, says Matthew Lynn.
3 Jul 2022
UK house prices are definitely cooling off – but are they heading for a fall?
House prices

UK house prices are definitely cooling off – but are they heading for a fall?

UK house prices hit a fresh high in June, but as interest rates start to rise, the market is cooling John Stepek assesses just how much of an effect h…
30 Jun 2022
How to invest in copper, the most important metal in the world
Industrial metals

How to invest in copper, the most important metal in the world

As the world looks to electrify and try to move away from fossil fuels, copper looks set to be the biggest beneficiary. But how can you invest? Rupert…
30 Jun 2022