Company Information for Alkane Energy plc

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Company Statement

Alkane Energy is an international renewable energy company that designs, builds, operates and services methane treatment and generation plants. These plants greatly reduce emissions of damaging greenhouse gases and play a vital role in world-wide efforts to reduce global warming.


ALKANE ENERGY RECOVERS EMISSIONS OF METHANE FROM DISUSED COAL MINES AND USES THEM AS FUEL FOR RENEWABLE ELECTRICITY GENERATION.

Alkane’s UK designed coal mine methane capture and renewable energy generation plants have a capacity to produce 133 GWh of electricity from emissions of this powerful greenhouse gas. In 2006, Alkane’s generation plants removed atmospheric emissions equivalent to about 450,000 tonnes of carbon dioxide.

• Alkane builds and operates decentralised methane extraction and electricity generation plants which reduce greenhouse gas emissions.
• Alkane sells electricity and gas to local customers from its containerised energy plants
• Alkane is the leading UK producer of Climate Change Levy exempt electricity using technology that converts damaging methane emissions from abandoned coal mines into electricity and heat.
• Alkane sells its management and technical consulting services to the renewable energy and carbon trading communities
• Alkane has started the process required to verify its emissions savings for sale in the voluntary carbon trading market which is gradually replacing offsets as a means of reducing industry’s carbon dioxide emissions.
• If the EU Emissions Trading Scheme (EU ETS) is extended to include methane, future income may also be earned from trading of carbon emission reduction certificates (CERs).
• Alkane Energy plc operations are handled by Alkane Energy UK Limited which manages decentralised electricity generation plants in the UK and Germany. 
• Alkane’s Green Energy Park at Bevercotes, Nottinghamshire, UK. This site has a generating capacity of 4.1MW.

Alkane posted record turnover of £27.32 million in the year ended December 31st 2006, made an operating profit of £1.12 million and saved carbon emissions equivalent to around 1,000 London to New York return flights

• Turnover of £27.32 million — up 39% on 2005
• Operating profit of £1.12 million
• Installed mine gas power generation capacity — 17MW
• Generated equivalent of 59 million KWh of electricity
  Sufficient power for a population of 70,000
  Saves emissions equivalent to:
  - 1.5 billion car miles
  - 1,000 return flights from London to New York
• Operates seven energy parks in the UK and one in Germany.
• Harnessed around 20,000 tonnes of methane in 2006
  Saves equivalent of 450,000 tonnes of carbon dioxide
• Energy parks save as much CO2 as about 100 1.8MW wind turbines.
• UK public company listed on AIM
• Owns 38% of Pro2 Anlagentechnik in Germany
  Leading climate change technology company
• Methane (CH4) is a potent greenhouse gas
  1 tonne of methane saved
  equivalent to 23 tonnes of CO2 (IPCC)

Company Diagram

The mine gas process

Operations and Technology

Coal mine methane (CMM) or mine gas is the damaging greenhouse gas released from coal seams during and after mining operations. Methane is released into the atmosphere when coal is mined and continues to emit long after mining operations are abandoned. In the UK, there are over 1,000 disused coal mines and DEFRA research supports the industry view that these mines are responsible for substantial UK greenhouse gas emissions.

According to estimates in two DEFRA* reports on CMM emissions prepared by environmental consultants White Young Green in 2005, the largest abandoned coal mines in the UK emit over 60,000 tonnes of methane per year, equivalent to approximately 1.4 million tonnes of CO2. The consultants modelled future mine methane emissions and showed that these will continue beyond 2050. They concluded that “It is clear that recent closures and closures in the near future are likely to make significant step increases in the total emissions for the next 5 to 10 years”.

The cumulative total emissions which could be captured during this time-frame is estimated at nearly 30 million tonnes of CO2 equivalent. This means that 1.3 million tonnes of pure methane will emit to the atmosphere unless energy capture schemes are installed on all the abandoned mine sites reported by DEFRA. If all this methane were converted into electricity, the cumulative total to 2050 works out at 45,000 GWh, equivalent to the output of a small gas fired power station.

Alkane has six mine gas capture plants operating in the UK and one in Germany. The company’s inventory of UK licences and mines is currently being reviewed in the light of the recent higher electricity prices, coal bed methane (CBM) potential and to complete plans for a 5 year drilling and development programme. In addition, the company is planning to increase output capacity at existing sites where gas reserves are proven and these additional developments will be completed as soon as practicable.

The following Alkane Energy UK Limited sites with an installed capacity of 16.61MW are currently in operation saving the equivalent of around 560,000 tonnes of carbon dioxide per year.

Site Locations and Capacity in MW with Max CO2 mitigation (tonnes)
Bevercotes Nottinghamshire (UK); 4.05; 138,155
Joarin Gelsenkirchen (DE); 1.0; 34,112
Mansfield Nottinghamshire (UK); 3.7; 126,216
Sherwood Nottinghamshire (UK); 0.66; 20,467
Warsop Nottinghamshire (UK); 1.35; 46,052
Wheldale West Yorkshire (UK); 4.5; 153,054
Whitwell Derbyshire (UK); 1.35; 46,052
Total 16.61 MW and 564,108 tonnes mitigation

Geographical Spread

UK

Germany

Board of Directors and Key Management

John Lander	Chairman
Dr Cameron Davies	Chief Executive
David Oldham	Technical Director
Stephen Goalby	Finance Director
Lord Fraser of Carmyllie	Non-Executive Director
Julia Henderson	Non-Executive Director

Company Address Edwinstowe House High Street Edwinstowe, Nottinghamshire, United Kingdom NG21 9PR Telephone: +44 (0) 1623 827927 Facsimile: +44 (0) 1623 827930 Email: info[at]alkane.co.uk Website: http://www.alkane.co.uk

Capital 91,926,924 ordinary shares with a nominal value of 0.5p each, with voting rights

Related News

05/08/08 - Alkane Energy’s Coal Mine Methane Portfolio Set To Benefit From Rising Electricity Prices

Most Recent Statement

17/09/08 - Unaudited interim results for the half year to 30 June 2008
27/08/08 - Notification of Results
19/03/08 - Unaudited preliminary results for the year ended 31 December 2007
17/09/07 - IFRS Transition statement
06/09/07 - Notice of Results
05/08/07 - Holding(s) in Company