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 continues to be a profitable utility company producing green energy from methane the harmful greenhouse gas. Reports for the year ended 31 2007 reported an adjusted profit before tax of 1.34 million.

• Operates 7 sites in the UK and in 1 in Germany selling electricity into strong market and low input from own gas reserves.
• Owns power plants generated a record 79.9 million liko watt hours of electricity during the year, up and sufficient to power 35,0000 market and low input costs from own gas rewserves.
• Our direct gas sales were 11.9 million cubic meter. 25% on 2006
• Extensive resources for future development
• O 30% of Pro2 Anlagentechnik in Germany dealing with a leading climate change technology and company. Providing decentralised energy get biofuelf facilities.

"Our aim is to expand by building on Alkane's existing renewable energy business, through acquisition and by partnering with organisations that need our technology, our emissions credits and expertise to comply with increasingly tight EU environmental legislation and Kyoto targets. By delivering added value to our shareholders, we are also helping to reduce the climate change effects of a potent greenhouse gas through the application of state-of-the-art renewable energy technology."  - John Lander, Chairman

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              Location                   Capacity            Max CO2 mitigation
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            n/a                              16.61  (MW)   564,108 (tonnes)      

Geographical Spread

UK

Germany

Board of Directors and Key Management

Neil O'Brien	Chief Executive Officer
Dr Cameron Davies	Business Development Director
David Oldham	Technical Director
Stephen Goalby	Finance Director
Lord Fraser of Carmyllie	Non-Executive Director
John Lander	Chairman
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

03/03/09 - Alternative Energy Producer Alkane Energy Sells Its Investment In Germany’s Pro2 To Concentrate On Its UK Coal Mine Methane Plants In the UK
29/01/09 - Analyst Says That Alternative Power Supplier Alkane Energy Should See Revenue And Profits Firmly On The Up In 2009
05/08/08 - Alkane Energy’s Coal Mine Methane Portfolio Set To Benefit From Rising Electricity Prices

Most Recent Statement

06/05/09 - AGM Statement
18/03/09 - Board Change
18/03/09 - Unaudited preliminary results for the year ended 31 December 2008
05/03/09 - Completion of sale of interest in Pro 2
02/03/09 - Agreed sale of interest in Pro 2
03/11/08 - Appointment of New CEO