Renewable Energy Generation : Project financing and turbine supply agreement

24 June 2014

Renewable Energy Generation Ltd

Project financing and turbine supply agreement

Renewable Energy Generation Limited ("REG") (AIM: WIND), the renewable energy group, announces that it has completed the project financing of its 10MW St Breock Repower Wind Farm in Cornwall and the 8MW Ramsey Extension Wind Farm in Cambridgeshire. The project financing, with ING Bank N.V. ("ING"), is for a total of £21m, with an underlying amortisation schedule of 15 years post construction

REG has also placed orders, under turbine supply agreements, with Vestas-Celtic Wind Technology Ltd for five V80 2 MW turbines at St Breock and four V90 2 MW turbines at Ramsey. The sites are already under construction, with turbines scheduled to arrive during Q4 2014. Both projects are expected to become operational in the first half of 2015. Together the projects will contribute around 49GWh per annum of green electricity, sufficient to power the annual equivalent of approximately 11,500 homes.

Andrew Whalley, Chief Executive Officer said:

"We are delighted to partner for the first time with ING, one of Europe's leading banks with an increasing footprint in supporting renewable energy projects, in the financing of these two new wind projects. We look forward to developing this relationship with ING".

"It is also encouraging to continue our excellent long term relationship with Vestas, adding to the turbines it has supplied for many other REG projects over the years".

"We are replacing the eleven 450KW turbines first erected at St Breock in 1995.  These have produced, on average, around 9,000MWh of electricity per annum. The five 2MW turbines that are replacing them will almost triple the site's output of clean electricity, testament to the higher efficiencies and scale of the latest machines."

"Importantly, the two new projects will also provide significant community benefits totalling, over their anticipated lives, around £2.25m. REG remains resolutely committed to maximising community funding from its renewable energy projects."

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Notes to editors

Renewable Energy Generation Ltd (REG) is an AIM listed renewable energy group. Its main business is the development, construction and operation of wind farms and generating power from refined used cooking oil.

REG Windpower: currently operates 11 wind projects in Cambridgeshire, Cornwall, County Durham, Yorkshire, Lancashire, Cumbria and Gwynedd, with a total capacity of 34.7MW as well as 3 projects on behalf of its partner BlackRock totalling 28MW. REG also has around 200MW of projects in the planning system awaiting consent.  

REG Bio-Power UK Ltd: it operates electricity generation plant powered by fuel recovered from used cooking oil.

Headquartered in Jersey, REG was admitted to trading on AIM, a market operated by the London Stock Exchange, in May 2005 (AIM: WIND).