React Energy (REAC)

 

React Energy gives projects update

React Energy continues to make good progress towards reaching financial close and starting construction of the Enfield Project, which has full Planning and Environmental Permission for the conversion of 60,000 tonnes of waste timber a year into up to 12MW of electricity and heat.

Negotiations with MWH Global Inc regarding the EPC contract are progressing and moving towards a conclusion. The company expects to have a final form of contract ready for signing shortly. Heads of terms with feedstock suppliers have also been signed with negotiations continuing with a number of other potential suppliers.

Meantime, the single wind turbine project Altilow is expected to start construction in 2014, while the single wind turbine project Moneygorm will also be in a position to start.

"The intention is to combine the financing (of the Moneygorm project) with that of the Altilow single turbine," the company said.

In addition, React has now signed a legal option and agreement for lease with the London & Devonshire Trust regarding a site for a 10MW biomass CHP project in Plymouth.

This agreement provides the Company with a three year option period to secure planning permission for the project and any other necessary consent required to start construction. As previously announced, a grid connection agreement has already been secured for the project. The Company is aiming for the project to be ready for construction by the end of 2014.

At 8:41am: (LON:REAC) share price was +33.75p at 33.75p