Helius Energy set to benefit as RWE’s Stallingborough biomass power station approved

An online article in a regional publication, The Grimsby Times, reported that RWE AG’s (XETRA: RWE) Stallingborough biomass power plant has received the green light from the North East Lincolnshire Council's planning committee. The Stallingborough plant was initially conceived by Helius Energy (AIM: HEGY), and was later sold to RWE in 2008.

Under the terms of the project’s sale, Helius retained the right to receive 13% of the plant’s yearly net profit over the first 24 years of operation.

The work is expected begin on the Stallingborough plant at the end of this year, and it could be operational by 2013.
The news follows the approval of Helius’ new 100MW plant, which is planned at Avonmouth Dock on the Bristol Channel. The Avonmouth project received consent from the Department for Energy and Climate Change for the construction of the biomass-fuelled power station, based on the same technology as the Stallingborough plant.

The Avonmouth power station will produce enough renewable electricity for around 200,000 homes, and will save over 720,000 tonnes of carbon dioxide a year when compared to a similarly sized coal-fired power station, Helius said on 26 March.

The electricity produced at the plant will be fed into the local electricity grid, and Helius has already secured grid access rights.

The biomass power plant will require up to 850,000 tonnes of sustainably sourced feedstock each year, primarily wood-based material. Construction of the plant is expected to start following conclusion of the engineering procurement programme.

http://www.proactiveinvestors.com.au/companies/news/6344/helius-energy-set-to-benefit-as-rwes-stallingborough-biomass-power-station-approved-6344.html