Proactiveinvestors United Kingdom Helius Energy https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Helius Energy RSS feed en Sun, 21 Jul 2019 01:01:32 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Helius Energy shares double as it sells-up and plans delisting ]]> https://www.proactiveinvestors.co.uk/companies/news/67348/helius-energy-shares-double-as-it-sells-up-and-plans-delisting-78543.html Helius Energy (LON:HEGY) more than doubled in early deals as investors played catch up to Friday’s after-hours asset sale news. 

The biomass firm revealed that it had agreed a £12.3mln deal to sell its controlling stake in the Helius CoRDe Ltd business.

It is, however, a bitter-sweet rally for investors. Although the sale is priced at a significant premium to the group’s overall market capitalisation, it also marks the end of the group’s growth aspirations.

Helius also confirmed that planning consent for the proposed Avonmouth project is set to expire on March 26 and it had not been able to secure necessary project finance, and as a knock-on it doesn’t believe it will be able to deliver a proposed project in Southampton either.

The company will now move to cancel its listing on London’s AIM market and return cash to shareholders.

Having considered the trade-off between potential future returns and current value available for Shareholders we consider that the disposal of our interest in Helius CoRDe and the subsequent return of all available cash provides the best value for our shareholders as a whole,” said Helius chairman John Seed.

On AIM, in Monday’s early deals, Helius Energy shares jumped 2.28p or 140% to trade at 3.0p. At this price the group is valued at £7.6mln.

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Mon, 23 Mar 2015 08:59:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/67348/helius-energy-shares-double-as-it-sells-up-and-plans-delisting-78543.html
<![CDATA[News - Helius Energy confident of starting Avonmouth construction work ]]> https://www.proactiveinvestors.co.uk/companies/news/56240/helius-energy-confident-of-starting-avonmouth-construction-work-66397.html Helius Energy (LON:HEGY) is confident of starting construction work on the Avonmouth biomass plant in the first half of this year.

Chairman John Seed said that despite uncertainties caused by the government’s reforms to the electricity market, the company has continued to advance towards finalising the financing for the large scale Avonmouth project.

“This project is now at a very advanced stage and I am confident that we are well placed to reach financial close and begin construction of the plant during the first half of 2014," he said in the company’s results statement today.

Helius reported an operating loss of £1.3mln in the twelve months to September 30, down from £11.6mln in the year before.

During the year, Helius completed the development of the 7.2 megawatt Rothes biomass plant, which is now exporting electricity to the grid.

“The start of commercial operation of the CoRDe biomass power plant in Rothes was an important milestone for the Company and one which demonstrates our strategy of delivering projects to financial close and then managing the on-going operation of those projects,” Seed added.

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Wed, 05 Mar 2014 08:45:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/56240/helius-energy-confident-of-starting-avonmouth-construction-work-66397.html
<![CDATA[News - Helius Energy non-exec Angus MacDonald ups stake to 18.13pct ]]> https://www.proactiveinvestors.co.uk/companies/news/37183/helius-energy-non-exec-angus-macdonald-ups-stake-to-1813pct-44467.html

Helius Energy (LON:HEGY) has received a vote of confidence from its non-executive director Angus MacDonald, who has bought £82,500 worth of shares in the company at a premium to the current market price.

Over the past two days, MacDonald has purchased 500,000 shares at a price of 16.5 pence per share compared with Wednesday’s closing price of 15.75 pence to increase his total shareholding to 24 million shares, which represents an 18.13 percent stake in the company.

Last month, the company told investors that it expected the 7.2 MW Rothes project in Scotland to begin commercial operations in the first half of 2013.

It also said that its project pipeline was progressing well with contracts being finalised for the Avonmouth project on the Bristol channel, which would allow finance to be secured.

In Southampton, its proposed 100MW biomass plant is in the consent process.

The company booked revenues of £151,000 in the six months to March 31 this year, compared to zero in the comparable period.

It narrowed the loss before tax to £644,000 compared to a loss of £956k in 2011. As at the period end, it had cash of £4.3 million compared to £6.6 million a year earlier.

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Thu, 21 Jun 2012 11:11:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/37183/helius-energy-non-exec-angus-macdonald-ups-stake-to-1813pct-44467.html
<![CDATA[News - Helius Energy says Rothes project is on schedule and within budget ]]> https://www.proactiveinvestors.co.uk/companies/news/36080/helius-energy-says-rothes-project-is-on-schedule-and-within-budget-43122.html Biomass plant builder Helius Energy (LON:HEGY) expects its 7.2 MW Rothes project in Scotland to begin commercial operations in the first half of 2013.

Unveiling its interims today, the firm said its project pipeline was progressing well with contracts being finalised for the Avonmouth project on the Bristol channel,  which will allow finance to be secured.

In Southampton, its proposed 100MW biomass plant is in the consent process.

The company booked revenues of £151,000 in the six months to March 31 this year, compared to zero in the comparable period.

It narrowed the loss before tax to £644,000 compared to a loss of £956k in 2011. As at the period end, it had cash of £4.3 million compared to £6.6 mln a year earlier.

Chairman John Seed said: "In light of the success of the financing of the Rothes project and the progress made so far with the Avonmouth project, the company will continue to develop and review its project pipeline and to focus on its funding requirements including raising additional project debt and project equity in 2012 and securing a development fee from the Avonmouth project in order to provide working capital for the company."

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Tue, 22 May 2012 07:59:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/36080/helius-energy-says-rothes-project-is-on-schedule-and-within-budget-43122.html
<![CDATA[News - Non-exec ups stake in Helius Energy ]]> https://www.proactiveinvestors.co.uk/companies/news/30607/non-exec-ups-stake-in-helius-energy-36599.html Directors have continued their recent buying into biomass plant builder Helius Energy (LON:HEGY) with new non–executive Alastair Salvesen snapping up more shares.

Salvesen, a leading figure in the UK’s seafood industry who has directorships in a number of businesses, now owns 23.01 per cent of the cleantech firm, up from 22.39 per cent.

Salvesen, who through his family’s holding also retains a major shareholding in Aggreko (LON:AGK), the quoted Glasgow plant hire group, was appointed to the board last week 

New chief operating officer, William Ingram Hill, 35, also bought recently 250,000 shares in the company for 11.5p each.

Helius is developing biomass-fired renewable electricity  generation plants at sizes ranging from around seven megawatts to 100MW.

The firm is involved in several projects and its long-term aim is to be an owner/operator of 500MW worth of power plant assets.

The group is focused on a 100MW Avonmouth biomass plant, located on the Bristol Channel; a 7.2MW project in Scotland with the Combination of Rothes Distillers (CoRDe); and another 100MW biomass plant proposed for Southampton.

Helius also developed the 65MW net capacity Stallingborough biomass plant, located on the south side of the Humber estuary in Lincolnshire.

Helius Alpha, a subsidiary that owned the rights to develop and operate the plant, was then sold in its entirety to RWE Innogy.

In early October, Helius raised £6.6 million in a placing priced at 16p pence per share.

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Tue, 06 Dec 2011 09:19:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/30607/non-exec-ups-stake-in-helius-energy-36599.html
<![CDATA[News - Helius Energy’s new COO buys 250,000 shares ]]> https://www.proactiveinvestors.co.uk/companies/news/30494/helius-energys-new-coo-buys-250000-shares-36445.html

Biomass power plant builder Helius Energy (LON:HEGY) announced today that its chief operating officer, William Ingram Hill, yesterday bought 250,000 shares in the company for 11.5 pence each.

The news comes after Helius earlier this week reported that Ingram Hill had joined the board as chief operating officer while key investor Alastair Salvesen had been appointed as a non-executive director. Salvesen, a leading figure in the UK’s seafood industry who has directorships in a number of businesses, himself recently upped his stake in Helius from below five per cent to more than one-fifth of the company.

Helius is a developer of biomass-fired renewable electricity generation plants at sizes ranging from around seven megawatts to 100MW. The firm is involved in several projects and its long-term aim is to be an owner/operator of 500MW worth of power plant assets.

Currently, Helius is focused on: the forthcoming 100MW Avonmouth biomass plant, located on the Bristol Channel; a 7.2MW project in Scotland with the Combination of Rothes Distillers (CoRDe); and another 100MW biomass plant proposed for Southampton.

Helius also developed the 65MW net capacity Stallingborough biomass plant, located on the south side of the Humber estuary in Lincolnshire. Helius Alpha, a subsidiary that owned the rights to develop and operate the plant, was then sold in its entirety to RWE Innogy.

As part of the deal, in which Helius made a profit of around £20 million, it will also receive 13 percent of the annual profits after tax generated by the plant during the first 24 years of its operation (this profit was valued by the company at £14.3 million in September 2008).

In early October, Helius raised £6.6 million in a placing priced at 16p pence per share – which was a premium to the share price at the time.


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Fri, 02 Dec 2011 13:57:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/30494/helius-energys-new-coo-buys-250000-shares-36445.html
<![CDATA[News - Helius Energy appoints key investor as non-executive director ]]> https://www.proactiveinvestors.co.uk/companies/news/30373/helius-energy-appoints-key-investor-as-non-executive-director-36302.html

A key investor in biomass power plant builder Helius Energy (LON:HEGY) is joining its board as a non-executive director, the firm announced today.

Alastair Salvesen, who recently increased his stake in Helius from below five per cent to more than one-fifth of the company, has been a leading figure in the UK seafood industry for 30 years, having been managing director and now chairman of Dawnfresh Seafoods. He is also the chairman of Dovecot Studios and of Dawnfresh Farming, as well as being a director at both Praha Investment Holdings and Archangel Informal Investment (Scotland’s largest angel investor syndicate).

On November 1 Helius Energy announced that Salvesen increased his holding in the firm from 4,473,294 shares to 28,168,572 shares. Today it said he now holds 29,668,572 shares (or 22.4 per cent of the business).

Helius also announced two other appointments today. William Rickett, a former senior civil servant with investment banking and advisory experience, comes on board as another non-executive director. Rickett has held top positions at the Department of Energy and Climate Change and the International Energy Agency, and currently holds non-executive directorships at a number of energy-related organisations.

Meanwhile, William Ingram Hill is joining the board as chief operating officer, having previously been Helius’s general counsel and group company secretary.

Helius is currently progressing with a series of projects, including its flagship Avonmouth power plant project (for which it is seeking to secure project-level funding) and a project in Southampton for which it is aims to secure planning consent.


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Wed, 30 Nov 2011 07:31:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/30373/helius-energy-appoints-key-investor-as-non-executive-director-36302.html
<![CDATA[News - Helius Energy: seafood tycoon ups stake to 21 per cent ]]> https://www.proactiveinvestors.co.uk/companies/news/29305/helius-energy-seafood-tycoon-ups-stake-to-21-per-cent-35031.html A key shareholder in biomass power plant builder Helius Energy (LON:HEGY) has increased his stake in the firm from below five per cent to more than one-fifth of the company.

Seafood tycoon Alastair Salvesen’s holding has gone from 4,473,294 shares to 28,168,572, the equivalent of 21.26 per cent of the business, according to a statement from the firm this morning.

Salvesen has been involved in the seafood industry for more than 30 years, holding senior positions in a number of companies including chairman of Dawnfresh Seafoods. He is also a director of Archangels – a business angel network of around 100 high net worth individuals that invests in early-stage companies.

Early in October, Helius announced plans to raise £6.6 million via a share placing at 16 pence per share – a premium to the then share price which chief financial officer Alan Lyons described as “a cracking result in this market”.

The funds will be used to strengthen Helius’s balance sheet and provide additional working capital to allow the company to progress its immediate and longer-term pipeline of projects, including seeking to secure: project-level funding for the firm’s Avonmouth power project; and planning consent for its Southampton project.

Shares in Helius were unchanged in early trading this morning at 15 pence each.

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Tue, 01 Nov 2011 08:23:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/29305/helius-energy-seafood-tycoon-ups-stake-to-21-per-cent-35031.html
<![CDATA[News - Helius Energy welcomes UK govt consultation on biomass energy support levels ]]> https://www.proactiveinvestors.co.uk/companies/news/28975/helius-energy-welcomes-uk-govt-consultation-on-biomass-energy-support-levels-34634.html Biomass power plant builder Helius Energy (LON:HEGY) welcomed the latest government consultation on proposals for levels of support for dedicated biomass, which provides planning security for the next few years.

The company said the Department for Energy and Climate Change’s publication of levels of banded support under the Renewables Obligation (RO) legislation for the period 2013-17 provides greater clarity.

RO is designed to encourage generation of electricity from renewable sources in the United Kingdom, by placing an obligation on electricity suppliers to source an increasing proportion of electricity from renewable sources.

Helius believes that the proposal for dedicated biomass banding - to retain the existing support level of 1.5 RO Certificates per megawatt hour (ROCs/MWhr) until April 1 2016 when the level will drop slightly to 1.4 ROCs/MWhr for new accreditations - effectively maintains the existing levels for those projects already under construction or approaching financial close.

Helius is currently seeking to secure  project funding for a 100 MegaWatt plant in Avonmouth, Bristol, with the aim of starting construction in the second quarter of 2012, and is progressing a similar scheme in Southampton through the consenting process. 

The company's joint venture Helius CoRDe's 7.2 MW biomass to power plant, which is currently under construction, is outside the scope of this consultation as it is located in Rothes, Scotland.  The plant is due to come onstream in 2013. 

Helius said that the publication marks the start of a consultation period which is due to end on January 12 2012, and that it will play its full part in the process.

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Fri, 21 Oct 2011 08:15:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/28975/helius-energy-welcomes-uk-govt-consultation-on-biomass-energy-support-levels-34634.html
<![CDATA[News - Helius Energy’s £6.6 million premium placing welcomed in the City ]]> https://www.proactiveinvestors.co.uk/companies/news/28499/helius-energys-66-million-premium-placing-welcomed-in-the-city--34056.html

The stockmarket has welcomed yesterday afternoon’s announcement by biomass power plant builder Helius Energy (LON:HEGY) that it plans to raise £6.6 million via a share placing at 16 pence per share. The news has helped to boost interest in the shares both yesterday afternoon and this morning, while broker Northland Capital Partners said that it maintains its ‘buy’ rating for the firm’s shares with a price target of 54 pence each. House broker Ambrian also said the shares were a ‘buy’.

Yesterday, just after the announcement was made, the shares jumped more than 13 per cent to hit 15.9 pence each before falling back to 13.5 pence by the close. But after investors had a night to digest the news, the shares bounced again this morning and were up 9.3 per cent at 14.75 pence each at lunchtime.

Helius said yesterday that a fundraising at a premium to the share price demonstrated the company’s ability to attract investment from a number of high-quality new and existing institutional and other investors.

“I think it’s a cracking result in this market,” said the firm’s chief financial officer, Alan Lyons, when he spoke to Proactive Investors yesterday afternoon. “Most placings done at the moment are at a substantial discount to the share price.”

Lyons pointed out that the placing price was not only achieved at a premium to Helius’s recent share price but it represented a premium to Helius’s average price over the past couple of months.

The funds will be used to strengthen Helius’s balance sheet and provide additional working capital to allow the company to progress its immediate and longer-term pipeline of projects, including seeking to secure: project-level funding for the firm’s Avonmouth power project; and planning consent for its Southampton project.

Lyons said that a key use of the funds will be to bring Avonmouth to the point of financial close, when the firm would expect to receive a fee of around £10 million. In return Helius will be happy to be diluted down to a minority stake in the Avonmouth plant, added Lyons.

In Helius’s statement about the fundraising, Adrian Bowles, Helius’s chief executive officer, commented that the placing “clearly demonstrates that investors have confidence in Helius’s ability to develop high quality projects and the potential to realise value from its portfolio”.

Bowles said that the capital allows the firm to continue to develop a pipeline of other projects, following the financial of Helius’s CoRDe project in Scotland earlier in the year.

Northland Capital Partners commented: “This removes the overhang of an equity fundraising event, which was undoubtedly holding back the share price.”

The broker said that the financial close on Avonmouth “will be another trigger event” that will allow a reappraisal of the valuation of Helius’s portfolio.

Northland also made the point that the names of the new investors could be “just as important”, as was the fact that the placing was done at a premium to the existing market price. “These investors are well known in the business community and provide a strong endorsement of Helius’s strategy,” said the broker. 

Ambrian added that it believed the proposed equity placing gives Helius enough headroom for a further 12 to 18 months. It said this estimate assumed the company does not achieve a development fee for Avonmouth and the earn-out asset from the sales of the firm’s Stallingborough biomass pro

ject, which it sold to RWE in 2008, is not crystallised. “These factors are therefore critical in the company not having to come back to the market before its first operation plant is generating cashflow,” said the broker.

An application will be made to the London Stock Exchange for approximately 40.9 million shares to be admitted to trading on the Alternative Investment Market, and admission is expected to occur on 24 October.


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Thu, 06 Oct 2011 14:32:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/28499/helius-energys-66-million-premium-placing-welcomed-in-the-city--34056.html
<![CDATA[News - UPDATE: Helius Energy’s shares up after it announces plans to raise £6.6 million ]]> https://www.proactiveinvestors.co.uk/companies/news/28459/update-helius-energys-shares-up-after-it-announces-plans-to-raise-66-million-34012.html

Director comment

Biomass power plant builder Helius Energy (LON:HEGY) announced this afternoon that it plans to raise £6.6 million via a share placing at 16 pence per share.

Helius’s shares responded by putting on 13.6 per cent in mid-afternoon trading to hit 15.9 pence. Towards the close of the session, the shares had fallen back to 14 pence.

Helius said that a fundraising at a premium to this morning’s share price demonstrated the company’s ability to attract investment from a number of high-quality new and existing institutional and other investors.

“I think it’s a cracking result in this market,” said the firm’s chief financial officer, Alan Lyons. “Most placings done at the moment are at a substantial discount to the share price.”

Lyons pointed out that the placing price was not only achieved at a premium to Helius’s recent share price but it represented a premium to Helius’s average price over the past couple of months.

The funds will be used to strengthen Helius’s balance sheet and provide additional working capital to allow the company to progress its immediate and longer-term pipeline of projects, including seeking to secure: project-level funding for the firm’s Avonmouth power project; and planning consent for its Southampton project.

Lyons said that a key use of the funds will be to bring Avonmouth to the point of financial close, when the firm would expect to receive a fee of around £10 million. In return Helius will be happy to be diluted down to a minority stake in the Avonmouth plant, added Lyons.

In Helius’s statement concerning the statement this afternoon, Adrian Bowles, Helius’s chief executive officer, commented that the placing “clearly demonstrates that investors have confidence in Helius’s ability to develop high quality projects and the potential to realise value from its portfolio”.

Bowles said that the capital allows the firm to continue to develop a pipeline of other projects, following the financial of Helius’s CoRDe project in Scotland earlier in the year.

An application will be made to the London Stock Exchange for approximately 40.9 million shares to be admitted to trading on the Alternative Investment Market, and admission is expected to occur on 24 October.


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Wed, 05 Oct 2011 16:24:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/28459/update-helius-energys-shares-up-after-it-announces-plans-to-raise-66-million-34012.html
<![CDATA[News - Helius Energy’s shares up after it announces plans to raise £6.6 million ]]> https://www.proactiveinvestors.co.uk/companies/news/28454/helius-energys-shares-up-after-it-announces-plans-to-raise-66-million-34007.html

Biomass power plant builder Helius Energy (LON:HEGY) announced this afternoon that it plans to raise £6.6 million via a share placing at 16 pence per share.

Helius’s shares responded by putting on 13.6 per cent in mid-afternoon trading to hit 15.9 pence.

Helius said that a fundraising at a premium to this morning’s share price demonstrated the company’s ability to attract investment from a number of high-quality new and existing institutional and other investors.

The funds will be used to strengthen Helius’s balance sheet and provide additional working capital to allow the company to progress its immediate and longer-term pipeline of projects, including seeking to secure: project-level funding for the firm’s Avonmouth power project; and planning consent for its Southampton project.

“We are pleased to have secured this significant capital investment in what are tough market conditions for financing,” said Adrian Bowles, Helius’s chief executive officer. “This placing clearly demonstrates that investors have confidence in Helius’s ability to develop high quality projects and the potential to realise value from its portfolio.”

Bowles continued: “We believe that biomass energy is becoming an increasingly important part of the UK’s energy mix. The capital raised allows us to continue to develop our pipeline of other projects which follows the achievement of financing Helius’s CoRDe Project in Scotland earlier this year.”

An application will be made to the London Stock Exchange for approximately 40.9 million shares to be admitted to trading on the Alternative Investment Market, and admission is expected to occur on 24 October.


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Wed, 05 Oct 2011 14:46:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/28454/helius-energys-shares-up-after-it-announces-plans-to-raise-66-million-34007.html
<![CDATA[News - Helius raises £1 million from director and slims down its board ]]> https://www.proactiveinvestors.co.uk/companies/news/25577/helius-raises-1-million-from-director-and-slims-down-its-board-30531.html Northland Capital Partners welcomed today’s announcement from Helius Energy (LON:HEGY) that the firm had raised a further £1 million and made cost-saving changes to its board of directors.

Independent broker Northland said the board changes would save around £150,000 per annum and lead to quicker decision making.

Earlier today Helius said it had raised around £1 million through a combined debt and equity deal with one of its non-executive directors, Angus MacDonald.

Helius explained that the new funds would be used to help it deliver its portfolio of biomass-powered electricity plant projects, beginning with the 100 megawatt Avonmouth plant on the Bristol Channel.

The company also announced a number of changes to its board in order to reduce its operating costs. Chairman Keith Henry has stepped down, while non-executive directors David Brocksom and Barclay Forrest have also left their positions (although Forrest had already announced his plans to retire in 2010). John Seed, former chief executive and a current non-executive director, becomes the new chairman.

MacDonald increased his holding in Helius from 19.12 percent to 24.12 percent following the issue of 4,360,674 new shares at 16 pence each, which raised £697,707 for the business. In addition, MacDonald is also providing an unsecured loan to Helius of £302,300.

Seed is to continue with the detailed review that is designed to fund ways to maximise value from the company’s portfolio of operations.

“Helius has demonstrated its capability to deliver major biomass energy projects such as CoRDe and Stallingborough, creating significant value for the Company and its investors,” Seed said. “Following the major achievement of the start of construction on the CoRDe project, Angus’s further investment, combined with the improvements in our use of funds, will allow us to continue to deliver our portfolio of projects, starting with Avonmouth.”

Corde is a 7.2MW project in Scotland with the Combination of Rothes Distillers, while Stallingborough is a 65MW net capacity biomass plant located in Lincolnshire.

Northland Capital Partners described today’s developments as “positive” for Helius. “For a small company with a lean structure it had a top heavy board structure with unnecessary costs and the announced board changes address this issue,” said the broker. “A much trimmer management structure will mean annual cost savings around £150,000 and quicker decision making.”

Northland added that the funding would help with short term operational costs and help bridge any gap until a deferred payment is received from the sale of its Stallingborough plant. (Helius sold the Stallingborough to RWE Inogy in 2008 and it is awaiting an upfront cash payment of £8.8 million from RWE).

Northland said the share deal announced today and the change in board structure “does concentrate more votes with one powerful director and shareholder”, but conceded that this was “already the de facto case”.

“The management now need to realise the value in its portfolio for its shareholders,” Northland added. “The next major event will be the announcement of financial close for Avonmouth which is now the principal focus for the remainder of [the 2011 financial year]. Our forecasts remain unchanged and our recommendation is a ‘buy’, with a price target of 54 pence.” 

Northland expects an adjusted pre-tax loss of £2.1 million from Helius for the current financial year to 30 September, increasing to £2.7 million next year.

By 10:05am today, Helius’s shares were higher by 3.5 percent at 14.1 pence each.

 

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Tue, 12 Jul 2011 10:10:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/25577/helius-raises-1-million-from-director-and-slims-down-its-board-30531.html
<![CDATA[News - Helius Energy raises £1 million in funds from director ]]> https://www.proactiveinvestors.co.uk/companies/news/25564/helius-energy-raises-1-million-in-funds-from-director-30517.html  

Helius Energy (LON:HEGY) said today it had raised around £1 million through a combined debt and equity deal with one of its directors.

Helius explained that the new funds would be used to help it deliver its portfolio of biomass-powered electricity plant projects, beginning with the 100 megawatt Avonmouth plant on the Bristol Channel.

The company also announced a number of changes to its board in order to reduce its operating costs. Chairman Keith Henry has stepped down, while non-executive directors David Brocksom and Barclay Forrest have also left their positions (although Forrest had already announced his plans to retire in 2010). John Seed, former chief executive and a current non-executive director, becomes the new chairman.

Angus MacDonald, a non-executive director, has increased his holding in Helius from 19.12 percent to 24.12 percent following the issue of 4,360,674 new shares at 16 pence each, which raised £697,707 for the business. In addition, MacDonald is also providing an unsecured loan to Helius of £302,300.

Seed is to continue with the detailed review that is designed to fund ways to maximise value from the company’s portfolio of operations.

"Helius has demonstrated its capability to deliver major biomass energy projects such as CoRDe and Stallingborough, creating significant value for the Company and its investors,” Seed said.

“Following the major achievement of the start of construction on the CoRDe project, Angus’s further investment, combined with the improvements in our use of funds, will allow us to continue to deliver our portfolio of projects, starting with Avonmouth."

Corde is a 7.2MW project in Scotland with the Combination of Rothes Distillers, while Stallingborough is a 65MW net capacity biomass plant located in Lincolnshire.

 

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Tue, 12 Jul 2011 07:31:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/25564/helius-energy-raises-1-million-in-funds-from-director-30517.html
<![CDATA[News - Helius Energy “undervalued”, says Numis ]]> https://www.proactiveinvestors.co.uk/companies/news/25005/helius-energy-undervalued-says-numis--29868.html Helius Energy (LON:HEGY), the biomass energy expert, looks ‘fundamentally very substantially undervalued”, according to house broker Numis.

Earlier this month the group reported interim results showing a net loss of £1m, slightly higher than Numis’ expectations of £700,000. Cash consumption over the first half at £3.5m was also ahead of the broker’s expectation of around £2.7m.

Capex meanwhile came in at £2.9m versus £3m in all of its 2010 year, mainly due to investment in keys projects in Southampton and Rothes, Scotland.

While the group is expected to needs further funding to continue its ongoing developments as planned, it has been making progress, most notably by getting Rothes into construction.

Helius revealed in April that it had secured funding for the Rothes plant, which aims to generate 7.2MW of energy. The plant will take biomass products from the malt whisky manufacturing process and convert them into renewable electricity and animal feeds protein supplement in a combined heat and power plant.

Rothes is expected to save around 46,000 tonnes per year of carbon dioxide compared to a similarly sized coal-fired facility.

Numis understands Rothes is progressing well, albeit it is still at an early stage.

The broker notes that progress is also continuing to be made at Avonmouth, where it wants to build a biomass plant that 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.

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

The Avonmouth project is now progressing towards supplier and contractor contracts (finalising towards the end of the year), and Helius intends to mandate banks and to identify an equity partner at project level - a similar structure to the one it used for Rothes in a deal with Rabo Project Equity.

The deal with Rabo provided Helius with £42.5m of debt along an  equity investment of £9.3m at project level by Rabo in return for a 44.3% stake in Rothes, with Helius retaining control of the operating company set up for the venture.

Numis notes that Rabo's investment in Rothes implies a value for Helius's stake of

£10.5m, versus a market cap for the company of £12m. This appears to imply almost no value for the company’s other assets including Avonmouth and Southampton.

“Although the requirement for cash is a material uncertainty going forward, the shares look fundamentally very undervalued,” says Numis, rating the stock a buy, with a target price of 37p.

Midday, Helius shares stood unchanged at 14 pence.

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Mon, 27 Jun 2011 13:08:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/25005/helius-energy-undervalued-says-numis--29868.html
<![CDATA[News - Northland retains 54 pence target price for Helius Energy ]]> https://www.proactiveinvestors.co.uk/companies/news/24850/northland-retains-54-pence-target-price-for-helius-energy-29686.html  

Northland Capital Partners responded to yesterday’s interim results from Helius Energy (LON:HEGY) by reiterating its ‘buy’ stance and 54 pence target price for the biomass energy firm’s shares.

Helius reported an increase in its pre-tax loss to £955,000 for the six months to the end of March, compared with £589,000 for H1 2010.

A fall in income from interest payments as the firm’s cash balance declines as a result of further investment in biomass projects explained some of the loss. Balance sheet cash stood at £6.6 million at 31 March, compared with £10.1 million just six months earlier.

But Northland said that everything at Helius is proceeding according to plan. “These interim results contain no surprises,” said the broker’s analyst Simon Miller. “Admin expenses remain under control, share based payments were £175k higher and financial income is declining due to the reduced cash balance as further investments are made.”

Miller pointed out that all Helius projects are still in the development stage, a point at which no revenue should be expected.

“The key milestones have been reaching financial close on the CoRDe project at Rothes in April, securing debt and equity finance at project level and the subsequent commencement of construction,” he added. “The next major event will be the announcement of financial close for Avonmouth which is now the principal focus for the remainder of [the 2011 financial year]. Our forecasts remain unchanged and our recommendation is a buy, with a price target of 54 pence.”

Shares in Helius were down some six percent at 12.7 pence each by 10:40am today.

 

 

 

 

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Wed, 22 Jun 2011 11:07:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/24850/northland-retains-54-pence-target-price-for-helius-energy-29686.html
<![CDATA[News - Helius Energy stays on track with biomass projects ]]> https://www.proactiveinvestors.co.uk/companies/news/24808/helius-energy-stays-on-track-with-biomass-projects-29630.html Helius Energy (LON:HEGY) saw interim losses widen but the group assured development of its portfolio of projects continues apace, with its key Rothes biomass plant in Scotland on track to commence operation in 2013.

Pre-tax losses for the six months to March 2011 came in at £955k compared with a loss of £589k last time, with the increased loss attributed mainly to an increase in non cash share payment charges of £175k and a reduction in the level of interest received.

The results include the benefit of a £414k increase in the value of an earn-out relating to the sale of its Stallingborough biomass project in September 2008 for £28m to RWE’s renewable energy division, RWE Innogy.

Helius believes that the cash provided by this accelerated payment of the Stallingborough earn-out will strengthen its ability to develop and finance additional biomass projects.

Net cash outflow over the half year was £3.5m, of which £2.9m was invested in projects, compared with a net cash outflow of £1.9m for the corresponding period in the previous year.

The increase in cash outflow was primarily due to costs associated with its proposal for a 100MW biomass fuelled generating station in Southampton, unveiled August 2010, and costs associated with reaching financial close for Rothes.

The cash balance at the end of March stood at £6.6m, down from £12.8m a year ago, of which £4.8m was committed, after the period end, to Rothes.

Helius revealed in April that it had secured funding for the Rothes plant, which aims to generate 7.2MW of energy. The plant will take biomass products from the malt whisky manufacturing process and convert them into renewable electricity and animal feeds protein supplement in a combined heat and power plant.

Rothes is expected to save around 46,000 tonnes per year of carbon dioxide compared to a similarly sized coal-fired facility.

Today the company said Rothes has started construction.

Management is now focused on raising sufficient additional debt and equity over the remainder of the current year to allow it to continue to progress its other projects, including Avonmouth.

There the company wants to build a biomass plant that 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.

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

The Avonmouth 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.

Mid-afternoon Helius Energy shares were off 0.13p to 15.38p.

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Tue, 21 Jun 2011 14:34:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/24808/helius-energy-stays-on-track-with-biomass-projects-29630.html
<![CDATA[News - Helius Energy awards construction contracts for Scottish biomass plant ]]> https://www.proactiveinvestors.co.uk/companies/news/23037/helius-energy-awards-construction-contracts-for-scottish-biomass-plant--27480.html Helius Energy (LON:HEGY) today announced it has awarded construction contracts worth more than £44 million for the development of its £60.5 mln biomass plant in Scotland.

It comes just days after the firm announced the financial close of the deal - known as the 'CoRDe' project - which is located at Rothes, Morayshire. It will generate up to 7.2 Megawatts.

CoRDe is a JV company between Helius Energy, Rabo Project Equity BV and The Combination of Rothes Distillers Limited.

The plant will take biomass co-products from the malt whisky manufacturing process and convert them into renewable electricity and animal feeds protein supplement (Pot Ale Syrup) in a combined heat and power plant (CHP plant).

Electricity will be exported to the local network.

The contracts have been awarded to:

- Fichtner Consulting Engineers Ltd, which will act as engineering employers representative to assist Helius with the delivery of the project on behalf of the company.

- Aalborg Energie Technik A/S (AET), which will design, supply, erect and commission the Biomass CHP plant.

- Robertson Northern Ltd will undertake civil works, provide the underlying infrastructure for the CHP plant and associated equipment and principal contractors role for  the project.

- Wellman Process Engineering Ltd will provide evaporation equipment which will enable the production of Pot Ale Syrup.

Helius said it will provide management services support to the CoRDe project from the beginning of construction and through the operational phases of the project.

Helius CEO Adrian Bowles said: "Announcing the implementation of these key contracts so quickly after achieving financial close demonstrates our commitment to delivering this project on time.  We are confident that we have the right partners in place to ensure we achieve this."

The plant is expected to begin commercial operation in the first half of 2013. The project will create approximately 100 jobs during construction and employ around 20 people full-time once operational.

The company also  announced that the following parties have been contracted under long term arrangements:

- Electricity and associated renewable benefits will be sold to npower Ltd and delivered via the local electricity network under a long term power purchase agreement.

 - Wood fuel will be supplied from sustainable sources, including from Stobart Biomass Products Ltd

- Pot Ale Syrup will be sold by CoRDe through KW Trident (AB AGri Ltd), a subsidiary of Associated British Foods.

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Tue, 19 Apr 2011 07:37:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/23037/helius-energy-awards-construction-contracts-for-scottish-biomass-plant--27480.html
<![CDATA[News - Northland calls Helius' biomass plant funding deal 'the news the market has been waiting for' ]]> https://www.proactiveinvestors.co.uk/companies/news/22941/northland-calls-helius-biomass-plant-funding-deal-the-news-the-market-has-been-waiting-for-27363.html Northland Capital Partners reacted positively to Helius Energy's (LON:HEGY) news today, which confirmed the funding for its £60.5 million biomass plant in Scotland, saying "this should be the news the market has been waiting for".

Analyst Simon Miller commented: "Helius management has proved it can deliver a project to this stage. This should boost the share price."

Northland said its forecast remained unchanged and that its recommendation remained "sector outperform with a price target of 54p."

The project - known as the 'CoRDe' project - is located at Rothes, Morayshire and will generate up to 7.2 Megawatts of renewable electricity.

It will take biomass co-products from the malt whisky manufacturing process and convert them into renewable electricity and animal feeds protein supplement (Pot Ale Syrup) in a combined heat and power plant (CHP plant), reported Helius earlier.

It is expected to save around 46,000 tonnes per year of carbon dioxide compared to a similarly sized coal-fired facility. Construction is due to begin within 12 weeks.

Helius had previously announced a project finance facility from Lloyds TSB Bank plc (LBG) and the Royal Bank of Scotland (RBS) for the project and confirmed today that Rabo Project Equity BV ("Rabo"), a 100 percent subsidiary of Rabobank Group, had acquired equity in the CoRDe joint venture company.

Ownership of CoRDe now comprises Helius, Rabo, and the combination of Rothes Distillers Limited ("CoRD") - a joint venture between Ben Riach Distillery Co Ltd, Chivas Brothers Ltd (Pernod Ricard), The Edrington Group, Glen Grant Distillery Co Ltd (Campari) , Inverhouse Distillers (ThaiBev), Diageo and John Dewar & Son (Bacardi).

Under the financing, LBG and RBS will provide a senior debt facility of approximately 70 percent (representing around £42.4mln), Rabo will take a 44.7 per cent (-1 share) stake in the project company and CoRD will retain 5.3 percent.

Helius will hold a majority position with 50 percent (+1 share) of the shares for an additional equity investment of around £4.2 million.  Helius and CoRD have invested circa £4.6 million of development funding to date that has been capitalised within the £60.5 million capital cost.

Helius Energy is a developer of biomass-fired renewable electricity generation plants at sizes ranging from around seven megawatts to 100MW.

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Thu, 14 Apr 2011 11:23:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/22941/northland-calls-helius-biomass-plant-funding-deal-the-news-the-market-has-been-waiting-for-27363.html
<![CDATA[News - Helius confirms funding for £60.5mln scottish biomass plant ]]> https://www.proactiveinvestors.co.uk/companies/news/22928/helius-confirms-funding-for-605mln-scottish-biomass-plant-27349.html Helius Energy (LON:HEGY) today confirmed the funding for its £60.5 million biomass plant in Scotland, which will generate up to 7.2 Megawatts of renewable electricity.

The project - known as the 'CoRDe' project - is located at Rothes, Morayshire.

It will take biomass co-products from the malt whisky manufacturing process and convert them into renewable electricity and animal feeds protein supplement (Pot Ale Syrup) in a combined heat and power plant (CHP plant).

It is expected to save around 46,000 tonnes per year of carbon dioxide compared to a similarly sized coal-fired facility. Construction is due to begin within 12 weeks.

CEO of Helius Adrian Bowles said: "We are delighted that the CoRDe project is moving forward.

"Securing full financing confirms the ability of the Helius team to successfully develop, structure and fund biomass projects, crystallising long term shareholder value."

The plant is scheduled to be commissioned during Q3 2012 and fully operational during the first half of 2013. It will employ around 20 full time people, said Helius.

The company had previously announced a project finance facility from Lloyds TSB Bank plc (LBG) and the Royal Bank of Scotland (RBS) for the project and confirmed today that Rabo Project Equity BV ("Rabo"), a 100 per cent subsidiary of Rabobank Group, had acquired equity in the CoRDe joint venture company.

Ownership of CoRDe now comprises Helius, Rabo, and the combination of Rothes Distillers Limited ("CoRD") - a joint venture between Ben Riach Distillery Co Ltd, Chivas Brothers Ltd (Pernod Ricard), The Edrington Group, Glen Grant Distillery Co Ltd (Campari) , Inverhouse Distillers (ThaiBev), Diageo and John Dewar & Son (Bacardi).

Under the financing, LBG and RBS will provide a senior debt facility of approximately 70 per cent (representing around £42.4mln), Rabo will take a 44.7 per cent (-1 share) stake in the project company and CoRD will retain 5.3 per cent.

Helius will hold a majority position with 50% (+1 share) of the shares for an additional equity investment of around £4.2 mln.  Helius and CoRD have invested circa £4.6 mln of development funding to date that has been capitalised within the £60.5mln capital cost.

Bowles added: "Helius is working with potential partners to pursue similar equity funding arrangements for our other projects, including our 100MW consented site at Avonmouth, where we are also currently in discussion with debt finance providers.  Further updates will be provided in due course."

Helius Energy is a developer of biomass-fired renewable electricity generation plants at sizes ranging from around seven megawatts to 100MW.

The firm is involved in several projects and its long-term aim is to be an owner/operator of 500MW worth of power plant assets.

The company is focused on the 100 megawatt (MW) Avonmouth biomass plant, located on the Bristol Channel, a 7.2MW project in Scotland with the Combination of Rothes Distillers (CoRDe) and another 100MW biomass plant proposed for Southampton.

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Thu, 14 Apr 2011 07:37:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/22928/helius-confirms-funding-for-605mln-scottish-biomass-plant-27349.html
<![CDATA[News - Northland Capital initiates Helius Energy coverage with outperform rating ]]> https://www.proactiveinvestors.co.uk/companies/news/22073/northland-capital-initiates-helius-energy-coverage-with-outperform-rating-26338.html Northland Capital Partners has initiated coverage of Helius Energy (LON:HEGY), stating that its assets are undervalued by the market.

The broker’s sum of the parts valuation suggested a base case value of £47.5 million or 54 pence per share, which was set as the price target along with an outperform rating.

This compares favourably with the stock’s current value of 17.25 pence.

Helius Energy is a developer of biomass-fired renewable electricity generation plants at sizes ranging from around seven megawatts to 100MW.

The firm is involved in several projects and its long-term aim is to be an owner/operator of 500MW worth of power plant assets.

The company is focused on the 100 megawatt (MW) Avonmouth biomass plant, located on the Bristol Channel, a 7.2MW project in Scotland with the Combination of Rothes Distillers (CoRDe) and another 100MW biomass plant proposed for Southampton.

Northland said that Helius’ story was a simple one as its biomass power station projects use proven technology, have an established market for the power they generate and are not weather dependent, meaning that their cash flows are “reasonably predictable”.

CoRDe has received credit approval from Lloyds and RBS for project finance of up to 75% of the total cost with construction due to start in Q2 2011. Northland called this an important milestone, which should trigger revaluation.

Avonmouth is fully consented and bank financing talks are progressing with Helius, estimating that it will need to spend a further £1.5 million to get to financial close, which Northland called a major milestone for the project, stating that Helius has adequate cash resources to get CoRDe to construction and Avonmouth to financial close.

“The project finance structure will see 50% of the equity retained in CoRDe and up to 25% in Avonmouth. This will make it unlikely that Helius will need to raise further significant amounts of equity finance at this stage,” said Northland.

The broker is projecting Helius to make revenues of £6.7 million in 2013.

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Mon, 14 Mar 2011 12:28:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/22073/northland-capital-initiates-helius-energy-coverage-with-outperform-rating-26338.html
<![CDATA[News - Helius Energy may cash in on Rothes project now its has project financing in place - Ambrian ]]> https://www.proactiveinvestors.co.uk/companies/news/21502/helius-energy-may-cash-in-on-rothes-project-now-its-has-project-financing-in-place-ambrian-25637.html Helius Energy (LON:HEGY) will need around £14 million to develop the Rothes biomass plant in Morayshire, according to Ambrian Capital analyst Gurpreet Gujral.

Alongside a consortium of Scotch whisky companies - known as The Combination of Rothes Distillers – Helius is developing a biomass power plant that will generate up to 7.2 megawatts of renewable electricity capacity. The power will be sold into the local network.

Yesterday the company confirmed that it had secured 75 percent of total funding for the project.

The Helius CoRDe joint venture company received approval for non-recourse project finance from the Royal Bank of Scotland (LON:RBS) and Lloyds Banking Group (LON:LLOY).

“Obtaining debt financing for any infrastructure project is a key hurdle, especially during these economic times. 

“Given that Helius has overcome this hurdle, we believe the project is significantly de-risked, which implicitly increases its value - even before construction begins,” Gujral said in a note to clients.

The analyst reckons the project will cost about £50 million (capex) to develop, therefore the banks will put up around £36 million leaving Helius needing to find £14 million for its equity investment.

Gujral said that Helius might sell its stake in the project at this stage – and take early profits now - like it did with the Helius Alpha project or it may reduce its equity stake to raise the capital.

It sold Helius Alpha, a subsidiary that owned the 65 megawatt Stallingborough plant plant near Hull, to RWE Energy’s renewable arm RWE Innogy for an initial £28.14 million, back in September 2008. The deal was struck before construction had even begun and Helius is set for a further £8.8 million payment once RWE signs the first major equipment supply contract for the construction of the Stallinborough plant.

Alternatively the analyst said that Helius could fund its stake in the project from its own balance sheet, however Gujral doubts this is a likely outcome as it already has a strong pipeline of other projects that are growing in maturity. 

Gujral adds: “We believe Helius represents a good value investment opportunity. 

“Its current market cap is below its cash position and the value of an earn-out asset which should be realised this year. 

“The market is thus discounting the value of Helius CoRDe and Helius Avonmouth - a 100 megawatt biomass plant which received regulatory approval last year.”

 

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Thu, 17 Feb 2011 14:51:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/21502/helius-energy-may-cash-in-on-rothes-project-now-its-has-project-financing-in-place-ambrian-25637.html
<![CDATA[News - Helius Energy secures project financing deal for Rothes biomass plant ]]> https://www.proactiveinvestors.co.uk/companies/news/21463/helius-energy-secures-project-financing-deal-for-rothes-biomass-plant-25589.html Helius Energy’s (LON:HEGY) proposed biomass project in Rothes, Morayshire in Scotland, has taken a major step forward.

Today the Royal Bank of Scotland (LON:RBS) and Lloyds Banking Group (LON:LLOY) approved an application for project financing.

Alongside a consortium of Scotch whisky companies - known as The Combination of Rothes Distillers – Helius will develop a biomass power plant that will generate up to 7.2 megawatts of renewable electricity capacity. The power will be sold into the local network.

"The project represents a significant step forward for Helius and its distillery partners,” Helius chief executive Adrian Bowles said.

“We all look forward to getting this project constructed and into commercial operation at the earliest opportunity".

The Helius CoRDe joint venture company applied for the financing required to build and commission the plant.

It has now received approval for a non-recourse project finance credit facility, whereby Llyods and RBS will provide up to 75 percent of the total funding.

Pre-construction work is already underway and on-site works are expected to start in the spring. The project is slated to begin commercial production in the second quarter of 2013.

 

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Wed, 16 Feb 2011 13:54:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/21463/helius-energy-secures-project-financing-deal-for-rothes-biomass-plant-25589.html
<![CDATA[News - Helius Energy projects undervalued by the market - Edison ]]> https://www.proactiveinvestors.co.uk/companies/news/20962/helius-energy-projects-undervalued-by-the-market-edison-24975.html Edison Investment Research issued a report on Helius Energy (LON:HEGY), saying it does not believe that the market currently accords sufficient value to the group’s biomass-fuelled power generation projects.

In its view Helius could be worth around 68 pence per share - significantly higher than its current share price of just over 20p.

Edison said Helius’s results for 2010, reported yesterday, were in line with the research house’s expectations apart from the non-cash adjustment to the value of  minus £3.8 million net of the Stallingborough earn-out following the renegotiation of its terms.

The renegotiated sale and purchase Agreement with RWE allows Helius to receive an upfront cash payment of £8.8 million as soon as RWE awards contracts and commences construction of the project, rather than having to wait to receive 13 percent of Stallingborough’s after tax profits spread over a 24 year period. This will afford Helius greater financial flexibility in the development of its project portfolio, Edison said.

Helius is in late stage due diligence on its 7.2 MegaWatt Rothes project in Scotland. During the course of the year the company achieved Section 36 consent and deemed planning permission for its Avonmouth (100MW) plant and signed an option for a site in Southampton where it plans to build another 100MW plant.

Helius remains bullish on the prospects for biomass generation and believes it has sufficient resources to expand its portfolio: it expects to add a further 200MW of capacity to its existing portfolio of projects being consented/developed over the next two years.

Edison concluded: “We use a SOTP-based analysis for valuing Helius. Our analysis indicates that at current levels the market is valuing only the cash on the balance sheet and the Stallingborough earn-out. Our base case valuation of Helius suggests that the company could be worth 68p/share.”

Numis Securities featured Helius in its 'Morning Meeting Notes' today, noting there was "little material news on project development with Helius's finals".  "We continue to believe that there is material value creation opportunity from the UK biomass market, and that Helius shares offer very good value."  Numis has a 34p price target on the stock.

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Wed, 26 Jan 2011 13:05:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/20962/helius-energy-projects-undervalued-by-the-market-edison-24975.html
<![CDATA[News - Helius kicks off Avonmouth project finance discussions as it unveils a year of progress ]]> https://www.proactiveinvestors.co.uk/companies/news/20907/helius-kicks-off-avonmouth-project-finance-discussions-as-it-unveils-a-year-of-progress-24911.html Helius Energy (LON:HEGY) said it expects to begin discussions with providers of project finance for its Avonmouth power station, which received planning consent last year.

Based at the Port of Bristol, the 100 megawatt renewable energy plant will generate electricity using biomass.  

The Rothes project in Scotland, meanwhile, is a stage further developed. The contracts for the detailed engineering, procurement and construction of the plant, the grid connection, fuel supply and power sales are being finalised and these are currently being reviewed as part of the project finance due diligence process.

It will use distillery residues and wood fuel to generate 7 megawatts of renewable electricity for sale and provide 13 tonnes of steam per hour.

Separately, the company has signed an option to lease a 20-acre site at the Port of Southampton for another 100 MW operation.

Chairman Keith Henry said: "We expect the prospects for biomass energy projects in the UK continue to grow over the long-term and Helius remains well positioned to build upon its previous success. Helius has secured planning consents for 170MWe of biomass capacity to date."

The update was given as the group reported results for the 12 months to September 30. They showed the company had cash of £10.1 million as of that date.

Helius was however loss-making to the tune of £6.2 million, though only £2.6 million of that figure was related to operating costs. It booked a write-down of £3.8 million related to a change in the terms of an earn-out deal it has with German generator RWE.

It is important to point out that the RWE write-downs are paper losses, and in fact Helius expects that the recently re-negotiated deal will help it develop additional biomass projects.

Helius sold the Stallingborough project to RWE for £28.14 million back in 2008. The deal also gave Helius a 13 percent profit share for the first 24 years of the plants life. The group had valued this profit sharing deal at £12.3 million.

Last week Helius agreed revised terms whereby it will waive its share of future profits, in return for a cash payment of £8.8 million once RWE moves Stallinborough into construction – when it orders the major equipment for the bio-mass plant.

After the news, City broker Matrix released an in-depth research report in which it also highlighted that both Helius and RWE could benefit from the UK government’s electricity-market reform (EMR).

“RWE, like other utilities, is delaying investment decisions in the UK until it has clarity on electricity-market reform (EMR), which should come in a White Paper in April,” Matrix analyst  Steven Fawkes said in a note to clients.

“If, as expected, the EMR results in a carbon floor price and capacity charges, it should work in favour of low carbon-dispatchable plant, such as the Helius projects, and would increase the probability of RWE proceeding with Stallingborough and payment of the £8.8 million. 

“In addition, it should increase the value of other similar projects Helius has in development.” 

While he acknowledged that decision-making in the utility sector is slow, Fawkes gave a bullish view on the bio-mass specialist.

As the electricity market stands Fawkes values the company at 75 pence per share - including the RWE payment which he values at 9 pence, Avonmouth valued at 47 pence the CoRDe joint venture in Scotland worth 7 pence, plus its cash which is worth 12 pence per share.

The Southampton port biomass project is not included in the Matrix valuation.

Furthermore even with a conservative valuation, applying 50 percent probablility, the analyst gives Helius a 43 pence valuation – more than double its current market price of 21 pence per share.

Fawkes adds: “Helius continues to create value, but the long cycle of large power-station development means that realisation of value is a long-term exercise. 

“We continue to see long-term value in Helius.”

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Tue, 25 Jan 2011 07:44:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/20907/helius-kicks-off-avonmouth-project-finance-discussions-as-it-unveils-a-year-of-progress-24911.html
<![CDATA[News - Helius set for revised £8.8 mln payment from RWE Innogy ]]> https://www.proactiveinvestors.co.uk/companies/news/20719/helius-set-for-revised-88-mln-payment-from-rwe-innogy-24700.html  

Helius Energy (LON:HEGY) will receive an £8.8 million payment earlier than expected, relating to the Stallingborough biomass project it sold back in September 2008.

The AIM-listed firm sold the project - as part of the disposal of the Helius Alpha subsidiary - in a deal with RWE’s renewable energy division, RWE Innogy.

At the time the biomass project was still an early stage and RWE has been developing the project since then.

The deal was worth an initial £28.14 million, with the first £22.5 million paid up-front.

This afternoon Helius told investors that the share purchase agreement, associated with the deal, has been amended to allow the early crystallisation of the deferred consideration provisions.

“Helius considers that this amendment represents a good opportunity for it to realise value prior to commercial operation,” the company said.

The deferred consideration has been revised to £8.8 million and it will be payable once the first major equipment supply contract is signed for the construction of the Stallinborough plant.

 

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Tue, 18 Jan 2011 12:31:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/20719/helius-set-for-revised-88-mln-payment-from-rwe-innogy-24700.html
<![CDATA[News - Helius Energy’s Avonmouth biomass project boosted by Court of Appeal decision ]]> https://www.proactiveinvestors.co.uk/companies/news/19651/helius-energys-avonmouth-biomass-project-boosted-by-court-of-appeal-decision-23443.html Helius Energy (LON:HEGY) can move forward with the Avonmouth biomass project unabated, following a decision by the Court of Appeal.

Today, the Court of Appeal refused to give the Coedbach Action Team (CAT) permission to appeal against the proposed power plant and it is not possible for CAT to progress its application any further.

The CAT’s protests have grumbled on for some time - after the proposal initially received government consent back in March 2010. 

Helius is building the biomass power plant at Avonmouth Dock on the Bristol Channel.

Coedbach is a group of residents initially formed to oppose power station developments in Swansea and the Coedbach area of Wales.

CAT failed in its legal challenge against the proposal in September.

Later the High Court in Cardiff refused to grant CAT permission to apply for a judicial review of the project. The campaigners subsequently applied to the Court of Appeal, and today this was also refused.

Helius has held a confident position throughout.

“Helius continues to believe that there are no valid grounds for a judicial review of the Secretary of State's earlier decision awarding the Avonmouth Consent or for a reversal of the High Court's decisions,” the company said in October.  

When built, the Avonmouth plant 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. 

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.

 

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Mon, 29 Nov 2010 14:35:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/19651/helius-energys-avonmouth-biomass-project-boosted-by-court-of-appeal-decision-23443.html
<![CDATA[News - Numis says Helius Energy’s shares have been overlooked ]]> https://www.proactiveinvestors.co.uk/companies/news/19091/numis-says-helius-energys-shares-have-been-overlooked-22816.html Helius Energy (LON:HEGY) is a credible play on biomass energy development and its shares have been overlooked by investors, says Numis Securities analyst Will Wallis.

The analyst initiated his coverage on Helius with a ‘buy’ rating and a 41 pence per share, sum-of-parts valuation for the company.

In a note entitled ‘Bright Spark’ the analyst said that Helius has a very solid track record in the development of biomass power stations in the UK.

“The shares appear to have been overlooked, trading on a 25% discount to NAV despite strong historic value creation and, we think, good prospects for significant further value-added,” Wallis said. 

“Improvements in the UK support regime for biomass made in 2009 should in our view encourage development of biomass into a meaningful part of the UK energy mix”. 

“We think there is a significant opportunity for project developers.”

“Our base case valuation is 41p per share (+62%), with substantial further potential in an upside scenario.”

The analyst highlighted that Helius banked a £32 million profit on the sale of the 65 megawatt Stallingborough project in 2008, and it is now developing projects at Avonmouth (100 megawatts) and Rothes (7 megawatts). It also announced plans for a 100 megawatt project in Southampton recently. 

“While there are a number of competitors looking to develop biomass power stations in the UK, we think that Helius has developed and earned a good reputation in the industry.” 

“Helius can continue with a strategy of selling projects at the pre-construction stage, or could look to raise part or all the equity required to build projects thus looking to retain a greater proportion of project NPV,” Wallis added. 

“We expect further early-stage projects to be announced in due course.”

 

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Mon, 08 Nov 2010 14:07:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/19091/numis-says-helius-energys-shares-have-been-overlooked-22816.html
<![CDATA[News - Helius says 'no valid grounds' for appeal against Avonmouth biomass plant ]]> https://www.proactiveinvestors.co.uk/companies/news/18136/helius-says-no-valid-grounds-for-appeal-against-avonmouth-biomass-plant-21958.html Helius Energy (LON:HEGY) believes there are no valid grounds for the appeal against its proposed Avonmouth biomass project on the Bristol Channel.

The Coedbach Action Team (CAT) initially lodged its appeal last week, after a failed legal challenge in September, when the High Court in Cardiff refused to grant CAT permission to apply for a judicial review of the project.

The company this morning confirmed that the CAT has applied to the Court of Appeal for permission to appeal both the judicial review judgment and the refusal to grant a Protective Cost Order.

Helius originally received planning permission for the Avonmouth power station back in March.

“Helius continues to believe that there are no valid grounds for a judicial review of the Secretary of State's earlier decision awarding the Avonmouth Consent or for a reversal of the High Court's decisions,” the company said.

Coedbach is a group of residents initially formed to oppose power station developments in Swansea and the Coedbach area of Wales.

When built, the Avonmouth plant 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.

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. The company is considering a number of options to progress the scheme, including the participation of industrial and financial partners.

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Tue, 12 Oct 2010 08:20:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/18136/helius-says-no-valid-grounds-for-appeal-against-avonmouth-biomass-plant-21958.html
<![CDATA[News - Renewable energy demand offers significant growth potential for Helius Energy, says Edison ]]> https://www.proactiveinvestors.co.uk/companies/news/17615/renewable-energy-demand-offers-significant-growth-potential-for-helius-energy-says-edison-21126.html Edison Investment Research has issued a bullish note on Helius Energy (LON:HEGY), saying that as the UK’s only pure biomass generator, the company could capitalise on the significant demand for renewable energy.

As per the research house’s estimates, the share price could be three times the current 25 pence, which at the moment gives it a market cap of £22 million.

Edison stated that the biomass generation market is experiencing significant growth and Helius has every chance to capitalise on it. The expansion of the market is due to the UK’s growing demand of alternative sources of energy and biomass generation is well placed to satisfy that need, said Edison.

The broker added that the current share price does not reflect that the company’s management team has demonstrated that it is able to create value by developing biomass projects.

As an example, the report cited the sale of the Stallingborough project to RWE for £41 million within three months of receiving permission.

“We believe that Helius, with its managerial expertise, proven track record of value creation and sound finances is well placed to play a substantial role in the deployment of biomass in the UK,” Helius said in the report.

As for the Avenmouth biomass plant project, Edison noted that environmental group Coedbach Action Team, whose challenge to revoke the planning permission for the project was rejected, had the right to appeal. However, the broker said that it expected the project to proceed and did not rule out a realisation of at least a part of its value.

The report concluded that at the current levels the market only valued the cash on the balance sheet and the Stallingborough earn-out.

Helius has £12.7 million in cash. Edison predicts the cash balance to be at £10 million at the end of September.

Helius Energy identifies, develops, owns and builds biomass generation plants in the UK. Historically the projects have ranged from 7MW (mega watt) to 100MW, though Edison said that they are likely to be at the upper end of that range in future.

Helius expect to reach financial close on a 7MW project at Rothes in Scotland later this year and possibly raise its stake to 90%.

According to Edison, once Rothes and Avonmouth commence operation, in 2013 and 2014 respectively, “a more predictable stream of revenue should begin to emerge.”

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Fri, 17 Sep 2010 11:27:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/17615/renewable-energy-demand-offers-significant-growth-potential-for-helius-energy-says-edison-21126.html
<![CDATA[News - Helius Energy says Avonmouth protestors fail in legal challenge ]]> https://www.proactiveinvestors.co.uk/companies/news/17530/helius-energy-says-avonmouth-protestors-fail-in-legal-challenge-21023.html Helius Energy (LON:HEGY) can finally press on with its plans for a biomass plant at Avonmouth Dock on the Bristol Channel after protestors failed with a last ditch legal challenge.

The High Court in Cardiff refused the Coedbach Action Team permission to apply for a judicial review of the project.

Coedbach is a group of residents initially formed to oppose power station developments in Swansea and the Coed Bach area of Wales.

Helius originally received planning permission for the power station back in March.

When built, the plant  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. 

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. The company is considering a number of options to progress the scheme, including the participation of industrial and financial partners.

Helius develops, installs and operates biomass-fired renewable electricity generation plants at sizes ranging from five megawatts to 100MW. The company is currently involved in several projects.

The company successfully developed a 65MWe power plant at Stallingborough, South Humberside, which was sold at pre-construction stage to RWE Innogy. Helius also has a 7.2MWe project in Morayshire, centred on distillery residues for fuel.

 

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Wed, 15 Sep 2010 08:56:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/17530/helius-energy-says-avonmouth-protestors-fail-in-legal-challenge-21023.html
<![CDATA[News - Helius Energy plans to build Biomass power plant at Port of Southampton ]]> https://www.proactiveinvestors.co.uk/companies/news/16668/helius-energy-plans-to-build-biomass-power-plant-at-port-of-southampton-20061.html Helius Energy (LON:HEGY) plans to build a 100MWe (Megawatt equivalent) biomass fuelled power plant on the South Coast. The company announced that it has signed an option to lease a 20 acre site in the Port of Southampton for the power plant.

According to Helius, the biomass plant will contribute to the ‘South East Plan’ objective to cut carbon emissions by 20% before 2020.

"Securing this site at Southampton for our proposed 100MWe renewable energy power plant is an important addition to our strong portfolio of sites”, Helius chief executive Adrian Bowles commented. “This is a further step on the way to delivering Helius' strategy to develop, own and operate a portfolio of biomass projects."

Once operational, the plant will require around 700,000 tonnes of sustainably sourced, biomass feedstock per annum. The company said that a significant proportion of the feedstock will come through the Port of Southampton.

The company noted that the option, from the Associated British Ports, is subject to the receipt of a ‘Development Consent Order’, under the Planning Act 2008. Helius intends to submit an application to the relevant authorities, and it will shortly begin consultations with the local community and the authorities.

The Southampton Port biomass plant will be a similar size to the Avonmouth plant being developed to the west, on the Severn Estuary. Earlier this year, the company was granted planning permission to construct the 100MW facility at Avonmouth.

The Avonmouth project is expected to 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 regular coal-fired power station. Helius has already secured the required grid asset rights to allow the electricity from the project to go directly into the local network.

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Mon, 16 Aug 2010 07:32:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/16668/helius-energy-plans-to-build-biomass-power-plant-at-port-of-southampton-20061.html
<![CDATA[News - Helius Energy appoints largest shareholder Angus MacDonald as non-exec director ]]> https://www.proactiveinvestors.co.uk/companies/news/14210/helius-energy-appoints-largest-shareholder-angus-macdonald-as-non-exec-director-17278.html Helius Energy (LON:HEGY) has appointed founder and chairman of integrated waste management company Specialist Waste Recycling Ltd Angus MacDonald to the board as a non-executive director and as a member of the company’s audit and remuneration committees.


Before founding Specialist Waste Recycling in 2007, MacDonald served as Chief Executive of eFinancial Group for 11 years, which was sold to Dow Jones and Dice for £79 million. He was also a director of Noble Group Limited until 2007 and of Glenshian Limited until 2006 and is currently a director of Roshven Restorations Limited.


Mr MacDonald and his wife hold a 19.15% stake in Helius and are currently the largest shareholders in the company.


“(MacDonald’s) business experience and considerable knowledge of the environmental sector will be extremely useful to Helius as we continue to develop our portfolio of projects,” said Chairman of Helius Keith Henry.


The company simultaneously announced new long-term incentive arrangements for the Company's directors and employees, proposing that long term incentive plan (LTIP) be granted to selected executive directors and employees annually over the next three years subject to meeting specified performance criteria. Awards will normally be exercisable between the vesting date and the fifth anniversary of the date of grant, rather than delivering shares automatically on the vesting date.


LTIP awards may also be made to the Company Chairman and non-executive directors under a separate NED Plan.


Back in April, Helius reported substantial operational progress during the six months to 31 March 2010, which included the receipt of planning consent for the 100 MW (megawatt) Avonmouth biomass-fuelled power station project in Bristol. The project is expected to 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 regular coal-fired power station.

Helius has already secured the required grid asset rights to allow the electricity from the project to go directly into the local network.

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Fri, 04 Jun 2010 13:44:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/14210/helius-energy-appoints-largest-shareholder-angus-macdonald-as-non-exec-director-17278.html
<![CDATA[News - Helius Energy’s largest shareholder MacDonald increases stake to 19.15% ]]> https://www.proactiveinvestors.co.uk/companies/news/13102/helius-energys-largest-shareholder-macdonald-increases-stake-to-1915-16011.html Helius Energy (AIM: HEGY) told investors that its largest shareholders, Mr and Mrs Angus MacDonald, have bought a further 2 million shares in the company, taking the total stake to approximately 16.6 million shares, representing 19.15% of Helius’ issued share capital.

Angus MacDonald is the executive chairman of Alton-headquartered SWR Waste Management. MacDonald formed SWR in 2007, when he acquired automotive waste disposal specialist Oakside Environment Ltd.

Last week, in its H1 results, Helius reported substantial operational progress during the six months to 31 March 2010, which included the receipt of planning consent for the 100 MW (megawatt) Avonmouth biomass-fuelled power station project in Bristol.

The Avonmouth project is expected to 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 regular coal-fired power station. Helius has already secured the required grid asset rights to allow the electricity from the project to go directly into the local network.

Elsewhere, the company is currently completing negotiations over the key contracts for the Rothes biomass-fuelled power station project in Scotland, having received a number of term sheets from debt providers and expecting to appoint banks shortly, which will be followed by lender due diligence and financial close.

Other sites for further biomass schemes in the UK are currently being identified, reviewed and secured. The company expects to announce a further scheme later this year.

“Helius has made good progress over the last six months, including securing consent for a new 100MWe biomass power plant in Avonmouth.  We maintain a strong cash position, which enables us to continue the development of our project portfolio, and I expect to be able to announce a further scheme later this year,” said chief executive of Helius Adrian Bowles.

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Tue, 27 Apr 2010 15:36:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/13102/helius-energys-largest-shareholder-macdonald-increases-stake-to-1915-16011.html
<![CDATA[News - Helius Energy maintains cost control in H1 2010, secures consent for 100MW Avonmouth project ]]> https://www.proactiveinvestors.co.uk/companies/news/12836/helius-energy-maintains-cost-control-in-h1-2010-secures-consent-for-100mw-avonmouth-project-15705.html During the first half, Helius Energy (AIM: HEGY) has managed to achieve substantial operational progress, which included the receipt of planning consent for the 100 MW (megawatt) Avonmouth biomass-fuelled power station project in Bristol.

The project is expected to 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 regular coal-fired power station. Helius has already secured the required grid asset rights to allow the electricity from the project to go directly into the local network.

The company is currently completing negotiations over the key contracts for the Rothes biomass-fuelled power station project in Scotland , having received a number of term sheets from debt providers and expecting to appoint banks shortly, which will be followed by lender due diligence and financial close.

Other sites for further biomass schemes in the UK are currently being identified, reviewed and secured. The company expects to announce a further scheme later this year.

On the financial front, administrative expenses rose to £1.2 million for the six months to 31 March 2010 compared to £0.8 million a year ago, while cash balance stood at £12.8 million, down from £16.8 million at the end of H1 2009. The increase in administrative expenses was due to additional expenditure related to identifying and evaluating new sites.

Helius posted a net loss of £0.6 million compared to a small profit of £18,875. Investments for the period totalled £1.2 million.

Helius offered a positive outlook, saying it was pleased with the progress achieved at the Avonmouth project and with future sites.

“Helius has made good progress over the last six months, including securing consent for a new 100MWe biomass power plant in Avonmouth.  We maintain a strong cash position, which enables us to continue the development of our project portfolio, and I expect to be able to announce a further scheme later this year,” said chief executive of Helius Adrian Bowles.

Broker Astaire Securities agreed with that view, saying that headline numbers at this stage were less important than the progress made in building its portfolio of biomass fuelled generating assets. The report noted the company’s control over its administrative expenses and focus on investments into new projects such as the Avonmouth power station.

Earlier this month, 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.

Helius has retained the right to receive 13% of the plant’s annual net profit over the next 24 years of operation.

Matrix Group was even more positive on the company, highlighting the fact that Helius has a stake in a project being constructed by RWE valued at £12.8 million, which could increase futher as energy prices climb, a consented 100MW project with a conservative value of £40m, a smaller project with a conservative value of £6 million nearing financial close, an active pipeline, the leading biomass development team in the country and £12.8 million in cash, while the company’s market cap currently stands at just £26 million.

“The market is effectively valuing two consented projects, one of 100MW, at zero – at a time when there is an impending power crisis and continued pressure to build renewable projects,” said Matrix in today’s note.

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Mon, 19 Apr 2010 10:26:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/12836/helius-energy-maintains-cost-control-in-h1-2010-secures-consent-for-100mw-avonmouth-project-15705.html
<![CDATA[News - Helius Energy set to benefit as RWE’s Stallingborough biomass power station approved ]]> https://www.proactiveinvestors.co.uk/companies/news/12535/helius-energy-set-to-benefit-as-rwes-stallingborough-biomass-power-station-approved-15365.html 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.

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Thu, 08 Apr 2010 16:16:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/12535/helius-energy-set-to-benefit-as-rwes-stallingborough-biomass-power-station-approved-15365.html
<![CDATA[News - Helius Energy soars after UK govt grants consent for Avonmouth biomass power plant ]]> https://www.proactiveinvestors.co.uk/companies/news/12152/helius-energy-soars-after-uk-govt-grants-consent-for-avonmouth-biomass-power-plant-14924.html Shares in Helius Energy PLC (AIM: HEGY) soared today after the alternative energy generator announced it received consent from Department for Energy and Climate Change, for the construction of a 100MWe (MegaWatt electrical) biomass-fuelled power station located at Avonmouth Dock on the Bristol Channel.

Helius stock rose after the news was released at midday and was still trading nearly 16 percent higher in early afternoon deals.

The 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, it said in a statement. 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. 
Helius develops, installs and operates biomass-fired renewable electricity generation plants at sizes ranging from five megawatts to 100MW. The company is currently involved in several projects.

The company successfully developed a 65MWe power plant at Stallingborough, South Humberside, which was sold at pre-construction stage to RWE Innogy. Helius also has a 7.2MWe project in Morayshire, centred on distillery residues for fuel.

The 100MWe Avonmouth project represents the latest development in the Helius project pipeline.  The company is currently considering a number of options to progress the scheme, including the participation of industrial and financial partners.

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Fri, 26 Mar 2010 13:53:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/12152/helius-energy-soars-after-uk-govt-grants-consent-for-avonmouth-biomass-power-plant-14924.html
<![CDATA[News - Helius Energy: filling the energy gap ]]> https://www.proactiveinvestors.co.uk/companies/news/10466/helius-energy-filling-the-energy-gap-13017.html The UK’s electricity needs have long been achieved by a combination of (largely) coal, gas and nuclear power plants. Renewable power projects currently contribute a small percentage of the overall requirement, but that is set to change thanks to plans to decommission several coal and nuclear power plants during the next decade.

While peak demand currently accounts for around 65 gigawatts of the electricity that the UK’s energy network is capable of generating, this is set to head towards 70GW during the next decade as the country’s electricity-generating capacity falls below 60GW due to the closure of old plants (source: E.ON).

The fact is that all kinds of electricity-generating assets are going to have to be employed by 2015 if the UK is to have any chance of meeting expected demand. Meanwhile, the government is keen to promote renewable power as a way of filling the ‘energy gap’ as a key part of its drive to meet its EU carbon emission targets.
Of course, all of this is good news for renewable power firms like Helius Energy.

The government’ Renewables Obligation provides Renewables Obligation Certificates for Biomass plants for the first 17 years of operation, so this provides a sizeable income stream for projects such as those that Helius develops.

Helius develops, installs and operates biomass-fired renewable electricity generation plants at sizes ranging from five megawatts to 100MW. The company is currently involved in several projects.

Helius’s flotation on London’s Alternative Investment Market in January 2007 helped it to raise funds to develop its Stallingborough site – a 65MW biomass plant on the south side of the Humber estuary in Lincolnshire. Helius received planning permission for the site in early 2008, and then successfully sold the project on to RWE Innogy UK – a wholly-owned subsidiary of German power utility RWE.

As part of the deal, in which Helius made a profit of around £20m the Group will also receive 13% of the annual profits after tax generated by the plant during the first 24 years of its operation (this profit was valued by the company at £14.3m in September 2008).


This ‘build and sell’ business model is helping Helius fund its other projects, such as at Avonmouth (although the company says it does not intend to sell this project). Here, the company has secured an 18-acre site for the development of a 100MW biomass power plant and it received support for the project from Bristol City Council during the summer.

Analysts who follow the company believe that Section 36 approval under the Electricity Act 1989 (required for the project to go ahead) could occur early 2010. If it does, then the go-ahead decision should add more than 30 pence to Helius’s share price, according to independent broker Ambrian.

Of course, one-off projects like Stallingborough and Avonmouth make for a rather lumpy and unpredictable revenue stream for Helius. But the company is mitigating this – not only through the practice of securing a portion of future income from profits produced at the larger-scale plants it builds, but also through the sale of its GreenSwitch-branded small-scale biomass powered plants.

The GreenSwitch plants are rated between 5MW and 8MW and they are designed to be located where sustainable and renewable feedstocks are readily available, so that there is no need to transport wet feedstocks.

Helius has a joint venture with the Combination of Rothes Distillers (CoRD) in Scotland. The JV, called Helius CoRDe, will build and operate a £50m renewable energy scheme designed to reduce the carbon footprint of the whisky industry on Speyside.
The project will use whisky distillery by-products to fuel a 7.2MW biomass combined heat and power plant. Meanwhile, a separate plant – which Helius has branded GreenFields (see below) – will turn pot ale (the liquid co-product of whisky production) into a concentrated organic fertilizer and an animal feed for use by local farmers.

The project has already won an award: it was named ‘Best Environmental Initiative’ at the Scottish Green Energy Awards last December. And Helius’s managing director, John Seed, believes that the project will serve as a model that the company can roll out elsewhere.

At the end of August, Helius revealed that it had formed a strategic alliance with the water division of France’s Veolia Environnement – one of the world’s leading environmental services firms.

The two companies have agreed to jointly develop Helius’s GreenFields membrane technology, which turns distillery by-products into organic fertiliser. Veolia Water will help to fund existing and future GreenFields development costs and projects.


Traditionally, distillery by-products such as wet grain, draff and pot ale have been dried for use as animal feed using an energy-intensive process. GreenFields membrane technology takes these by-products and produces what the company describes as a “highly effective” biomass fuel for renewable energy plants, as well as other products.

Helius’s most recent set of results, covering the six months to 31 March 2009, showed it made an operating loss of £328,000 (H1 2008: £1.1m loss) on revenues of £554,000 (H1 2007: £0).

The company is debt free, but its long-term plans involve the use of debt and equity financing in order to fund projects. So future growth is dependent on the credit and equity markets and potential investors should be aware of this.


As well as the Stallingborough, Avonmouth and Rothes projects, Helius has identified a dozen other projects that have potential to add value to the business and which it is currently evaluating.

Forecasts estimate that Helius is set to be loss making for the next couple of years. But the company appears to be building the projects and alliances it needs to see it through to handsome profits in the long term.

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Fri, 05 Feb 2010 10:24:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/10466/helius-energy-filling-the-energy-gap-13017.html
<![CDATA[News - Helius Energy names UK Coal FD Brocksom non-exec director ]]> https://www.proactiveinvestors.co.uk/companies/news/8597/helius-energy-names-uk-coal-fd-brocksom-non-exec-director-10819.html Helius Energy PLC (AIM: HEGY), which installs and operates biomass-fired renewable electricity generation plants, said it appointed David Graham Brocksom as a non-executive director with immediate effect.

Brocksom is currently finance director at UK Coal PLC (LSE: UKC).  Previously he was finance director at entertainment technology provider Avesco, which was followed by the CFO role at Pace Micro Technology PLC. He then spent a short period as interim commercial director of Principal Hotels Ltd.

Matrix Corporate Capital, the research and brokerage arm of the Matrix Group, last week named Helius as one of several stocks to watch when the expected UK power crisis starts to bite. Matrix is forecasting power supply/quality problems in the UK in the next five to ten years, as coal-fired power capacity goes offline and alternatives are unlikely to step in on time.

In August 2009, the company entered into a strategic alliance with Veolia Water Outsourcing which will see Veolia Water jointly fund existing and future Greenfields projects secured by Helius Energy.  Greenfields is a membrane technology which uses by-products from certain processes to produce organic soil condition, animal feed and biomass fuel for renewable energy plants.

Also in August, Helius inked a deal with a distillery in Scotland to use wet grain, draff and pot ale waste to produce animal feed, and biomass fuel for a renewable power plant.  Under the strategic alliance with Veolia Water, Helius will supply the technology, while Veolia will operate the project.

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Tue, 01 Dec 2009 13:54:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/8597/helius-energy-names-uk-coal-fd-brocksom-non-exec-director-10819.html
<![CDATA[News - Helius Energy among stocks to watch when UK energy crisis starts to bite – Matrix ]]> https://www.proactiveinvestors.co.uk/companies/news/8343/helius-energy-among-stocks-to-watch-when-uk-energy-crisis-starts-to-bite-matrix-10544.html Matrix Corporate Capital, the research and brokerage arm of the Matrix Group, is forecasting power supply/quality problems in the UK in the next five to ten years, as coal-fired power capacity goes offline and alternatives are unlikely to step in on time.


In a note, Matrix said it sees three groups of companies that should benefit from the UK power situation over the next three years; conventional power generators, developers of renewable projects, and companies with products and services aimed at increasing energy productivity. 


Among its preferred stocks in these sectors are Helius Energy PLC (AIM: HEGY), which is engaged in installing and operating biomass-fired renewable electricity generation plants, ranging in capacity from 5-8 MegaWatts to 60 MWs, and Energetix (AIM: EGX),  a specialist in commercialisation of intellectual property and technical product development of alternative energy products.


The broker said the UK electricity system is facing a potential crisis over the next five to ten years due to the enforced retirement of around 25 percent of capacity, mainly nuclear and large coal fired plant.  Current government policy is based on ten new nuclear power stations, the first coming on-stream by 2018, and around 33 GigaWatts of offshore wind capacity coming on-stream by 2020.  “We consider both of these targets unlikely to be achieved and therefore see a high risk of power supply/quality problems in the next five to ten years,” Matrix said.


Offshore wind faces a number of constraints including; increasing capex per MW, reliability in a harsh marine environment and concerns about the supply chain such as large offshore rated turbine supply, installation vessels, export cabling and skill shortages.  Nuclear power faces issues of licensing, cost and time over-runs, skill shortages and ultimately supply of uranium.


The broker believes that there is a high risk of the UK reserve margin falling below 20 percent by 2015 and strong economic recovery could push this milestone forwards to 2012/13.  It expects power price rises and increases in power price volatility as a result of increasing pressure on the supply margin.


“We expect to see additional policy measures to incentivise capacity investment, irrespective of which party wins the next election, in order to try to resolve this problem.  We also expect to see more large corporates investing in power supply projects directly in order to guarantee supply as well as increased investment in energy efficiency and energy services.”


Power generator Drax Group PLC (LSE: DRX) is also on the list of Matrix’s preferred stocks. The operator of the Drax coal-fired power station in North Yorkshire has a longer term strategy of investing in dedicated biomass-fired power generation and plans to make an investment decision on the first plant before the end of 2010.

The list also features International Power PLC (LSE: IPR), which has interests in more than 45 power stations around the world, landfill gas and windpower group Novera Energy PLC (AIM: NVE) which earlier this year received planning permission for a 10-12.5 MW windfarm in Scotland, and Renewable Energy Generation (AIM: RWE), which owns and operates UK and Canadian wind farms and generates UK power from refined, used vegetable cooking oil through three operating companies.

Finally, Matrix will be eying with interest Zenergy Power (AIM: ZEN), a developer and maker of high efficiency industrial and renewable energy devices employing superconductor technologies, and Gas Turbine Efficiency (AIM: GTE), which specialises in high-pressure gas turbine cleaning systems for the internal cleaning of gas turbine compressors.

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Tue, 24 Nov 2009 12:25:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/8343/helius-energy-among-stocks-to-watch-when-uk-energy-crisis-starts-to-bite-matrix-10544.html
<![CDATA[News - Helius Energy signs strategic alliance with Veolia Water ]]> https://www.proactiveinvestors.co.uk/companies/news/5760/helius-energy-signs-strategic-alliance-with-veolia-water-7669.html Biomass to power company, Helius Energy (AIM: HEGY), released another significant update this morning, reporting that it had entered into a strategic alliance with Veolia Water Outsourcing (website).


Veolia is no small fry, with annual revenues of €36 billion last year and over 300,000 employees, it is a leading water, waste, energy and transport solutions provider.


The strategic alliance will see Veolia Water jointly fund existing and future Greenfields® projects secured by Helius Energy.  Greenfields® is a membrane technology which uses by-products from certain processes to produce organic soil condition, animal feed and biomass fuel for renewable energy plants.


Helius Energy recently inked a deal with a distillery in Scotland to use wet grain, draff and pot ale waste to produce animal feed, and biomass fuel for a renewable power plant.  Under the strategic alliance with Veolia Water, Helius will supply the technology, while Veolia will operate the project.


John Seed, Managing Director of Helius, said:
'We are delighted to have formed a strategic alliance with Veolia Water. Its position as a market leader in industrial water processing will help GreenFields® access a much wider range of projects and industries which could benefit from this low-carbon technology.'


David Wright, a Director of Veolia Water Outsourcing Ltd and Managing Director of Veolia Water Industrial Outsourcing Ltd said:
 'The team at Veolia Water is very excited to work with Helius Energy under this strategic alliance. We believe GreenFields® will allow us to reduce water and carbon footprints for our clients as well as providing them with a long-term sustainable solution to environmental pressures that the industry faces.

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Fri, 28 Aug 2009 12:57:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/5760/helius-energy-signs-strategic-alliance-with-veolia-water-7669.html
<![CDATA[News - Helius forms JV to create biomass plant fuelled by Scottish whisky by-products ]]> https://www.proactiveinvestors.co.uk/companies/news/5497/helius-forms-jv-to-create-biomass-plant-fuelled-by-scottish-whisky-by-products-7353.html Helius Energy PLC (AIM: HEGY) said it is forming a joint venture with The Combination of Rothes Distillers (CoRD) in Speyside, North Scotland, to create a £50 million biomass combined heat and power plant fuelled by distillery by-products.

The venture, called Helius CoRDe, will use whisky distillery by-products to fuel a 7.2 MWe GreenSwitch modular biomass power station and operate a facility using the  GreenFields process to turn the liquid co-product of whisky production, known as Pot Ale, into a concentrated organic fertiliser and an animal feed for use by local farmers.

Helius CoRDe builds on the ongoing cooperation between the company and CoRD. It will create a dedicated company which will be responsible for the financing, construction and operation of the new plant.

Helius expects engineering procurement and construction contracts to be awarded shortly, allowing construction to begin in early 2010, with around two years for construction and building, which is likely to generate between 20 and 100 jobs.

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Mon, 17 Aug 2009 14:01:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/5497/helius-forms-jv-to-create-biomass-plant-fuelled-by-scottish-whisky-by-products-7353.html
<![CDATA[News - Biomass company Helius Energy joins AIM ]]> https://www.proactiveinvestors.co.uk/companies/news/467/biomass-company-helius-energy-joins-aim-0785.html
Helius Energy (AIM: HEGY) listed on AIM today with the ambition to install and operate biomass fired renewable electricity generation plants. £2.035 million (gross) was raised by way of placing 7.826 million shares at 26p per share. This represented 11.3% of the enlarged share capital giving the company a market capitalisation just shy of £18 million.

Helius will focus on the UK and Southern Africa where it plans to install and operate biomass energy plants that will burn a range of biomass feedstock including residues from bio-ethanol production. The company already holds a 3-year option on a 36 hectare site located on the south side of the Humber Estuary and also holds an eighteen-month option to acquire a site adjacent to an existing power plant on the north side of the Tees Estuary. Both sites are in industrial zones located close to existing transport routes and have grid access nearby.

Helius are also looking to develop a range of smaller plants (5 Megawatts) in the UK.
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The shares got off to a strong start climbing 70% from the IPO price to 45p.
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Wed, 31 Jan 2007 12:21:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/467/biomass-company-helius-energy-joins-aim-0785.html