REH Reveals Setback in CWE’s Garden Island Project (Australia)

Renewable Energy Holdings plc (REH) has issued its Interim Report for the six months to 30 June 2012 with the following statement from the company’s chairman, Sir John Baker:

Since announcing our results for the year ended 31 December 2011, we have been pursuing the strategy of disposing of our assets, in an orderly fashion, for the reasons then given. At the same time, we have taken steps to reduce our overhead expenditure and have laid out plans to cut costs further in the future, most notably in head office costs (including directors’ salaries), which will be commensurate with the significantly reduced levels of activity in the business.

We have had enquiries on our permitted wind project in Kobylany and a number of interested parties have conducted due diligence. However, the Polish wind energy market had, until July this year, faced considerable uncertainty in relation to government policy on the Polish tariff regime. This was addressed in a recent government announcement indicating the creation of a stable tariff regime, and this appears to be having a positive impact on the market. We are engaged in active discussions with a number of potential acquirers and, whilst there can be no guarantee of concluding a deal, we remain confident that we will be able to realise shareholder value.

We have now completed our planning application for the 81MW wind farm development in Wales and are currently in the final consultation stage. We will need to incorporate the consultees’ responses into our application and will then hope to file the application with the Major Infrastructure Planning Unit by the end of this calendar year.

As previously announced we have reduced our shareholding in Carnegie Wave Energy (“CWE”) to approximately 10 per cent. Due to a lack of capital to develop the CETO wave energy device, to prove commercial viability, there have been delays in the development of Carnegie’s Garden Island site, but the Board of CWE has indicated that it remains confident that the project will be completed. The REH Board shares this view and is considering the distribution of our remaining holding of CWE shares in-specie to REH shareholders or such return of assets to shareholders that is deemed appropriate.

The Board remains committed to realising the best value for shareholders from our assets, and reducing to the practical minimum the time and expense of completing the disposal programme. 

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Press release, September 28, 2012; Image: Carnegie Wave Energy