Stock Market Wire: Helius welcomes greater clarity on biomass subsidies21/10/2011
Biomass specialist Helius Energy (LON:HEGY) has put out a statement welcoming the greater clarity provided by the publication by the Department for Energy and Climate Change of its consultation document on levels of banded support under the Renewables Obligation legislation for the period 2013-17.
The Company's management are of the opinion that the proposal for dedicated biomass banding - to retain the existing support level of 1.5 Renewable Obligation Certificates per megawatt hour (ROCs/MWhr) until 1 April 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 a project funding package for a 100MWe 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 7.2MWe 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.
According to the Company biomass generation projects provide baseload renewable power for the grid and have a substantial role to play in cutting the country's overall carbon emissions.
The Company notes that the publication marks the start of a consultation period which is due to end on 12 January 2012. Helius will play its full part in the consultation process.