Bord na Móna plc. is pleased to announce that it has agreed terms with E.ON UK plc. to purchase all of the shares of Edenderry Power Limited and Edenderry Power Operations Limited (collectively “Edenderry Power”). It is anticipated that the transaction will be completed by the end of December 2006 following receipt of required regulatory consents.
The consideration to be paid by Bord na Móna is expected to be in the region of €80 million and will be financed from existing cash resources.
Edenderry Power operates a 120 megawatt peat fired electricity generating station in Co. Offaly for which Bord na Móna is the sole peat supplier. Commissioned in 2000, the station has a remaining operational life of at least 25 years. While it is currently fuelled solely by peat, its technical design will facilitate co-fuelling with bio-mass and help meet the need for diversity of fuels within the electricity generating sector, as highlighted in the recent government Green Paper “Towards A Sustainable Energy Future for Ireland”.
John D. Hourican, Managing Director of Bord na Móna commented: “This transaction represents an important first milestone for Bord na Móna in the implementation of our, government approved, strategy of diversification and expansion from our existing strong business base by entering the Power Generation and Waste Management sectors. In particular the power plant is well run, low cost and operated by a highly motivated team and I am pleased that this acquisition will give the Bord na Móna Group the opportunity to pursue its’ objective of co-fuelling the station with bio-mass, a renewable indigenous fuel source.”
“Bord na Móna is committed to building a substantial presence in the Power Generation sector on the island of Ireland with a major focus on indigenous, sustainable and renewable energy sources. The Group is also committed to developing through emerging technologies such as Hydrogen and Solar. This objective will be addressed by investment in related R&D and through partnership with Industry exemplars. Bord na Móna is already a major shareholder in the first commercial Wind Farm in Ireland and has full planning for a large 320MW Wind Farm in County Mayo.”
He added: “At Bord na Móna, we believe that reducing the country’s dependence on imported fossil fuels is of paramount importance. Extending the life of the nation’s fuel peat resources through co-fuelling with bio-mass will be an important step in achieving the necessary reduction. Bord na Móna’s focus on wind energy is another important avenue in reducing this dependence.”
Keith Plowman, Director of Development and Construction at E.ON UK, said: “we believe this is an excellent deal for both parties and for the staff, as well as providing Bord na Mona with an excellent opportunity to expand its bio-mass aspirations.”
For further information please contact:
Paddy Duffy, Frances Stokes,
The Right Word. Bord na Móna plc.
Tel: (01) 475 3928 Tel: (045) 439 222