ENERGY DEVELOPMENTS ACQUISITION DRIVES GROWTH
Written on the 23 April 2014
ENERGY Developments Limited (ASX:ENE) has finalised its acquisition of New South Wales-based power station company, Envirogen.
ENE’s total installed generation capacity will increase to more than 850MW, after securing the alternative to fossil fuels provider.Managing director Greg Pritchard says the deal forms part of the company’s growth plans and affirms its market position.
“It makes use of funds raised as part of the successful $50 million equity placement concluded in February this year, in addition to other available sources of funding, which has also funded the upstream LNG (liquefied natural gas) Assets announced in February.”He says the full year combined earnings per share accretion is expected to be more than six per cent.
The strategic move will expand ENE’s waste coal mine gas power generation capacity to more than 250MW, making the company a top player in the clean energy and methane abatement sector.ENE will also be able to take advantage of Envirogen’s existing ties with blue chip global miners, Glencore Xstrata Coal and Vale.
“We see further potential for growth in the waste coal mine gas sector, because we offer customers unparalleled solutions for methane abatement, clean embedded power solutions and network support services and we look forward to working with Glencore Xstrata Coal and Vale,” Pritchard says.Envirogen has four WCMG stations, including Oaky Creek Coal Mine in Queensland and Tahmoor Colliery, Teralba Colliery and Glennies Creek Coal Mine in New South Wales.