React Energy releases financial results, acquires thermal assets
U.K.-based React Energy plc has released financial results for the six months ended Dec. 31, reporting progress with development of its Enfield Biomass project. The company also recently announced the acquisition of certain assets and business of GG Eco Solutions Ltd., a developer and operator of biomass heat generation projects in the U.K.
React Energy reported group revenue of €100,000 ($137,890) for the six-month period. Administrative costs were €740,000 and the loss for the period from continuing operations was €1 million.
In its financial results, the company reported that significant progress has been made in bringing the 12-MW Enfield Biomass combined-heat-and-power (CHP) project toward financing close. Construction is currently expected to begin during the second half of this year. According to React Energy, it assisted the Foresight Group in acquiring the site for the project on behalf of a fund managed by the Foresight Group and signed a new lease for the project. React Energy has also signed a legal option and agreement for lease with the London & Devonshire Trust regarding a site for a 10 MW biomass CHP project in Plymouth.
On March 6, the company announced it acquired certain assets and business of GG Eco Solutions through a newly incorporated wholly owned subsidiary, Grass Door Ltd. According to React Energy, GG Eco Solution’s strong pipeline and relations in the biomass sector, combined with its plants that are already operational, positions it as a leader in the mid-market biomass power generation sector in the U.K. React Energy also indicated that its board is currently considering additional strategic bolt-on acquisitions in the mid-market biomass sector that includes plans ranging from 500 kW to 20 MW in capacity.
GG Eco Solutions began operations in the U.K. market in 2009. Since that time, the company has been the project developer, part owner and operators of two biomass power plants in the U.K. It also has five prices in development, which are expected to be built over the next year. The projects generally range in size from 150 kW to 1 MW thermal capacity, and include several installations that serve schools.