Alkane extends energy supply contract
Alkane Energy, the profitable alternative energy company, has announced a 18-month extension to its tolling agreement with energy supply company, GDF SUEZ Energy UK. The contract should generate revenues of about £300,000 during the first year for Edwinstowe-based Alkane Energy.
Alkane Energy entered into its first tolling contract with GDF SUEZ in 2009. The extension will last until March 2012. The tolling contract has allowed Alkane to use excess generating capacity at the company's Shirebrook and Markham sites by generating power using conventional natural gas as fuel.
The new contract will now combine peak operations with the existing arrangements. The agreement also expands capacity to 10MW which Alkane Energy says is expected to result “in an approximate doubling in revenues from this source during 2011”.
Neil O'Brien, chief executive of Alkane Energy said: "We are very pleased to have extended our tolling contract to include peak loading and this demonstrates our strong relationship with GDF SUEZ. We have jointly appraised our operational capacity and have found new ways of increasing revenue and cash generation from these assets."
