Alkane Energy acquires Yorkshire Power site

ALKANE Energy has acquired the 10 megawatt Wheldale power response facilities in West Yorkshire from energy giant SSE for £1.5m.

Nottinghamshire-based Alkane, an independent clean technology gas-to-power company, said the initial consideration for the acquisition is worth £1.1m in cash, with a £400,000 deferred cash payment to be paid on October 31.

Lester Wilson, Leeds-based corporate partner with law firm DWF, led a team that advised Alkane on the deal.

The company said the deal gives it a 10 megawatt site with a current installed engine capacity of 7.5 megawatts, bringing its total power response capacity to 37.5 megawatts and total overall capacity to 90 megawatts.

Alkane said that in order to fund the acquisition, it has increased its banking facilities with Lloyds Bank by £1m, with the balance being covered through group cashflow.

Power response facilities add necessary energy to the UK national grid in times of crisis or peak load running.

Alkane Energy shares were up 5.7% to 46.5p on news of the deal yesterday.

Neil O’Brien, CEO of Alkane Energy, commented: “Alkane continues to invest in new facilities as the UK electricity market faces increased risk of an energy gap over the coming years. We continue to seek growth opportunities such as today’s acquisition of SSE’s 7.5MW power response facilities at Wheldale, Yorkshire.”