Kedco agrees deal in North

Cork-headquartered alternative energy specialist, Kedco has signed a deal in the North that could see it develop a major 25MW electricity and heat generation plant in Derry.

The AIM-listed ‘waste- to-energy’ group said yesterday that it has signed a heads of terms with Londonderry Port & Harbour Commissioners regarding a new biomass project with a capacity of up to 25MW.

The project could provide energy for 25,000 houses.

The deal gives Kedco an option to lease a 10-acre site, located at ‘Londonderry Dock’, for the proposed construction of the plant. The project site is located in a strategic area of Derry’s port, which already contains the 400MW ESB Coolkeeragh gas-fired power plant and another biomass project which has received planning permission.

Kedco now expects to sign a binding option agreement before the end of March, following which it will begin the planning process.

In a portfolio update issued yesterday Kedco said that it has also started planning consultation for a 4MW extension to its Newry Biomass project with the submission due to be lodged by the end of June. It also hopes to bring its 500KW Altilow wind energy project in Co Donegal into full operation by the middle of 2014.

Commenting on the overall progress, Kedco’s chief executive Gerry Madden said the announcement “clearly demonstrates the progress and opportunities available to the company in the renewable energy sector”.

“Following the commissioning of the Newry Biomass project, the company has had a number of approaches from various parties with a view to developing new renewable energy projects.

“The Londonderry Port project is the first such project, and we’re delighted to have signed heads of terms.

“Similar interest and approaches from local businesses, requesting increased amounts of renewable energy, have also led to the company to seek to double the capacity of our Newry Power Plant,” he added.

The Newry plant could serve the energy needs of around 7,000 houses.