Launch of La Française de l’Énergie’s Gas to Power Activity in Northern France
07 Novembre 2016 - 8:15AM
Business Wire
La Française de l’Énergie (LFDE) is pleased to announce the
launch of its gas to power activity following the French
government’s gazetting on the 4th of November 2016 of the feed-in
tariff for green electricity produced from coal mine methane
(CMM).
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This decision is a clear recognition of the significant
contribution by La Française de l’Energie towards reducing the
carbon footprint in Northern France by generating clean, green
electricity locally while preventing the release of gas present in
former coal mines into the atmosphere.
The gas to power activities will be undertaken by LFDE’s
subsidiary, Gazonor SAS, which currently holds 225 BCF of 2P
reserves of gas alone.
Gazonor is expected to generate 85 GWh and over €6m annual
revenues through the installation of gas engines with an installed
gross capacity of 9 MW across four sites in Northern France for a
total investment of €8.9 million, including infrastructure and site
preparation. The objective is to have all four sites in full
electricity production by 30 June 2017 and thereafter add
additional sites for electricity sales.
The financing will be arranged through infrastructure-type
financing in line with our IPO plan.
The feed-in tariff details
On the 4th of November the French government released the final
details of the 15 year feed-in tariff granted for electricity
produced from coal mine methane, the gas captured in former coal
mines. This activity helps in reducing the carbon footprint of
Northern France by preventing the release of this gas into the
atmosphere and hence qualifies as green energy.
The key characteristics of this feed-in tariff are:
- €76.60 per MWh of electricity for small
gas engine (1.5 MW) regressing linear to €57.60 per MWh for larger
units (4.5MW and more)
- 15 years guaranteed
- Indexation to inflation
100% of the revenues will be derived from French feed-in tariffs
without exposure to power price market fluctuations for the next 15
years, allowing for maximum earnings visibility on this
activity.
The gas to power development plan
LFDE, via its fully-owned subsidiary Gazonor SAS, has signed a
LOI with 2G Energy AG, one of the largest manufacturers and
distributors of decentralized power units in Europe, to install a
total capacity of 9MW by June 2017 on four sites in Northern
France.
This will allow LFDE to implement its announced new development
of capturing coal mine methane present in the former mining
galleries and converting it into clean electricity to be used
locally.
Julien Moulin, chairman of LFFDE, said: "We are very pleased
with the launch of our gas to power activity. This allows LFDE to
develop its French power production capabilities and further
diversifies the Company's portfolio.
This activity adds attractive, growing and highly predictable
revenue streams to LFDE through the French feed-in tariff mechanism
at a time where LFDE accelerates its investments to become a
leading energy producer in Western Europe”
Ludger Holtkmap, COO of 2P commented: “2G Energy AG is very
proud to have been selected by LFDE in this tender. 2G Energy is
delighted to provide Jenbacher (General Electric) gas engines as
well as its recognised maintenance and technical support services
to LFDE for this initial phase of the development of its gas to
power capabilities for coal mine methane in Northern France”
Reuters code: LFDE.PA
Bloomberg code: LFDE.FP
About La Française de l’Énergie
Awarded the young innovative status by Bpifrance since June
2013, La Française de l’Énergie is a dynamic SME headquartered in
East of France and the first gas producer in France. Specialised in
the coal bed methane and coal mine methane production, La Française
de l’Énergie produces a local high quality energy from the
significant gas resources contained in the former mining basins of
North-Eastern France.
With the development of this local and strategic energy, La
Française de l’Énergie builds an economically and ecologically
competitive project with significant value added for the local
communities.
More information available on www.francaisedelenergie.fr
Disclaimer
This press release contains certain forward - looking statements
and estimates concerning LFDE’s financial condition, operating
results, strategy, projects and future performance and the markets
in which it operates. Such forward-looking statements and estimates
may be identified by words such as “anticipate,” “believe,” “can,”
“could,” “estimate,” “expect,” “intend,” “is designed to,” “may,”
“might,” “plan,” “potential,” “predict,” “objective,” “should,” or
the negative of these and similar expressions. They incorporate all
topics that are not historical facts. Forward looking statements,
forecasts and estimates are based on management’s current
assumptions and assessment of risks, uncertainties and other
factors, known and unknown, which were deemed to be reasonable at
the time they were made but which may turn out to be incorrect.
Events and outcomes are difficult to predict and depend on factors
beyond the company’s control. Consequently, the actual results,
financial condition, performances and/or achievements of LFDE or of
the industry may turn out to differ materially from the future
results, performances or achievements expressed or implied by these
statements, forecasts and estimates. Owing to these uncertainties,
no representation is made as to the correctness or fairness of
these forward-looking statements, forecasts and estimates.
Furthermore, forward-looking statements, forecasts and estimates
speak only as of the date on which they are made, and LFDE
undertakes no obligation to update or revise any of them, whether
as a result of new information, future events or otherwise, except
as required by law.
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