7 Jun 2005
ENE announces that it has today executed three agreements with Anglo Coal comprising Power Project Agreement, Gas Supply Agreement and Site Lease Agreements in respect of the 32MW German Creek Coal Mine Methane Power project ('the Project').
Execution of these agreements will enable the Project move into its implementation phase, in particular the placement of an order for sixteen 2MW generator sets. These are scheduled for despatch from the USA factory before 31 December 2005.
The broad parameters of the Project were outlined in ENE's ASX release dated 11 February 2005.
The Project is expected to cost approximately $35 million and will be funded by a GGAP grant of up to $15.4 million, provided by the Australian Government's Department of Environment and Heritage (subject to completion of conditions precedent), debt funding from ENE's existing facilities and existing cash reserves.
Mr Chris Laurie, ENE's Managing Director said that the Project built on ENE's proven expertise in power generation from coal mine methane gas and would deliver significant environmental benefits through the capture and utilisation of gas comprising in excess of 1 million tonnes of carbon dioxide equivalent per annum in the initial years of the Project.
The Project is expected to commence commercial operation in late calendar Q1 2006.
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