6 Aug 2007
Energy Developments Limited (ENE) announced today the completion of the sale of the Cedar Hills landfill gas rights in King County, Seattle, Washington, USA to Industrial Power Generating Company, LLC (Ingenco) for US$6 million (A$7.1 million).
The Company had previously intended to use the Cedar Hills gas rights for a landfill gas to electricity project, but it was decided, in consultation with landfill owner, King County Council, that a generation project was not commercially viable and that a high-Btu (British thermal unit) gas project was more appropriate for the Cedar Hills site.
ENE, working closely with King County Council, selected Ingenco as the preferred developer of a high-Btu gas facility.
The US$6 million price is payable in instalments, with ENE receiving US$5 million (A$5.9 million) on completion of the sale. Payment of the remaining US$1 million (A$1.2 million) will be deferred until commercial operation of the high-Btu gas facility, currently forecast for late 2008. ENE will defer profit recognition of the deferred US$1 million instalment until that time.
The net proceeds of sale are estimated at US$4.2 million (A$4.9 million), and will be recognised in ENE's half year results for the six months to 31 December 2007.
© Copyright Infratil