Novera seeks funds for expansion
Potential takeover target Novera Energy said it considering options to refinance the business and is confident the company will be able to draw on significant additional borrowing capability to fund future expansion.
In a trading update the company said energy generation was up 1% and revenue 4% higher in the first four months of 2008 from levels in the corresponding period of 2007.
The company has made significant progress on two strategic projects: bringing engine maintenance in-house and establishing a 24-hour control room.
Construction of the 30 megawatts (mw) wind farm at Lissett Airfield is well underway and the project is on target to start production in December 2008.
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The planning application for the 20-turbine A'Chruach Wind Farm in Scotland received the approval of the Argyll and Bute Council last week. The rubber-stamping of the wind farm, which will be built on land leased from the Forestry Commission Scotland, brings Novera's consented wind portfolio to at least 85mw, and possibly as high as 91mw, depending on the turbine selection at A'Chruach.
Novera has around 20 more sites in the pre-planning stage with an operational capacity of about 300mw. Novera expects to lodge planning applications for sites with capacity of about 100mw this year, with the remainder submitted next year.
The company is currently considering options for refinancing the business and is confident that significant additional borrowing capability will be made available to finance future development projects.
Last week the Takeover Panel set a 2 June deadline for bidding rivals Infinis and 3i Infrastructure to reveal whether they intend to bid for Novera Energy.
