Helius powers up

Jan 12 2007 By Graeme King, The Journal

Renewable power company Helius Energy launches its bid to list on the stock market today and is expected to raise as much as £20m.

The North-East company plans to develop three £100m biomass power plants in the UK - at a site not yet announced on Teesside, at Stallingborough near Grimsby in Lincolnshire, and at another unconfirmed location on the north west coast of England.

The company currently operates with just 10 staff, but says it will require 240 to operate its three proposed 65 megawatt plants.

Helius also has an office in Johannesburg in South Africa, and intends developing smaller biomass energy plants there too.

The £15m to £20m expected to be raised from the flotation will go on developing the company to the point when it is ready to build its plants. The company expects to be trading on the AIM (Alternative Investment Market) by the end of this month.

Managing director John Seed said yesterday: "It's been a long haul, getting ourselves on to the AIM market - a difficult journey, but there has been a lot of interest. There will be a pre-admission announcement tomorrow and we will be "in the air" by the end of January. One reason to get listed is to provide a profile and a platform to expand the business."

Mr Seed said biomass was an important technology as it is economic, environmentally friendly, and does not suffer from problems with security of supply, as oil and gas do.

He said: "Biomass reduces energy costs, and ensures security of energy supply too.

"We are very focused on biomass, and need to be able to burn a range of things. The reason we are based at Middlesbrough, is partly because of feedstocks being imported there. We see UK agriculture and the forestry industry as long term providers of fuel."

Mr Seed said Helius will sell most of its power directly to the National Grid, but will also have the ability to generate power directly for an industrial user.

He said: "When we look for sites for the company to develop, we look for the ability to put power into the grid. But we do also have the ability to supply a company located beside a plant directly. We are working with blue chip technology companies, banks, etc to design and build plants."

Helius Energy has its head office at Grangetown in Middlesbrough, and an administration centre in Grimsby.

Mr Seed said: "We've spent more than two years looking at more than 100 sites - road and port infrastructure are important for us.

"And in Lincolnshire and the North-East, there is a growing infrastructure in processing cereals, which is useful too."

Helius believes it can improve the economic performance of developing nations in a sustainable way through providing renewable energy.