Alkane Energy plc

(“Alkane” or the “Group”)

                                                                        4 July 2014

Alkane Energy plc Wins Another Award

Alkane Energy plc has won the Business Excellence Award ‘2014 Growth Award: Independent Power Generator of the Year - UK’. These prestigious awards from Acquisition International are a reward for success, innovation and ethics across the business community.

Alkane has had a successful last 12 months with the acquisition of 11MW of coal mine methane assets at Maltby Colliery from Hargreaves Services plc, the acquisition of 7.5MW of power response assets at Wheldale from SSE plc, together with the opening of two new sites from our project pipeline. During the 12 months ended 31 December 2013 output increased by 15% year on year and Alkane now has 90MW of installed capacity.

Commenting on this Award, Neil O’Brien, Chief Executive Officer of Alkane Energy said:

“We are delighted to win the award as the Independent Power Generator of the Year. Alkane continues on a growth strategy to exploit the opportunity in the UK Electricity Market”.

For more information please contact:

Neil   O’Brien, Chief Executive Officer

Steve   Goalby, Finance Director

01623   827927

Background information

Alkane is one of the UK's fastest growing independent power generators. The Company operates mid-sized “gas to power” electricity plants providing both base load and fast response capacity to the grid. Following the acquisition of the Wheldale power response assets, Alkane now has a total of 90MW of installed generating capacity and an electricity grid capacity of 110MW.

Alkane's base load operations, where power is generated 24/7, are centred on a portfolio of coal mine methane (“CMM”) sites. Alkane has the UK's leading portfolio of CMM licences, enabling the Company to extract gas from abandoned coal mines.

As CMM declines at any one site, Alkane retains valuable generating capacity and a grid connection which can be redeployed to power response. Power response sites are connected to mains gas and produce electricity at times of high electrical demand through peak running, or in order to balance the electricity grid through participation in the National Grid’s short term operating reserve programme (“STOR”). Participants in STOR are paid premium rates when called upon by the Grid to meet temporary supply shortages. Alkane now operates 43MW of power response on mains gas.

The Group operates from 24 mid-size (up to 10MW) power plants across the UK, 15 CMM only, 6 mains gas only, and 3 using both fuel sources. Alkane uses standard modular reciprocating engines to generate the electricity and sells this power through the electricity network. The engine units and other plant are designed to be flexible and transportable allowing additional capacity to be brought onto growing sites and underutilised plant to be moved to new sites to maximise efficiency.

Alkane has a range of core skills encompassing the entire project development cycle including planning and permitting, sourcing plant and managing the build and commissioning stage. This has enabled Alkane to establish a design, build and operate (“DBO”) business for third party clients in the biogas and oil & gas industries.

The Group has circa 800km2 of acreage under various onshore Petroleum Exploration and Development Licences (“PEDLs”).

More information is available on our website www.alkane.co.uk

           

Business Sectors

Generation - Design Build & Operate - Licence Potential

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