12th September 2011 -- Advanced Plasma Power (APP), the leading UK based waste-to-energy technology company, has secured significant funding for the next stage of its ambitious development.
Leveraged Green Energy (LGE), an existing institutional shareholder in APP, has further demonstrated its support for the company with a number of important moves. LGE has invested an additional £7.6 million at 50p per share by exercising in full the remainder of its option under the original May 2009 transaction. Furthermore, LGE and APP have agreed terms for an additional investment of up to £7.5 million into the compa¬ny at £2 per share, which would value APP at around £300 million, to be called if needed for project development.
In addition, the term sheet provides for LGE’s participation in the financing of individu¬al projects through a project fund into which it would pledge £20 million as a cornerstone investment. Given the highly attractive investment returns on projects, APP is also securing interest from a number of other potential participants in the fund.
LGE recognises the strong commercial opportunities that APP’s Gasplasma® presents both now and into the future. The process, which combines existing proven technologies, converts residual waste into a clean hydrogen-rich syngas and an inert vitrified product called Plasmarok®. The syngas can then be used to power gas engines or turbines for the clean and efficient generation of renewable electricity and heat. Alternatively, the syngas can be converted for use in fuel cells or as synthetic natural gas or as a liquid fuel. The Plasmarok® has a variety of valuable end uses as a building material or replacement aggregate.
The securing of funding follows strong recent progress on the APP project pipeline. A formal joint venture agreement has been signed with Group Machiels, a Belgium headquartered global waste management and environmental services company, for APP to supply a series of up to five plants in a pioneering project to mine and process over 16 million tonnes of landfilled waste restoring the landfill site to parkland.
In addition, developments are positive with APP’s Norwegian partner at the Norske Skog paper mill in Skogn, Norway with additional grant funding being secured from the Norwegian government.
Finally, APP continues to develop its pipeline of UK business with significant and rapid progress with a number of major UK waste operators.
Rolf Stein, CEO of Advanced Plasma Power commented, “Securing additional investment from Leveraged Green Energy and the anticipated project fund are significant developments for APP. They represent a strong validation of the company’s technology, strategy and management as we prepare for an exceptional period of major growth.”