LONDON - Isle of Man-based Renewable Energy Holdings is cranking up its first wind turbines and expects to launch a string of other green power projects in the near term, the company's chief executive said on Thursday.
REH will launch a 42-megawatt wind farm near Cologne in Germany in the fourth quarter, joining a new breed of green energy firms in a sector booming on the back of near record oil prices and state subsidies aimed at curbing greenhouse gas emissions.
"We have a rapidly growing pipeline of quality, new deals," said Michael Proffitt in an interview. "We are looking at several large deals in Europe."
Proffitt said wind power would dominate the firm's power generation portfolio in the near term but run-of-river and wave power projects were expected to play an important role in the future.
RES has acquired a new wave power technology which it expects to bring to the market in 12 to 15 months.
The company, which listed on London's junior AIM stock market in February, is tapping a surge of interest in green power.
GOVERNMENT SUPPORT
National governments in Britain, German, Italy and elsewhere in Europe are subsidising renewables projects such as windfarms, solar and wave project as part of the push to curb greenhouse gas emissions in line with the Kyoto Protocol on climate change.
At the same time, near record oil and gas prices are driving demand for alternative energy sources.
"People are very interested in the renewable energy sector," said Stephen Rammer, analyst at Handelsbanken Capital Markets. "If we go much above the current (oil price) levels then interest will increase even more dramatically."
REH shares on AIM jumped 25 percent to 75 pence in April but they have since pulled back to stand seven percent above the debut price.
Elsewhere in the renewables sector, shares in German solar energy firm Solarworld and Conergy have gained about 25 percent in the last six months. Shares in Danish wind turbine firm Vestas have quadrupled since January, with Spain's Gamesa more than doubling.
Analysts say green power operators in Germany could face a setback should the conservatives win a general election on Sept. 18 in Germany and subsequently slash subsidies to green power.
REH is confident a future German government would not tamper with subsidies already in place for existing green power projects, said Proffitt.
"We don't think that there is a serious risk to the existing tariff structure," he said. "We don't think it is in the nature of German governments to do this."
Story by Stuart Penson
REUTERS NEWS SERVICE
