Private energy firm to list on London's AIM

The privately owned energy company Finavera Renewables is to list on the Alternative Investment Market (AIM) in London, it has emerged.

The company is active in wind power, wave power and fuel-related technologies. It is developing 180 megawatts of wind power in Ireland.

It also has stakes in two wave power companies which, combined, are hoping to produce 170 megawatts of power.

Finavera has appointed Libertas Capital as its sponsoring broker and nominated adviser for the AIM flotation.

The company is finalising land agreements for the development of two wind projects in Galway and Clare.When developed, the wind farms will produce enough green energy to power more than 100,000 homes and will contribute to helping the Republic meet its renewable energy targets.

Both wind projects are located within reach of ESB transmission lines.

"Ongoing improvements to the grid infrastructure in the vicinity are expected to present a number of additional options for connection," said a spokesman yesterday.

The company's wave projects are located off the coasts of Wales and Portugal. Wave technology is a high-risk venture, with previous attempts to harness the power of the sea failing, often because equipment got damaged during bad weather.

The company believes its products, which move with ocean currents, will be able to withstand stormy conditions.

Asked who the shareholders were in the company, a spokesman said the majority stake was held by management and directors, but Irish and UK institutions and high-net-worth individuals were also involved.

The company has appointed Michael Reynolds, former European chief executive for Spain's leading power utility Endesa, as non-executive chairman.

Adrian Neville, who previously worked with Goodbody Corporate Finance, has been named as director for structured finance.

The Government is committed to meeting a target of sourcing more than 13 per cent of national energy needs from the renewable sector within the next five years.

Traditionally, the price of renewable energy has been much higher than conventional forms, but the Government now offers to pay green energy companies a public service obligation (PSO) levy, which is aimed at bridging the price gap.

Minister for Natural Resources Noel Dempsey has signalled that he wants to continue this level of support, despite some reservations voiced by the energy regulator Tom Reeves about the PSO regime.

* Meanwhile yesterday another wind energy company, Airtricity, released its annual report and results for 2004. They showed revenue up from €92 million to €126 million, with pretax profits up from €1.2 million to €2.5 million.

The company is planning to open the first phase of its Arklow offshore wind farm later this week.

The company has warned that it may not develop the remainder of the site unless Government assistance to the wind energy market is improved.