Company Information for Alkane Energy Plc

AIM-ALK

www.alkane.co.uk

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AIM; ALK

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Company Statement

Alkane Energy is an international renewable energy company that designs, builds, operates and services methane treatment and generation plants. These plants greatly reduce emissions of damaging greenhouse gases and play a vital role in world-wide efforts to reduce global warming.

Alkane's technology plays a vital role in the effort to reduce global warming by using emissions of the potent greenhouse gas as fuel for electricity generation and industrial heating. Each tonne of methane captured by the Company's system is equivalent to a reduction of 18.25 tonnes of carbon dioxide emissions to the atmosphere.

Operations and Technology

London-listed Alkane Energy is an international renewable energy company. It was founded in 1994 to extract methane gas from abandoned coalmines in the UK but its business model has evolved over time and it now designs, builds, operates and services methane treatment and generation plants.

These plants greatly reduce emissions of damaging greenhouse gases and play a vital role in world-wide efforts to reduce global warming. In 2006, Alkane’s generation plants removed atmospheric emissions equivalent to about 450,000 tonnes of carbon dioxide. This corresponds to saving the emissions from approximately 1,000 return flights from London to New York and around 1.5 billion vehicle miles.

Alkane’s first plants in the UK came online in 2005 and today it has six mine gas capture plants in operation with an installed capacity of 17 MW, saving the equivalent of around 560,000 tonnes of carbon dioxide per year. The UK plants are sited in Nottinghamshire, Derbyshire and West Yorkshire. In Germany, it holds 38 per cent of Pro2, which has one mine gas capture plant and has plenty of additional potential to profit from that country’s booming biogas market.

Over the first six months of 2007, the company’s UK business reported a post-tax profit of £310,000 while turnover was up almost 30 per cent at £2.3 million. Its German associate Pro2 reported turnover of almost £8 million for the six month period, with its order book at record highs.

While wholesale electricity prices have softened in 2007 (from £45/MWh in 2006 to around £35/MWh in 2007), the company’s revenues are enhanced by some £3.50/MWh because its UK mine gas projects are exempt from the Climate Change Levy. The company also expects increased production to offset the lower average price. In early 2008 the company reported it was encouraged by strength in the wholesale electricity market and said it had contracted income extending well into 2009.

In March 2008 the company announced that offer talks initiated in October 2007 had been terminated after failing to reach agreement on a bid that adequately reflected the value of the company.

Board of Directors and Key Management

Neil O'Brien	Chief Executive Officer
Dr Cameron Davies	Business Development Director
David Oldham	Technical Director
Stephen Goalby	Finance Director
John Lander	Chairman
Julia Henderson	Non-Executive Director

Company Address

Edwinstowe House
Edwinstowe, Northamptonshire, United Kingdom NG21 9PR


Telephone:	+44 (0) 1623 827927
Facsimile:	+44 (0) 1623 827930
Website:	http://www.alkane.co.uk

Capital

Number of Ordinary shares in issue; 92,883,878 Number of shares not held in public hands; 30,340,778 (32.93%)

Nominated Advisors

NOMAD
Brewin Dolphin Securities Ltd
34 Lisbon Street
Leeds
LS1 4LX

Major Shareholders

Gartmore Investment Limited	14,985,026	16.13%
USB AG London Branch	8,599,971	9.25%
W C Davies	3,895,832	4.2%

Most Recent Statement

06/05/09 - AGM Statement
18/03/09 - Board Change
18/03/09 - Unaudited preliminary results for the year ended 31 December 2008
05/03/09 - Completion of sale of interest in Pro 2
02/03/09 - Agreed sale of interest in Pro 2
07/11/08 - Alkane appoints Neil O'Brien as CEO

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