Clean energy delivers strong results

COAL seam methane and landfill gas energy generation company Energy Developments will extend its relationship with Anglo Coal by building a new $60 million project at the Moranbah North mine.

Staff Reporter

The announcement comes as Energy Developments released its 2007 financial year report of $A27.1 million net profit that became a loss of $16.6 million after the one-off funding costs of $42 million to establish a regional power project in northern Western Australia and the sale of its Taiwan landfill gas business.

The West Kimberley Power Project is set to come online in October this year while its newest project, the 45MW coal methane gas plant at the Moranbah North mine, is in its early stages.

It is being constructed by Clarke Energy and will follow the proven successful framework of the 32MW coal seam methane project at German Creek commissioned in late 2006.

The deal includes a long-term gas supply contract with Anglo Coal. The project is expected to be commissioned in the final quarter of 2008.

Energy Developments managing director Chris Laurie said earnings for this year are forecast to increase to $110- 120 million (up from $96.2 million) dependent on the operations of the WKPP and Australia's green credit price.

Laurie said that while Australia is moving in the right direction towards an emissions trading scheme, the pace of the initiative is concerning and there is a lack of guidelines on issues including interim emission caps.

"This is creating significant investment uncertainty for the energy industry as a whole and especially for the clean energy and the renewable energy industry," Laurie said.

"Another critical aspect to be considered by policy makers is the appropriate grandfathering and transitioning of existing carbon abatement schemes such as the New South Wales Government's GGAS scheme into a new national emissions scheme so that existing 'early-start' participants are not disadvantaged."

In the 2007 financial year the company captured and utilised 8.5 million tonnes of carbon dioxide worldwide, the equivalent of taking 2 million cars off the road.