Low Carbon Accelerator, a closed-ended investment company listed on London’s AIM market, has increased its equity holding in wind turbine producer Proven Energy through a further invest
Low Carbon Accelerator, a closed-ended investment company listed on London’s AIM market, has increased its equity holding in wind turbine producer Proven Energy through a further investment of GDP800,000.
In addition to this new equity investment, LCA will convert its GDP700,000 loan into equity. This takes LCA’s total investment in Proven Energy to GDP6.65m, representing an aggregate equity stake of 38.9 per cent.
Proven Energy is a manufacturer of small-scale, high-performance wind turbines in the UK. Its clients include Sainsbury, B&Q, T-Mobile and Shell, for whom it provides marine-grade, explosion proof wind-turbines to power offshore gas platforms in the North Sea.
LCA previously announced that Proven Energy had appointed a preferred bidder for the acquisition of a majority stake in the company.
LCA says given the changes in the external economic environment since these negotiations began, it has not proved possible to close these negotiations on acceptable terms.
The new capital will allow Proven to invest in tooling and improve efficiencies in manufacturing, leading to increased output and turnaround time from its production facilities in Scotland.
Andrew McMullan, chief executive of Proven Energy, says: "This has been a very positive and successful year for Proven Energy. We have increased sales in all key territories, our turbines have received approval for state grants and funding in the US which will make them more attractive for end-users and halve payback times, while in the UK they are eligible for double ROCs under the Renewables Obligation, which should also boost sales in the home market.
"This extra injection of capital will allow us to ensure output meets demand and continue our successful trajectory into 2009 and beyond.’
Andrew Affleck, executive chairman at Low Carbon Investors, the investment manager for Low Carbon Accelerator, adds: "Proven Energy is well positioned as a successful UK engineering and manufacturing firm already exporting to a global market. Demand for wind turbines has remained strong despite the economic downturn and Proven Energy is now well poised to capitalise on this in the short term and over the coming years."
