Low carbon accelerator takes controlling stake in leading turbine manufacturer
Low Carbon Accelerator Limited ("the Company" or "LCA") announces that it has increased its equity holding in Proven Energy Limited ("Proven Energy") through a further investment of £1.5 million.
In addition, LCA's existing loans to Proven Energy, totalling £600,000, will be converted into equity. In total this will give LCA a controlling stakeof 81% of Proven Energy's issued share capital. The Company's total equity investment in Proven Energy now amounts to £9,250,000.
Proven Energy is the market leading manufacturer of small-scale, high performance wind turbines in Europe and recognised as number two globally in terms of production in 2008.
The new funds will be used to support further product enhancements as Proven Energy prepares for the introduction of feed-in tariffs in 2010 and the rapid growth in sales that this is expected to bring.This further investment is in line with the Company's strategy, put in place following the successful capital raise in June of this year, enabling LCA to capture more value in its top performing investments whilst concurrently providing portfolio companies with the additional financial resources to accelerate their growth.
Proven Energy's objective is to be at the forefront of the transition by this sector of the industry into the important next phase of growth,where new standards are set in terms of product quality, responsible deployment and scaled solutions. As a firm statement of intent in this regard and a significant milestone in Proven Energy's development, it has obtained Microgeneration Certification Scheme ("MCS") accreditationfor its 15kW turbine, making it the first company to attain this product recognition.
Chris Simpson, Chairman of Proven Energy said: "This is a significant milestone and a real vote of confidence for the team at Proven Energy. The company has huge potential and these funds will enable us to increase the pace, and breadth, of our development."
Andrew Affleck,Chairman of Low Carbon Investors andthe Investor Director on the Board of Proven Energy said:"Proven Energy is a true market leader in this sector and is set for further rapid growth when feed-in tariffs are launched next April. These funds will ensure the company can take full advantage of its position and remain the leading quality supplier of small wind turbines."
About MCS: http://www.microgenerationcertification.org/
The Microgeneration Certification Scheme is an independent scheme that certifies microgeneration products and installers in accordance with consistent standards. It is designed to evaluate microgeneration products and installers against robust criteria providing greater protection for consumers.
The MCS is the only certification scheme to cover all microgeneration products and services, and has support from the Department of Energy and Climate Change, industry and non-governmental groups as a prime method for making a substantial contribution to cutting the UK's dependency on fossil fuels and carbon dioxide emissions.
About Low Carbon Accelerator:www.lowcarbon.gg
Low Carbon Accelerator Limited is a closed ended investment company created to invest in a portfolio of fast-growing low carbon businesses. The Company listed on the AIM Market of the London Stock Exchange on11 October 2006, raising £44.5 million.A further £10 million was raised in June 2009.
The Company's investment objective is to provide shareholders with an attractive return on their investment through holdings in a diverse portfolio of unquoted private companies providing low carbon products and services.
The Company invests principally in companies which provide low carbon products and services across the following sectors:
- Buildings (sustainable building materials, heating, lighting, clean air and water technologies for industrial, commercial and/or residential use)
- Fuels (bio-fuels, low carbon fuels, catalysts and additives)
- Energy efficiency (reductions in energy inputs at source, improved conversion and reductions at point of use)
- Energy generation (sustainable and clean energy, micro and distributed generation)
The Company's investment strategy is to target trading businesses with patentable technologies and products with a clear commercial application and the opportunity to gain a large market share of a new or expanding market. The Company focuses on businesses with experienced management teams who have developed commercially viable products providing easily adoptable solutions which deliver immediate reductions in carbon dioxide emissions.
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