Business
UK COAL & Peel Energy sign Co
UK COAL & Peel Energy sign Co.
About this update from Harworth Group Plc
[{"type":"text","content":"\n RNS Number : 0626I UK Coal PLC 13 November 2008 \n \n\n\nEmbargoed until 7.00 am Thursday, 13 November, 2008\n\nWind Farm Development\nUK COAL and Peel Energy sign Collaboration Agreement\n\nUK COAL plc ('UK COAL') and Peel Energy ('Peel Energy'), part of the Peel Group, today announce that they have signed a Collaboration Agreement ('Agreement') which provides a framework to identify, assess and potentially develop wind farms on sites within UK COAL's land portfolio.\nPeel Energy has considerable experience of onshore wind farm development in the UK and the Agreement will give UK COAL access to the resources and expertise to realise over time the potential for wind farm development within its extensive land portfolio. \nThe Agreement relates only to wind farm development and has no impact on UK COAL's mining and property businesses. Given the nature of sites attractive for wind farm development, most of the land likely to be considered for wind farms has little value for alternative commercial use.\nInitially, the Agreement provides Peel Energy with a two year period of exclusivity to work together with UK COAL to identify and evaluate sites suitable for wind farm development. For each prospective site covered by the Agreement, Peel Energy will, at its expense and subject at each stage to UK COAL's agreement, undertake a phased programme of initial evaluation, further assessment and pursuit of planning permission. \nIf a site is submitted for planning permission, a special purpose company will be formed by Peel Energy, and UK COAL will be granted an option to acquire a 50% equity share . At the same time, UK COAL will grant the special purpose company an option for a 30 year lease over the relevant land at an open market rent. Conditional upon planning permission being granted and subject to each party exercising their respective options, the subsequent development, operation and funding (i...