Burst of energy gives boost to Alkane

ALTERNATIVE energy company Alkane Energy yesterday revealed that its revenues and earnings rose in the first six months of 2010.

In the half year ended June 30, revenue increased by 7.5 per cent to 3.1m while EBITDA (earnings before interest taxation, depreciation and amortisation) rose 5 per cent to 1.5m.

The company is drilling for coal mine methane, which it then converts into power, at a number of sites in Yorkshire, including Snydale and Newmarket in West Yorkshire.

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Alkane has the UK's biggest portfolio of coal mine methane licences, which enables the company to extract gas from abandoned coal mines.

The group generates power from 10 small scale power plants across the UK, and sells this power through the electricity network.

Neil O'Brien, the chief executive, said: "We have continued to see strong organic growth in our core coal mine methane business and will add further generation capacity in the second half.

"In addition, we are seeing the benefits from our activities in related conventional gas and are making our first initiatives in the biogas sector.

"Alkane is well placed in an environment where the pricing outlook appears to be strengthening and there are considerable consolidation opportunities."