Novera waits on wind power

By Fiona Harvey, Environment Correspondent
Published: February 23 2009 18:31

The perils of relying on a dying form of renewable electricity were evident in full-year results from Novera Energy.
Losses at Novera, the target of abandoned takeover bids by 3i and Terra Firma last summer, deepened from £2m to £3.5m on higher administrative costs in the year to December 31. Turnover rose from £32m to £35.5m. Debt was £70m, with £20.4m cash in the bank that will be spent on wind farms.
However, Novera generated 2 per cent less electricity than last year, mainly because it relies on landfill gas, of which supplies are running out.
Novera shares dropped 1¾p to 35p on Monday.
Novera is the country’s second-largest producer of energy from landfill gas, after Infinis, owned by Terra Firma. Although landfill gas has been the biggest source of renewable energy in the UK in recent years, it is being overtaken by wind power, because the gas is a finite resource.
Novera said it was making “good progress” on its wind farms, with a 30MW farm in Yorkshire operational, and two farms with a potential of 62MW to 73MW with planning approval.
Andrew Shepherd-Barron, research director at KBC Peel Hunt, said: “Investors are not buying Novera for the landfill gas now but . . . because it’s a nice way to play the wind market.”
He said the value of Novera’s wind farms was not reflected in the share price.
Copyright The Financial Times Limited 2009