Business World

Wednesday 14 November 2018

Flotation of Kedco fuels new ventures

Joe Brennan

Fledgling renewable energy company Kedco, backed by a farmers' investment vehicle, hopes to defy turbulence in the global stock markets as it debuts on London's alternative investment market (AIM) this morning with an initial market capitalisation of €34.9m.

The Cork-based company, which has raised €16m in funding since it was founded in early 2005 by chief executive Donal Buckley and three other directors, specialises in the generation of electricity from sustainable fuel sources.

Farmer Business Developments, a farmers' investment firm whose main interest is a 25.7pc stake in insurer FBD Holdings, acquired a 25pc stake in Kedco during the summer.

Kedco is not raising money as part of the flotation but is looking to tap the market for cash after Christmas to develop its strategy. It is believed it may seek to raise in excess of €10m then. The stock admission price has been set at 17.5c per share.

The main focus of the business to date has been providing biomass heat and solar devices such as wood pellet boilers and stoves and solar collectors.

The group is also looking to set up joint ventures with medium-sized waste operators, local authorities, food companies and agricultural operators to set up plants that convert waste into energy.

Partnerships

The company, which has identified more than 25 specific opportunities in the UK and Ireland to establish partnerships, plans to benefit from the revenue streams generated by the sale of electricity these plants will produce.

Kedco and its partners are currently seeking planning for three projects, amounting to a total of 6 megawatts of electrical power. One megawatt is enough to power 5,000 homes for an hour.

"We're in a sector that's been least affected by the effects of the credit crunch on the stock markets," said Mr Buckley. "Our project pipeline is very much based in the UK and we believe it's very important to be a regulated stock market-quoted company."

The company has no current plans to seek a second listing on Dublin's junior IEX market.

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