A Worcestershire power plant business has been acquired as part of a £12.1 million deal.

Alkane Energy has acquired Leven Power Ltd in Redditch along with two other power response sites owned by Cardiff-based Carron Energy.

AIM-listed Alkane is a Nottinghamshire-based independent gas to power company.

In April 2008, Carron Energy acquired First Energy (Redditch) Power whose named was then changed to Leven Power.

The plant is 25MW open cycle gas turbine, capable of achieving full load within 10 minutes of National Grid instruction. Its power is subsequently sold to Smartest Energy.

The site is utilised for fast start peaking power and has a long-term contract with the National Grid running to 2025.

Alkane said the deal strengthened its position in the short-term operating reserve (STOR) market which is estimated to be worth around £100m per year in the UK.

STOR market participants are paid premium rates during the year when called upon by the National Grid to meet temporary supply shortages.

The other sites included in the deal are Darent Power in Kent and Rhymney Power in Cardiff.

Alongside the acquisitions, Alkane Energy has placed 22.2 million shares to raise £8 million and has secured a further £5.5 million of debt finance from Lloyds Bank.

The additional funding will be used to provide working capital to support the continued investment by the company in its core gas to power activities.

International investment bank Altium advised Alkane Energy, in a team led by Adrian Reed, managing director and head of energy, waste and renewables.

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