EuroBusinessMedia (EBM): Eco Delta Développement, EDD, a renewable energy company that produces electricity from windmills, is listing its shares as part of a private placement.
Ronald Knoche, welcome. You are the CEO of EDD. What would you say is the size and scope of your company within the context of the French market for windmills that produce electricity?
Ronald Knoche (RK): We are a pure player in wind energy, created in 2002, developing about 600 megawatts, concentrated in three main regions in France. In our history we have developed partnerships and co-operations with Shell Wind Energy, with Caisse des Depôts et Consignation but also for the technology co-developments with Oseo Anvar.
We have now in our portfolio 12 megawatt permits obtained and we have about 280 megawatt permits under instruction.
EBM: For investors who don't know you yet, what would you say is your background and track record as a manager?
RK: I started in 1982 with Lurgi and I was over 20 years within this company, ending as the CEO of the French branch. I was building over 70 plants worldwide in the field of metallurgy, oil and gas, environment and energy. Then I was European director for Middle East, Africa and Europe within Marsh for energy, environment, construction and real estate. And then I was working with this new company, nice company, EDD.
EBM: Why are you listing your shares today? How much capital do you plan to raise and what do you need the capital for?
RK: Our company has reached a certain degree of maturity and our projects too. We think that we will get about 77 megawatt electrical permits by the end of this year and we need equity, about 15 million euros, to get, to provide and to construct the first 100 megawatt wind farms within our company. This equity will allow us to get loans at a level of about 80/90 million euros by the banks to get the full finance for our projects.
EBM: What would you say is the outlook for the windmill/electricity market in the coming years?
RK: The outlook of the electricity market in France is very, very positive. The government has set a target of about 13,500 megawatts by the end of 2010 and we have nowadays about 2,000 megawatts in operation. This means in the next three years we need to install about 3,000 megawatts, which is maybe not really very, very realistic, but this gives us a very good chance and a very good opportunity to be in this market and to get our projects done.
EBM: Much of your business plan depends on building new wind farms in the coming years. What are your views on the potential risks linked to delays in obtaining the building permit?
RK: Risks and delays are of course existing. Nobody knows how the administration will provide and at which date they will give the permits. But in our business plan we were quite conservative by using delays which are, on one side, long-term delays related to our experience for our own works, but also delays related to the official sites from the French Ministry of Industry and at the end of the day we have a total chance, for the permits which we have introduced, of about 75% to get the permits - which is the official, well known, number.
EBM: And finally, in your view, what is the main reason why an investor should consider investing in your company today?
RK: Well, we are a company which is coming to maturity. We are just before getting quite a high number of permits - 77 megawatts by the end of this year, about more than the double, 200/260 by the end of next year - and we are introducing about 150 to 170 megawatt electrical wind farms every year for instruction. Therefore we think we have a huge potential and by coming aboard the investors will also have a huge result.
EBM: Ronald Knoche, CEO of EDD, thank you very much.
RK: Thank you, it was a pleasure.
