Currently the UK’s leading coal mine methane producer, Alkane Energy was founded in 2006. It has had some troubles in as a company, but in recent years its business seen tremendous growth in a variety of sectors. In addition to designing, building and operating power power plants fuelled by methane gas, the company has established a significant market share in the methane extraction industry from a diverse set of sources. These sources include coal mine methane (CMM), biogas, conventional gas and landfills.
Coal Mine Methane
Abandoned coal mines are rich sources of methane gas. As experts with the complex tools and techniques used to extract methane from coal seams, Alkane Energy expects CMM to be one of its main sources of revenue growth in the medium to long term. Alkane Energy currently holds a 2% market share in coal mine methane extraction. This market is growing in size and scope.
In 2010, Alkane Energy announced that it had begun development on its first biogas plant. Biogas plants utilise organic agricultural waste products to provide methane gas, which can then be fed through power plants to provide clean, reliable energy. By using a method known as anaerobic digestion, Alkane Energy will provide cheap energy to inhabitants of the Whitwell area in North Derbyshire. Biogas currently provides about 1% of Alkane’s total produced energy, but this is expected to grow as demand for biogas plants becomes greater throughout the UK, particularly in rural areas.
Alkane Energy has invested heavily in these two areas over the past several years and is only now beginning to see results on its balance sheet. The company is poised to take off in the Alternative Investment Markets, making it a very attractive investment for investors who want to take advantage of the growing demand for green energy.