EANS-News: African International Energy PLC: AIE Increases Traction in Africa with Two Hydropower Concessions in Ghana

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Licensing Agreements/Strategic management decisions/Energy

Surrey (euro adhoc) - 07 December 2011. After extensive negotiations
with Ghana´s Ministry of Energy, AIE (African International Energy
PLC) has been granted two hydropower field concessions on the Ankobra
River, in the Western Region of Ghana, to help relieve an
ever-mounting energy crisis in, what is now, the fastest growing
economy in the world - with growth of 14% in 2011 alone. AIE is an
international energy player listed on the Frankfurt Stock Exchange
and is set to become the largest independent energy producer in
Africa. The company has already tied up large gas fields along the
Western Coast of South Africa to produce electricity from gas. The
company has also made major inroads into Nigeria and more recently,
Ghana - thereby increasing its traction to provide clean and
renewable energy to Africa, a continent that is steering towards a
massive electricity crisis. The two hydropower plants proposed by AIE
in Ghana will produce 50MW and 90MW respectively - a total output of
140MW. These plants will be developed at a cost of approximately $160
million.

AIE is proposing to use Run-of-the-River (ROR) technology for its
Ankobra River project, which is more environmentally friendly than
traditional hydro-electric plants as it does not require a large
impoundment of water - which invariably involves the flooding of
large tracts of land, and possible displacement of the population.

It is the Ghanaian government´s policy to include renewable energy in
the electricity generation mix, and AIE´s proposed Run-of-the-River
hydro-electric plant technology is therefore consistent with this
stance. The country´s Renewable Energy Bill, which has a
feed-in-tariff component to ensure return on investment for
independent power providers, is currently in the advanced stages of
being passed into Ghanaian law. AIE expects a minimum of 15% return
on the project from supply agreements in place to connect to the
existing electricity grid.

As a company, AIE is focused on the under-serviced energy industry
market in Africa - a rapidly developing continent whose energy
demands are increasing exponentially. Project development is targeted
within African economies that have a good supply of clean and
renewable energy resources, as well as familiar and favourable
independent power producer legislation. Ghana - as the world´s
fastest growing economy, and one of the continent´s more robust
democracies - is a perfect fit for AIE, according to CEO, Aldworth
Mbalati.

Africa's rapid economic growth (much of it backed by massive
investment from China) is under threat from a deepening energy crisis
as governments struggle to expand an ageing energy infrastructure and
build a power generation foundation for future business and
industrial manufacturing. With mounting pressure on countries to
reduce carbon emissions in line with global targets, there is a rush
to find sustainable, clean and renewable energy. AIE is actively
positioning itself to be the central player in this field by working
with local governments as an independent power producer focused on
clean energy generation and solutions. Current AIE projects include
natural gas development, hydropower generation and underground coal
gasification, with renewable resources such as wind and solar powered
projects also on the radar.

Further inquiry note:
For more information visit http://www.aie-plc.com or contact Aldworth Mbalati:
+27 82 645 3376

end of announcement euro adhoc
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company: African International Energy PLC
Portsmouth Road
UK-KT109 AD Surrey
phone: +44 1372 465 330
mail: oldworth@aie-plc.com
WWW: http://www.aie-pic.com
sector: Energy
ISIN: GB00B5VS7Q20
indexes:
stockmarkets: Open Market: Frankfurt
language: English