French govt snaps up UK wave power technology

French state-controlled electricity company EDF - the world's biggest operator of nuclear power plants - has recognised the value of a UK wave power company. See contract announcement below.

What a pity that no British company had the foresight to buy the licence for this technology.

EDF Energies Nouvelles collaboration and investment

Renewable Energy Holdings plc (AIM: REH), the investor and operator of proven
and innovative renewable energy technologies, is pleased to announce that the
Company has entered into a collaboration agreement ("Collaboration Agreement")
with EDF Energies Nouvelles SA ("EDF EN") relating to REH's CETO wave power
technology. This follows the announcement of 27 July 2007 that the companies
had entered into a Memorandum of Understanding.

The terms of the Collaboration Agreement will permit EDF EN exclusively to
develop offshore wave power projects in the Northern Hemisphere and at Reunion
Island in the Indian Ocean (together, the "Territory of Exclusivity"), using
REH's proprietary CETO wave power technology. Further information on the terms
of the Collaboration Agreement is set out in the Appendix to this announcement.

In addition, also as announced on 27 July 2007, under the terms of the
Collaboration Agreement EDF EN has today invested a total of #3.0 million in
REH.


Mike Proffitt, Chief Executive Officer of REH, commented:

"We are very pleased indeed to have concluded our CETO Collaboration Agreement
with EDF EN and we look forward to working with them to develop CETO wave power
projects across the Northern Hemisphere.

"EDF EN's interest in the CETO wave power technology demonstrates that the CETO
wave energy device has an exciting commercial future ahead and the potential to
be a global success."


Paris Mouratoglou, Chairman of EDF Energies Nouvelles, said:

"EDF Energies Nouvelles is committed to develop new renewable energy
technologies. The wave energy potential is very significant and has been
identified as one of our future sources for growth. We are delighted to announce
the signing of our final agreement with REH and look forward to a successful
development of the promising CETO technology."


EDF EN's #3.0 million investment in REH is structured as follows:


1. EDF EN has subscribed #1.5 million for 3.0 million new ordinary shares
of 1 pence each in REH ("New Ordinary Shares") at a price of 50 pence per new
ordinary share (the "Equity Payment"). The Equity Payment which has been paid
into an escrow account administered by REH's solicitors, Herbert Smith LLP, is
held to the account of REH and will be released to REH upon the following
milestones in the commercial development of CETO being achieved:


Overall Equity Milestone definition Equity Payment New Ordinary
milestone released from Shares
escrow attributable to
milestone
1 Three CETO II units having been installed #500,000 1,000,000
and connected through the joint off-shore
pipeline into the on-shore collection
system.
2 30 days of performance data collection of #500,000 1,000,000
the total system (three CETO II units)
having been completed.
3 CETO III prototype unit has been #500,000 1,000,000
manufactured and is ready to ship ex works.