We are currently evaluating 11 separate projects that we aim to release and promote before the end of this year. These projects are all currently undergoing the final stages of a thorough due diligence process. The future projects that are currently under consideration can be broadly divided into two categories: renewable energy and sustainable housing.

Renewable Energy:

• Solar farms (Morocco and Spain)
  Keats has identified a number of sites in both Spain and Morocco, although we expect the first project to be Spanish. The sites range from 70,000m2 to 350,000m2 and are currently undergoing suitability analysis.
  
  Spain
  As a renewable energy source solar energy is one of the most globally accessible and can be harvested in a number of different ways from the use of photovoltaic solar cells, to updraft towers which turn turbines, to solar chimneys and even solar ovens.  Spain is of course famed for it high rates of annual sunshine hence its popularity with northern Europeans as a holiday and second home location.  The region of Catalonia has around 2500 hours of sunshine a year on average, a total solar radiation of 1,502 Wh/sqm which in 2004 was 28 times the electricity consumption of its capital, Barcelona.
  
  Spain's new Renewable Energy Plan approved in August 2006 aims to make 12.1% of primary energy consumption from renewable sources by 2010 as part of its agreement with the Kyoto Protocol, as well as lessening the current high dependence upon imported energy sources - 64% of coal, 99.5% of oil and 99.1% of gas used.  This plan seeks to find at least 97% of investment from the private sector, using just 2.9% of investment from public funds, therefore opening up the market to outside investment.
  
  Morrocco
  For a country low on natural resources and heavy industry, solar can offer a viable alternative to other traditional but more expensive options for producing power to meet the demands of an expanding, mainly tourism driven economy.  Annual electricity consumption in Morocco tripled between 1983 and 2003, going from 4,803 GWh to 14,794 GWh, and this trend looks set to continue.
    
  In 2004, Morocco signed an agreement with the United Nations Environment Program and the United Nations Development Program which aim to finance the market for renewable energy in Morocco. With a new law on renewable energy use due to come into effect in July 2007, energy consumption from renewable sources should rise from 2% to 10% by 2010. There is even speculation that Morocco could eventually sell electricity to Europe.  Another program that Morocco is a participant in is the International Action Program from the Renewable Energy Policy Network, a collaboration between various bodies including the French government and the World Bank that intends to bring electricity to rural areas with the use of photovoltaic kits.
  
  
• Hydro-electric power in (Poland - 4 sites)
  At present we are evaluating 4 river based power generation units in Poland. These sites require minor upgrades to improve the power yield and have existing power sales agreements in place. We would expect these units to be operational and therefore provide yields, in the very short term.
  
  

  Project Sector
  As a renewable energy source hydro electric power has been widely accepted for some time. Small scale hydro electric facilities can help contribute to increasing energy consumption from renewable sources by powering nearby small settlements or entering into a grid. There are already about 14,000 small hydro power plants in the former EU-15 and 2,800 in the EU-10 new member states, helping meet the targets set out in the European Commission’s White Paper on renewable energy. For the less wealthy newcomers to the EU small hydro power may represent a cheaper alternative to larger developments, and can provide electricity for smaller and more remote settlements for whom power access may pose infrastructural difficulties.
  
  Around 84% of electricity generated from renewable sources in Europe comes from hydro power, roughly 13% of the electricity produced in the EU-15, 2% of that total electricity production coming from small scale hydro electricity plants. Europe also has a strong domestic market for hydro electricity and has led development in this area since the technology was pioneered over 150 years ago.

• Wind Turbines (Spain)
  Keats is currently evaluating sites in Catalonia and Aragon.
  
  Project Sector - Wind Energy in Spain
  Wind energy is a renewable energy source with an abundance of opportunities in Spain because of the hills and the large coast line, and a climate well suited to windfarms.  Spain has a capacity for 10,000mw available to its national grid from wind power, making Spain the world's second largest producer of wind energy. Last year Spain was the second largest market for new windfarms, adding a further 1,587 MW of capacity. The EWEA (European Wind Energy Association) is sure that in 30 years wind energy will be an energy source that has a share of the electricity market comparable to that of coal, nuclear and gas today. 
  
  The Spanish have already set a new record this year by producing 8,375 Mega Watts of electricity on 20th March generated from wind power, providing 27% of the nation's electricity supply. This made wind the biggest contributor to the Spanish national grid beating nuclear (6,797 MW) and coal (5,081 MW) into second and third places respectively. One of the most appealing points of wind energy is that the price is unlikely to fluctuate because it is not a finite resource. In fact overall the cost of wind power production has decreased by nearly 90 percent since the 1980s thanks to improvement in technology to 4 cents or less per kilowatt-hour in prime wind.
  

Sustainable Housing:

• Zero carbon footprint luxury apartments  (Thailand)
  Keats are currently part of a development team working on a project to build 150 sustainable, zero emission luxury apartments in Thailand. The site has already been purchased and we are now putting together the plans to secure funding for the project. It is our belief that projects of this type represent a significant opportunity for profit over a 36 month period whilst holding true to our core eco values. More information will be released shortly.
  
  
• Zero carbon footprint homes (UK, Spain)
  Keats have selected several sites in Spain and one in the UK. Of the Spanish sites we have several possibilities across both the long and short term. These range from a test development of three units over an area of 2000m2 to the development of an eco village across 36000m2. We believe that the Spanish market for these type of properties will grow considerably and will be unaffected by conditions elsewhere in the housing market. In the UK we are examining sites in the south East of the country.
  
  
• Green hotels & resorts (UK, Spain, Morocco)
  Keats are currently evaluating several sites in the Mediterranean, these include both costal and inland developments. Our sites are split into renovation and new build. The renovation projects will focus on the use of green technology to minimize the buildings carbon footprint and the new builds will be zero-carbon emissions. We have selected the Mediterranean area because we understand that most of the guests will come from this area and we do not wish to contribute to the pollution from long haul air travel. Keats will launch these sites with an innovative approach to participation.
  
  Project Sector
  The drive towards sustainable development in the hotel industry With the rapid expansion of tourism on an increasingly global scale there is a growing concern over the damage that tourism has upon the natural environment together with an increasingly eco-conscious demand for more sustainable and environmentally friendly developments. There is an escalating need for developers to exercise responsible practices in order to minimize their affect on the environment, avoid the wasting of resources, and to ensure they create a positive and progressive impact upon local communities. International tourism is forecast to reach over 1.56 billion travelers by 2020, thereby doubling the number of people currently traveling (World Travel and Tourism Council (WTTC)) and creating an increased demand for construction in the hotel industry. There is a growing consensus that the industry needs to respond to this demand in a manner which addresses sustainability and environmental issues.
  
  In September 2005, fresh in the wake of the tsunami in South East Asia, the Prince of Wales International Business Leaders Forum (IBLF) and Conservation International (CI) published the first ever international guidance principles for sustainable hotel design and development (Sustainable Hotel Siting Design and Construction) to help promote sustainable pro-environment developments by providing developers with a coherent set of principles that can be applied throughout the tourism industry. The development of these guidelines was met with widespread support from nine of the world’s largest hotel companies including Hilton and Marriott, and made it clear that the industry needs to focus itself towards the design, development and refurbishment along sustainable guidelines in order to minimize its ecological footprint. The case of the 2004 tsunami in South East Asia can be highlighted as an example in which irresponsible man made development contributed to making the destruction of this area worse than it would otherwise have been and consequently the tourist industry has had to be rebuilt again from scratch.