Coal mine methane producer Alkane saw its shares crash as it released interims warning that low wholesale electricity prices are likely to last for a while. The company made a loss of £113,000 in the 6 months to June, despite interest receipts of £375,000, after a profit last year. Turnover from its 4 operations in Yorkshire and Derbyshire was stable at £552,000, while cash reserves were reduced from £24m to £17.3m. Alkane has now decided to delay the planned opening of 6 sites from the second half to 2003. The company does not actually generate electricity, but passes on the methane produced from abandoned coal mines to those that do. Chief executive David Cross says that, with the market so tight, it is important to have a customer situated close to its facilities in order to cut down on the costs of electricity generation. Three of its sites have suffered from production difficulties, but hopes remain that coal mine methane production will obtain Government subsidies under 'green energy' legislation. It should start receiving payments of 1.5p per therm under Climate Change Levy legislation from 2003 onwards. The firm is also hoping to be included in larger-scale Emissions Trading Scheme legislation and claims ministerial support for its lobbying. Profits are being targeted for 2004. Reported net assets were £31.5m at the end of June. Speculative.