US Carbon Credit Portfolio Sale

RNS Number : 4215O

Camco Clean Energy PLC

28 May 2015

 



28th May 2015

Camco Clean Energy plc

("Camco" or "the Company")

US Carbon Credit Portfolio Sale

Camco Clean Energy plc (AIM:CCE), the clean energy and energy storage company is pleased to announce that it has concluded a structured transaction with a major multinational corporation to assign its rights to the future stream of certain California Carbon Offsets ("CCOs") generated between 2015 and 2020 from the majority of Agricultural Methane projects that it manages on behalf of its dairy partners (the "Transaction").

The Transaction provides price security to Camco's dairy partners for the credits generated by their projects. This significantly de-risks the future cash and returns generated for each diary, including the Jerome and Twin Falls facilities owned by Camco.

The Transaction supports Camco's portfolio management of emissions reduction projects through demonstrating the value to project owners of Camco's track record of managing and delivering California eligible offsets and its ability to aggregate deliveries from multiple projects to secure long-term offtakes from credit-worthy buyers.

As part of the Transaction, Camco has received an initial cash payment of $1.74 million.  Additionally Camco may receive a deferred and conditional payment of up to $0.5 million by 31 December 2015.

Camco expects to complete shortly a further structured transaction of its remaining projects which generate offsets between 2015 and 2020.

Camco will retain its rights to credits generated after 2020 from all the projects included in this portfolio transaction.

Scott McGregor, CEO of Camco said,

"This is a landmark transaction and we believe it to be the first of its type in the California Carbon Offset market underpinning our expertise in the area. The cash received from the sale will be used to support Camco operations, in particular the REDT Liquid Energy storage product which we are in the process of commercialising."

Enquiries

Camco Clean Energy plc	[phone]
Scott McGregor, Chief Executive Officer
Jonathan Marren, Chief Financial Officer
finnCap Ltd	[phone]
Julian Blunt (Corporate Finance)
Tony Quirke (Corporate Broking)
Newgate	[phone]
Tim Thompson
Helena Bogle
Ed Treadwell

About the California Cap-and-trade program

The California's cap-and-trade program ("Program") commenced operation on 1 January 2013 and linked with Quebec's program at the start of 2015.  Companies across California and Quebec who emit more than 25,000 metric tons of CO2 equivalent per year  must acquire allowances or offsets equal to their annual emissions.  The Program initially applied to the electricity and other industrial sectors and from 2015 applied also to the fuel sector extending its coverage to almost 85% of emissions, more than the existing European Emission Trading Program (the "ETS").  The Program has a current auction floor price which increases by inflation plus 5% each year, providing more price certainty for market participants than the ETS.

CCOs may be used by Californian market participants for up to 8% of their annual surrender obligations to provide additional flexibility in how covered entities can meet their compliance obligations.  The California Air Resource Board (the "ARB") has approved the following  project types from which eligible CCOs may be generated: destruction of ozone depleting substances ("ODS"), agricultural methane, mine methane, forestry preservation and urban forestry. 

Camco has been developing offset projects in North America since 2007 and has issued two-thirds of all CCOs issued to agricultural methane projects registered under the  Program.

About Camco Clean Energy

Camco Clean Energy plc (AIM: CCE) is a clean energy development company which combines technical and commercial expertise to finance, develop, and operate renewable energy projects and storage technology.

With 25 years of experience and an outstanding track record throughout Asia, North America, Africa and Europe, Camco works with local developers, governments, development banks, and private investors to implement clean energy projects, policies, and technologies and reduce emissions.

In the last year, Camco has brought an advanced energy storage technology to market (REDT energy), secured an investment advisory fund mandate for African renewables, and has developed utility scale biogas plants in the US.

 

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