Camco: Innovative China MoU

Camco International Ltd
13 November 2007




         Camco and Pioneer Carbon sign innovative China stove agreement


The Camco Group (Camco) and Pioneer Carbon (Pioneer), two pioneering businesses
in the sustainable energy and low carbon markets, are pleased to announce the
signing of a memorandum of understanding and cooperation with Beijing Shenzhou
Daxu Bio-energy Technology Company Ltd and the Government of Yanqing County.

Camco and Pioneer will provide carbon financing and project development support
to the Daxu community household stove replacement programme within Yanqing
County, 60km from Beijing, and will have exclusive rights to the carbon credits
produced.

Although many parts of rural China have access to mains electricity, most
families still cook and heat their homes using stoves that burn coal or wood.
This has led to severe deforestation and contributed significantly to greenhouse
gas emissions. Coal use in particular causes poor air quality in much of China.
Crop waste, widely available in many rural areas, could provide an alternative
source of fuel for cooking.

The Daxu stove design won the Enterprise Award in this year's Ashden Awards for
Sustainable Energy, presented by Al Gore. The stove, used for both cooking and
heating, is over 40%-efficient and reduces carbon dioxide emissions by about 8
tonnes per year. It is specifically designed to use compressed crop waste in the
form of briquettes. It combusts the fuel using a controlled supply of air that
first produces a gas, which is subsequently burned in the stove.

To date, 17,000 stoves have been installed through a direct subsidy by the
County. The market barrier to further implementation is the high initial cost
compared to coal stoves, so carbon financing will ensure the economic viability
of the project on a much larger scale.

The project partners aim to install over 1 million of these stoves within a
three year period saving in the region of 28m tonnes of carbon dioxide emissions
in the first five years. In line with Camco's conservative market reporting
policy, these tonnes will not be added to the contracted project portfolio until
we can be reasonably sure that they will be delivered as expected.

Camco and Pioneer will initially fund a trial of 400 stoves with the objective
of proving the carbon savings, ensuring sufficient fuel supply and the assessing
the achievability of getting the project registered under the Clean Development
Mechanism (CDM). Following the successful outcome of this first phase, Camco and
Pioneer will commit to finance a further 20,000 stoves.

Jeff Kenna CEO of Camco International said 'This project is indicative of the
seamless approach we now have to our end to end carbon business where we can
provide our clients with initial consultancy through to carbon credit
management. This 3-year programme has potential to rollout on a much larger
scale than our current industrial projects. The roll out is similar to a
programme we pioneered in Ethiopia before CDM existed, where over 1 million
stoves were installed. It's a perfect CDM project with clear environmental,
social and economic impact. In addition there is enormous potential for
introducing such technology throughout China, since over 20 million wood and
coal stoves are sold each year. We're delighted to be working in partnership
with Pioneer Carbon, to use our collective experience in this innovative
project.'

Tom Morton, Director of Pioneer Carbon, said: 'Having developed our first
efficient cookstove project over 5 years ago, it is exciting to see that the
growing investment in carbon reductions can now fund projects of this sort of
scale. Pioneer believes that well spent carbon finance, particularly in
technologies such as this, can play a huge part in tackling climate change at
the same time as improving quality of life for millions'



Enquiries:

Camco International Limited                               [phone]
Jeff Kenna, Chief Executive Officer
Scott McGregor, Chief Financial Officer

Camco (China)
Mr Alan Ho                                                [phone]

KBC Peel Hunt Ltd (Nominated Adviser)                     [phone]
Jonathan Marren
David Anderson

Gavin Anderson                                            [phone]
Ken Cronin/Kate Hill/Daniela Stawinoga

Pioneer Carbon Ltd (Nairobi)
Tom Morton, Managing Director                             [phone]

Michael Buick, Communications Manager, Climate Care

(sister Company), Oxford.                                 [phone]



Notes to editors

About Camco

The Camco Group is a pioneering business with an outstanding track record in the
sustainable energy and low carbon markets. The Group consists of three business
segments:

The Camco carbon assets business is a leading project developer with one of the
world's largest carbon credit portfolios. We partner with companies to identify,
develop and manage projects that reduce greenhouse gas emissions, and then 
arrange the sale and delivery of carbon credits to international compliance 
buyers and into the voluntary market.

The consultancy practice includes ESD, The Edinburgh Centre for Carbon
Management (ECCM), Bradshaw Consulting and ESD Sinosphere. The businesses
combine specialist technical, strategic and financial expertise and experience
accrued over two decades.


Camco Ventures works with project and technology developers, early stage
businesses and investor groups to commercialise climate change mitigation 
technologies, projects and services.

Part of this business is the recently announced Climate Leaders' Joint Venture.


About Pioneer

Pioneer Carbon is an innovative project developer which was spun out of Climate
Care twelve months ago. Climate Care was a founder of the rapidly growing
voluntary carbon market, with its first carbon trades over ten years ago. It is
now well established in this market and operates what is believed to be the
world's largest retail CO2 offset scheme. Pioneer services all Climate Care's
project needs, but is also developing new projects and methodologies to provide
credits both for other voluntary market retailers and also the compliance
market.

The Daxu project is one of a number of major new project initiatives designed to
deliver high quality emissions reductions at significant scale whilst
benefitting local communities and economies.


The Beijing Shenzhou Daxu Biomass Energy Technology Company Limited

The Beijing Shenzhou Daxu Biomass Energy Technology Company Limited (Daxu) was
established by Mr Pan Shijiao in April 2005, for the development and
commercialisation of improved biomass stoves. The company has expanded rapidly
and currently employs 160 people. During 2006/07 it had a turnover of 
approximately £0.6 million. Production and turnover are growing rapidly.




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