Carbon Project Development update

RNS Number : 2097K

Camco International Ltd

12 July 2011

 



Camco International Limited

Carbon Project Development update 30 June 2011

Post 2012 portfolio increases and pre 2012 forward sales

Camco, a global developer of emission reductions and clean energy projects, is pleased to provide the following carbon update for the six month period ending on 30 June 2011.

Highlights:

·    Camco has executed a series of forward sale transactions locking in a favourable price for 1.5m tonnes of carbon credits 

·    Increase in Camco's in-specie volumes and delivery of carbon credits for Q2 2011:

Volume :

o 14% increase in the post 2012 in-specie tonnes to 41.5 million (compared to 36.2m tonnes in Q1 2011)

o Stable pre 2012 in-specie tonnes of 26.6 million (26.6m tonnes in Q1 2011)

Delivery

o 1.9m tonnes delivered (compared to 2.9m tonnes in Q1 2011)

·    Deliveries and sales have resulted in the Company having a strong cash position of €13.9 million (approx.) at 30 June 2011 (€12.4 million in 31 December 2011)

	EU-ETS Eligible Portfolio as of 30 June 2011
Predicted Tonnes (m)	2008-2012			2013-2020
	Delivered or Title Sold	To Deliver and Title Retained	Total	To Deliver
In specie	9.0	17.6	26.6	41.5
Revenue Share	8.6	13.8	22.5	0.4

Camco has achieved a substantial increase in its in-specie carbon post 2012 portfolio which was driven largely by Camco's strong market position in the Chinese market. Camco's commercial strategy is to execute long term structured sales when the market is right, reducing exposure to short term swings in the carbon price.   In the first half of 2011 Camco was successful in executing a series of structured transactions and deliveries from its projects, at a time when the market environment was favourable.

The increase in portfolio volumes means Camco is due to receive a greater number of carbon credits. Projects that are registered and have an operational track record can be forward sold for a higher price relative to the market. Camco's weighted average purchase price remains stable at €8.6 per tonne for future delivery of the pre-2012 portfolio.

Other business update

Camco's Project business during the last quarter achieved financial close and commenced construction of the largest dairy biogas project in North America.

Camco's Advisory business is performing in line with expectations and has secured a strong order book for the balance of the year.  

Scott McGregor, Camco CEO, said: 

 "Camco has achieved further growth in its carbon portfolio in the first half of the year which supports long term value to our clients and the company. We have continued to execute commercial transactions and deliveries from our projects at favourable market prices."

Enquiries:

Camco	[phone]
Scott McGregor, Chief Executive Officer
Shirona Partem, Investor Relations
Singer Capital Markets (Camco Nominated   Adviser and Broker)	[phone]
Jonathan Marren
Peel Hunt (Camco Joint Broker) Andrew Chapman                                                    Daniel Harris	[phone]
M:Communications (Public Relations Advisor)   Charlotte Kirkham	[phone]
Elly Williamson	[phone]
Patrick d'Ancona	[phone]

Notes to editors:

About Camco

Camco International Limited (Camco, AIM: CAO) is a global developer of emission reductions and clean energy projects with operations in the US, the UK, China, Africa, Russia and SEA.

Camco has a 20-year track record in project development, technical delivery and policy development, working with local industry, multinational companies, governments and regulatory bodies.

The Carbon Project Development business has created one of the largest emission reductions portfolios and has structured ground breaking and innovative arrangements for the sale and delivery of emission reductions to compliance and voluntary buyers.

Camco's Clean Energy Project Development and Investment teams collaborate with industry, project developers, equipment providers and investor groups to create emissions-to-energy projects and maximise sustainable energy production across a range of industries; including agricultural methane, industrial energy efficiency, coal mine methane, municipal solid waste, biomass and landfill gas.

The Energy and Carbon Advisory teams provide strategic, commercial and technical expertise accrued over two decades to deliver low carbon energy and sustainable development solutions.

www.camcoglobal.com

Additional notes

Portfolio as of 30 June 2011

Please note this data has been adjusted to reflect projects transferred to the Camco Southeast Asia JV as at 30 Sept 10 of predicted Pre 2012 in specie 0.3 and revenue share 0.1 million tonnes, and Post 2012 in specie 0.9 and revenue share 2.8 million tonnes. 

Progress through stage	2008-2012
	30-Jun-11	31-Mar-11	30-Jun-11	31-Mar-11
	PDD Volume	PDD Volume	Predicted Volume	Predicted Volume
	(m tonnes)	(m tonnes)	(m tonnes)	(m tonnes)
Projects under management
Contracted	126.2	128.7	77.4	81.5
Registered	104.1	103.8	64.7	64.3
Issued	21.8	19.9	21.8	19.9
In specie portfolio
Contracted	48.2	45.9	26.6	26.6
Registered	36.2	35.2	19.2	18.7
Issued	4.0	3.6	4.0	3.6
Revenue share portfolio
Contracted	33.7	35.2	22.5	23.6
Registered	32.5	33.2	21.9	22.7
Issued	8.4	7.7	8.4	7.7
Projects contracted	2012-2020
	30-Jun-11	31-Mar-11	30-Jun-11	31-Mar-11
	PDD Volume	PDD Volume	Predicted Volume	Predicted Volume
	(m tonnes)	(m tonnes)	(m tonnes)	(m tonnes)
Projects under management	156.6	135.4	120.5	103.9
In specie portfolio	65.1	56.7	41.5	36.2

In this trading update, both Project Design Document (PDD) volumes and the Company's own estimates of delivery (risked tonnes) are disclosed with the intention of providing further transparency and guidance on the Company's assets. The following definitions apply to the portfolio numbers provided in the tables above:

PDD Volume - Prior to validation or determination, PDD numbers reflect Camco's anticipated project delivery.

Risked Volumes - Risk adjusted delivery estimates reflecting known and anticipated regulatory, registration, verification, delay, operating and commercial risks across projects in Camco's portfolio

Progress through stage -Represent CDM (Clean Development Mechanism) stage of development of the project or equivalent for JI (Joint Implementation) and VER (Voluntary Emission Reduction) projects

Registered - CERs, ERUs and VERs are registered under the different schemes.

Issued - CERs, ERUs and VERs delivered and issued

Projects Under Management - CERs, ERUs and VERs from all projects that Camco develops for its clients.  Tonnes to Camco's Account - CERs and ERUs Camco receives to its account for services performed or tonnes Camco earns commission revenue on.

 In Specie - CERs and ERUs Camco receives to its account for services performed. Camco's in specie portfolio excludes VERs and includes only tonnes already delivered and to be delivered during the first Kyoto period which ends in 2012.

Revenue Share - Certified emission reductions Camco receives commission revenue for services when delivered.

CERs - Certified Emission Reduction Units that have been generated via the Clean Development Mechanism (CDM) under Article 12 of the Kyoto Protocol.

ERUs - Emission Reduction Units that have been generated via Joint Implementation (JI) under Article 6 of the Kyoto Protocol.

EU-ETS - European Emission Trading Scheme

 

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