Strategic update on US business

RNS Number : 2457L

Camco International Ltd

28 July 2011

 



Camco International Limited ("Camco" or "the Company")

Strategic update on US business

Camco, a global developer of emission reductions and clean energy projects, is pleased to provide the following update on its US business.

Highlights

·    Camco's large dairy biogas project in the US is now under construction and on track to generate energy and revenues in the first quarter of 2012

·    Camco currently has over 2 million tonnes of carbon credits under management in North America with over 1 million tonnes registered

·    Camco, with its partners, was awarded a share of $1.5 million grant from the US Department of Agriculture to develop a program to improve nitrogen management practices on farms and reduce N₂O emissions, a potent greenhouse gas

Over the past 3 years Camco has expanded its presence in North America, making major progress in the first half of 2011.  One of the company's primary areas of focus is the development of clean energy projects in the agricultural sector.  Anaerobic digestion of manure from livestock operations in the US has the potential to produce more than 4,500 MW of base load generation and large volumes of emissions reductions. Non-manure agricultural feedstock has significant potential to generate renewable energy as well as other environmental benefits.

Camco now has an established track-record in converting emissions reductions from agricultural sources into high-quality, compliance eligible offsets.

Camco's project development in the US

Camco has put together a consortium AgPower Group LLC ("AgPower") with extensive experience in building anaerobic digesters that successfully convert manure and other agricultural organic feedstock into renewable energy.  The initial focus of AgPower Group is on the dairy sector with a view to expanding into other agricultural feedstock areas.

As announced on 16 May 2011, Camco is currently constructing what will be the largest dairy biogas project in North America, in Idaho, designed to capture biogas from cow manure and provide the fuel for 4.5MW of electrical generation capacity. This capacity translates into 39.4 million kWh of generation. Completion of construction is anticipated in the first half of 2012. The project is wholly owned by Camco and operated by AgPower.

Camco's Idaho project will convert manure from over 10,000 cows into energy. Cement work is scheduled for completion in the third quarter of 2011, the generators for the project have been ordered and the installation is expected to start generating power in the first quarter of 2012.

Camco's Carbon project development in the US

Camco has been expanding its carbon portfolio in North America and has over 2 million tonnes of emissions reductions under contract to date.

Camco has seven projects registered with the Climate Action Reserve and another four projects on track for registration by the end of 2011.

Camco has monetised over 100,000 credits from CAR agricultural projects to date through a combination of forward and spot transactions and anticipates further sales during 2011.

Existing Projects:	Tonnes (2011-2022)
Under management	2,001,000
Registered1	1,004,500
Undergoing registration	996,500
Issued	281,061

Camco awarded a share of a $1.5 million grant

Camco, together with its project partners, has been awarded a $1.5m grant funded by the United States Department of Agriculture to help farmers adopt nitrogen best management practices and monetise carbon offsets generated by reduced emissions of nitrous oxide. 

The program, led by the Fertilizer Institute, will focus on creating an efficient system to reduce waste and emissions associated with the fertilisation of crops with corn and soybean producers in the Midwest. The project will create a framework for the generation of carbon credits from the reduction of emissions, delivering revenue to farmers through the sale of these credits into both voluntary and compliance markets.

Camco is part of the Climate Action Reserve workgroup which is developing a Nutrient Management methodology to allow producers to register Climate Action Reserve offsets.

Yariv Cohen, President of Camco commented: 

"North America is an important pillar in Camco's global strategy, and we are pleased with the rapid progress the team has made. We continue to develop a pipeline of additional projects accounting for more than 50,000 head of cattle in total and we are accelerating work on additional platforms to develop projects from other sources of organic waste".

¹ N.B. Registered under the Climate Action Reserve or Verified Carbon Standard

Enquiries:

Camco	[phone]
Scott McGregor, Chief Executive Officer
Shirona Partem, Investor Relations
Singer Capital Markets (Camco Nominated   Adviser and Broker)	[phone]
Jonathan Marren
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

 

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