FFWD.L Regulatory News (FFWD)

22 Jan 2007 07:01

London Asia Chinese Private Equity22 January 2007 22 January 2007 LONDON ASIA CHINESE PRIVATE EQUITY FUND ("LACPEF" or "the Fund") £4 MILLION INVESTED IN CLEAN ENERGY BUSINESS LACPEF, the AIM listed China focused investment fund, announces that it hasinvested £4 million in Singapore incorporated Asia Clean Energy Pte ("ACE" or "the Company"), an investment company specialising in the clean energy sectorwith a focus on China. ACE's primary focus is investing in coal mine methane power generating projects,but it will also invest in small-medium hydropower projects as well as inrelated high-tech companies. ACE has brought together an experienced management team with a successful trackrecord of setting up and floating businesses in these sectors. ACE has raisedover US$30 million in new capital to finance the acquisition of energy andenvironment (E&E) focused businesses. This will be done largely via managementbuy-outs and the acquisition of businesses from state owned and largerenterprises, using the management teams' contacts and experience in the field.Deals already identified and undergoing due diligence include acquiringcontrolling stakes in coal mine methane power projects totaling 200 MW, andacquiring majority stakes in small-medium size hydropower projects totaling 100MW. ACE will also look to trade the carbon credits generated by its investeeprojects. The Fund recently took a stake in China CDM Exchange Centre, aleading Chinese carbon credit advisory firm which manages what is believed to bethe only on-line platform for environmental commodity transactions in China. The Asian market for products and services in the renewable energy, energygeneration and clean technology sectors is rapidly expanding, and thosebusinesses involved are actively seeking capital investment. The Fund hasalready invested in five companies in the E&E sector, including wind energy,ethanol production, thermal equipment and infrastructure and carbon trading. Simon Littlewood, Executive Director of the Fund, commented: "The E&E sector isone of the most exciting investment areas in China at present, as a result ofboth legislation encouraging a switch from fossil fuel and polluting technologyto cleaner technology, and the improved economics of the technology. The sectoris still heavily undercapitalised, as many investors lack the expertise andexperience to be able to assess the opportunities and risks, particularly inChina. ACE has a management team that we have known for some time, and whichhas proven not only its skill in the sector, but its ability to make money forinvestors." For further information please visit www.londonasiafunds.com or contact: Simon Littlewood John West/Matt Ridsdale Hugh FieldLondon Asia Capital Tavistock Communications Collins Stewart LimitedTel: 020 7355 7928 Tel: 020 7920 3150 Tel: 020 7523 8000 Background information Coal Mine Methane According to the National Energy Development Program for the 11th Five YearPlan, by 2006 the utilization of coal mine methane should reach 800 millioncubic meters; and by 2010 5 billion cubic meters and upwards, with electricpower generated by coal mine methane to reach 3 billion cubic meters and theinstalled capacity of coal mine methane achieve 1,500MW, against only 200MW atpresent. Carbon Credits The global carbon market, already worth US$10 billion in 2005, is growingexponentially. The Kyoto Protocol officially became a legally binding treaty inFebruary 2005, with 163 countries joining. Developed countries are obliged toreduce their collective emissions by 5.2% during 2008-2012 and they are allowedto obtain emission credits from developing countries, which have no obligationsfor emission reduction for the near future. Already the largest seller, China islikely to continue to dominate the sell side as a CDM host country with nobinding obligation to meet emission reduction targets before 2012. China morethan doubled its number of projects registered in 2005 compared to 2004. This information is provided by RNS The company news service from the London Stock Exchange