8 Aug 2008 10:00
8 August, 2008
Leaf completes a $20.9 million investment in
Energia Escalona, S.A. de C.V.
Leaf Clean Energy Company ("Leaf") [LSE: LEAF.L], an AIM listed company incorporated for the purpose of investing in clean energy companies and projects in North America, is pleased to announce the completion of $20.9 million of project financing in Energia Escalona S.A. de C.V. ("Escalona"). The project was developed by JAC Group Inc.
Energia Escalona is a special purpose entity formed to construct and operate a 9.3 MW capacity run-of-river hydroelectric facility on the Las Minas River near Veracruz, Mexico. Escalona will utilize constant river flow from the upstream discharge of Las Minas Hydropower Station to generate clean power that will displace fossil-fueled power on the local grid. The Escalona project is also expected to qualify for certified emission reductions under the Clean Development Mechanism (CDM) of the Kyoto Protocol as an important source of revenues supporting Leaf's financing. The project will aid Mexico's efforts to increase renewable energy's contribution to the domestic energy portfolio, reduce greenhouse gas emissions as well as improve the existing infrastructure for local communities near the project site.
Peter Tom, Chairman of Leaf, said;
"We are excited by the prospect of working with Escalona on a project that maximizes the use of abundant renewable resources in Mexico. This project will bring needed investment to a rural area of Mexico and a new supply of baseload generation to the national grid while allowing Leaf to realize consistent and stable revenues over the life of the project."
Simon Shaw, Chairman of Energy & Climate Advisors, said:
"With fuel prices continually increasing, Escalona represents a unique opportunity for consumers to use renewable resources to produce low cost electricity competitive with traditional fossil fuel generation. This financing arrangement builds on Leaf Clean Energy Company's commitment to renewable power generation and utilizes its partner's expertise and local knowledge to maximize the value of a key Leaf portfolio investment."
Julien Merzoug, Chairman of JAC Group, said:
"JAC Group is pleased to have Leaf Clean Energy Company as a strategic investor to see this important hydroelectric facility become a reality. We are thankful to the local citizens of Las Minas and the Mexican governmental agencies who have given us their full support and help."
- Ends -
For further information please contact:
Simon Shaw
Director, Energy & Climate Advisors +44 (0) 20 7553 2361
Kevin McNulty
Director, Energy & Climate Advisors +1 281 368 4452
Ricardo Nogueira
Director, Energy & Climate Advisors +1 202 289 8833
Daniel Shapiro,
Director Energy & Climate Advisors +1 225 987 7408
Ivonne Cantu / Oliver Goad
Cenkos Securities plc +44 (0) 20 7397 8900
Martin Stott / Ian Beestin +44 (0)7947 915028
Bulletin PR
Julien Merzoug
Chairman, JAC Group Inc. +1 202 412 2777
Notes to Editors:
About Leaf Clean Energy Company
Leaf Clean Energy Company ("Leaf") [LSE: LEAF.L], is a publicly traded $400 million clean energy investment company. Leaf was incorporated for the purpose of acquiring interests in, owning, operating and managing clean energy companies and projects primarily in North America. The sector spans multiple industries, including wind energy, solar energy, energy efficiency, pollution control, emission credit aggregation, waste-to-energy, wave energy, biomass power and biofuels. The company's main investment objective is to achieve long term capital appreciation through its acquired interests in the clean energy sector, as well as through the potential generation and commercialization of carbon credits derived from these projects. Leaf is advised by Energy & Climate Advisors, a joint venture between EEA Group and Shaw Capital.
www.leafcleanenergy.com
www.eeafm.com
www.shawgrp.com/markets/shawcapital
About Energia Escalona
Energia Escalona, S.A. de C. V. is a special purpose entity formed to develop low impact run-of river hydroelectric facilities in Mexico. Escalona will utilize Mexico's regulatory framework for independent power producers.