RED.L Regulatory News (RED)

25 Apr 2006 07:00

Camco International Ltd24 April 2006 Camco International Limited announces first day of dealings on AIM Camco International Limited ("Camco" or the "Company"), an originator andco-developer of Carbon Credits, today announces the admission of its ordinaryshares to trading on AIM, a market of the London Stock Exchange plc. As part of the AIM admission, Camco has raised £24.9m in a placing conducted byKBC Peel Hunt at 64p per share. At the placing price, Camco has a marketcapitalisation of approximately £83m. Camco co-develops projects that reduce greenhouse gas emissions with a range ofwell-capitalised enterprises, such as heavy manufacturers, coal mining groupsand utilities. Camco manages a significant portfolio of Carbon Credits that havearisen from these emission reduction projects. Tristan Fischer, Camco's Chief Executive Officer, said: "Coming to AIM is asignificant milestone for Camco and we are very excited about the future. Thereis increasing pressure on companies and countries to reduce greenhouse gases,and Camco's strong position in the key Carbon Credit supply markets of China andRussia places us well to develop and innovate further." In addition, Fischer added: "In the three months up to the end of March alone,several new contracts were signed in China and Russia that increased the grossportfolio of Camco's Carbon Credits by 16.8 million tonnes, so there is realscope for taking the business forward." Contact:Camco International LimitedTristan Fischer, CEO 020 7256 7979 Gavin Anderson & Company (for media enquiries)Ken Cronin/Janine Brewis 020 7554 1400 KBC Peel Hunt LtdJonathan Marren/David Anderson 020 7418 8900 Business Summary: • Camco is a significant originator of Carbon Credits, partnering with its clients that are typically well-capitalised companies, such as heavy manufacturing enterprises, coal mining groups and utilities to source Carbon Credits. • Camco's key markets are China and Russia, where the Company has significant expertise, and which are two of the largest potential sources of Carbon Credits. In other regions, Camco is developing business through its strategic partners. • Camco has originated and/or has a financial interest in 51 projects that are expected to generate 97.2 million Carbon Credits. These comprise 71.5 million Carbon Credits from 36 projects under exclusive contract to Camco and a further 25.7 million Carbon Credits from 15 projects in late stage negotiation. • Camco works together with its clients to convert Carbon Credit opportunities into assets of value in international emissions trading markets. The Camco proposition seeks to reduce the client's exposure to the costs and risks of embarking on what can be an unfamiliar and complex process. • Camco offers to invest its own experience, expertise and human and financial resources to undertake the work necessary to qualify the project and to meet some or all of the necessary clean development mechanism ("CDM") and joint implementation mechanism ("JI") origination and development costs. These may include, inter alia, documentation costs, validation costs, verification costs, CDM-EB registration/management fees and third party experts' costs. • Camco has considerable experience and expertise in proposing new methodologies, preparing PDDs and guiding projects through this complex regulatory process. To date, an executive of Camco has prepared two new Approved CDM Methodologies and a strategic partner of Camco has successfully developed one further Approved CDM Methodology. • Camco engages its clients depending on their circumstances and has three main contractual models which are set out in Carbon Asset Development Agreements ("CADAs"): (i) service fee arrangements, (ii) carbon arrangements (i.e. the right to receive a percentage of Carbon Credits in specie at no cost, or to purchase a percentage of the Carbon Credits at favourable prices for its own account) and (iii) project development arrangements. These contractual models are adjusted to meet country specific legal and regulatory requirements. • As well as its own capabilities, Camco maintains strategic partnerships in many markets, including its core markets, which make important contributions to Camco's capacity to originate and deliver projects. Camco uses the network, strengths and resources of these strategic partners for, but not limited to, deal origination, technology promotion and for additional CDM development support when needed. The Market • Carbon Credits are used to meet compliance targets under the Kyoto Protocol and related climate change legislation. In order to mitigate the effects of global warming, signatories to the Kyoto Protocol such as Canada, the EU15 and Japan, have agreed to reduce their GHG emissions to below 1990 levels. This can be done by taking domestic action to reduce GHG emissions or by purchasing Carbon Credits from qualifying projects in developing countries, such as China, under the CDM and in developed countries, such as Russia, under the JI programme. • The market for Carbon Credits has grown rapidly in recent years and the Directors expect that this growth will continue. Up to June 2005, Point Carbon estimated that 121 million CERs and ERUs (in aggregate) have been transacted. Since then, transactions involving more than 140 million CERs and ERUs (in aggregate) have taken place. This suggests a total of over 260 million CERs and ERUs have been transacted at prices ranging from A2 to A18 per tonne depending on the contractual arrangements between parties. This information is provided by RNS The company news service from the London Stock Exchange