RED.L Regulatory News (RED)

28 October 2010

Camco International Limited

Carbon Project Development Update

Camco International Limited ('Camco' or 'the Company'), a global developer of emission reductions and clean energy projects, is pleased to provide the following carbon project development update for the three month period ending 30 September 2010.

Highlights

·; Increase in newly registered projects in the third quarter, forecast to deliver risked 5.1 million tonnes of Certified Emission Reductions ('CERs')

·; Issuance of 1.2 million tonnes of CERs in the third quarter

·; Secured option contracts for post 2012 tonnes of CERs that amount to risked volumes of 28.1 million tonnes. The contracts were secured over the last few years and are now reported for the first time given there is now active interest from buyers and market transactions taking place

Projects totalling risked 5.1 million tonnes of CERs achieved registration in the period, a clear sign of acceleration in the regulatory process (H1 2010: 3.2 million tonnes). This provides further indication of the improving delivery times as a result of procedural changes by the UN Executive Board.

The in-specie and revenue share portfolios are stable, with issuance of a further 1.2 million tonnes of CERs during the third quarter building on strong performance in the first half of the year (H1 2010: 4.3 million tonnes).

With the recent increase in clarity on CDM eligibility for post 2012 tonnes into the EU-ETS, Camco is reporting for the first time options it has secured over the last few years in CERs that are forecast for issuance after the first Kyoto period (post 2012). The contracted volumes amount to risked 28.1 million tonnes in-specie and risked 2.8 million tonnes of revenue share agreements. Further contractual rights of up to risked 27.6 million tonnes give a total risked volume of 58.5 million tonnes.

Portfolio as of 30 September 2010

* In addition to contracts for risked 28.1 million tonnes, Camco holds contractual rights of up to a further risked 27.6 million tonnes.

Yariv Cohen, Camco Chief Carbon Officer, said: 

"It is encouraging to see the existing carbon portfolio appreciate in value as more projects are registered and credits delivered, as well as the strong potential for high upside in the post 2012 market. We look forward to continued progress in the final quarter of the year."

Enquiries:

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 groundbreaking 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

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 - Risked 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 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