18 Apr 2011 07:00
Camco International Limited
Carbon Project Development Update 31 March 2011
Camco, a global developer of emission reductions and clean energy projects, is pleased to provide the following carbon project development update as at 31 March 2011.
Portfolio Highlights
- Carbon tonnes in Portfolio (compared to last update 30 Sept 10):
o Pre 2012 in specie 26.6 million (3% increase)
o Post 2012 in specie 36.2 million (33% increase)
- Progress:
o In specie portfolio registered 2.7 million tonne increase on 30 Sept 10 (13% increase)
o Total 70% Pre 2012 in specie portfolio now registered
- Delivery: 3.4 million tonnes delivered in Q1 2011 (26% increase on Q4 2010 last update)
Carbon Price
- EU-ETS eligible emission reductions as at 31 Mar 11 were trading with a forward curve for CERs starting at €13 per tonne for Dec-2011 delivery, increasing to €17 per tonne for Dec-2020 delivery; on average forward contracts prices are up 19% over the quarter*
- Camco's weighted average purchase price remains stable at €8.58 per tonne for future delivery of the pre-2012 portfolio
EU-ETS Eligible Portfolio as of 31 March 2011 | ||||
Predicted tonnes (m)
| 2008-20121 | 2013-2020 | ||
Delivered or Title Sold | To Deliver and Title Retained |
Total | To Deliver | |
In specie portfolio | 8.9 | 17.72 | 26.6 | 36.23 |
Revenue share portfolio | 7.7 | 15.9 | 23.6 | - |
Camco derives value from its portfolio by selling credits before delivery on a non-guaranteed basis or spot selling credits as they deliver. The increase in portfolio volumes means Camco is due to receive a greater number of carbon credits from projects. Projects that are registered and have an operational track record can be forward sold for a higher price relative to the market. Camco derives its margin from the difference between its forward sales or delivery price and its purchase price for its In Specie portfolio. For Revenue share portfolio Camco receives a commission on the sale of tonnes.
The substantial increase in the percentage of projects registered demonstrates Camco's continued technical and qualification success as well as reflecting increased efficacy and transparency in the UN qualification process.
* ICE launched trade in futures for delivery from Dec 2013 to Dec 2020 on 24 January 2011
1 The EU has confirmed Camco's project types are eligible for compliance purposes in the EU-ETS 2013-2020 period. Camco's projects are expected to be registered prior to 31 Dec 12 and as such eligible for the 2013-2020 EU-ETS period.
2Camco has agreed sales for a further 4.6 million of these credits but will transfer title and receive payment upon delivery. Camco has continued to commercialise credits in the market over the past 6 months as they have progressed through development stages.
3 In addition to contracts for predicted 36.2 million tonnes, Camco holds signed contracts with a number of terms yet to be defined for up to a further predicted 27.6 million tonnes.
Scott McGregor, Camco CEO, said:
"Camco has seen an excellent start to the new year with growth in both our Pre 2012 and Post 2012 portfolio volumes, a remarkable success for our origination business. The increasing forward price curve provides good prospects."
Enquiries:
Camco | +44 (0)20 7121 6100 |
Scott McGregor, Chief Executive Officer | |
Yariv Cohen, President | |
Singer Capital Markets (Camco Nominated Adviser and Joint Broker) | +44 (0)20 2305 7628 |
Jonathan Marren | |
Peel Hunt (Camco Joint Broker) | +44 (0)20 7418 8900 |
Andrew Chapman | |
Daniel Harris | |
M:Communications (Camco Public Relations Advisor) | +44 (0)20 7920 2331 |
Charlotte Kirkham | +44 (0)20 7920 2339 |
Elly Williamson | +44 (0)20 7920 2347 |
Patrick d'Ancona |
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
Please note this data has been adjusted to reflect projects transferred to the Camco Southeast Asia JV as at 30 Sept 10 of predicted Pre 2012 in specie 0.3 and revenue share 0.1 million tonnes, and Post 2012 in specie 0.9 and revenue share 2.8 million tonnes.
Progress through stage | 2008-2012 | |||
31-Mar-11 | 30-Sep-10 | 31-Mar-11 | 30-Sep-10 | |
PDD Volume | PDD Volume | Predicted Volume | Predicted Volume | |
(m tonnes) | (m tonnes) | (m tonnes) | (m tonnes) | |
Projects under management* | ||||
Contracted | 128.7 | 136.8 | 81.5 | 85.1 |
Registered | 103.8 | 90.5 | 64.3 | 57.6 |
Issued | 19.9 | 13.8 | 19.9 | 13.8 |
In specie portfolio | ||||
Contracted | 45.9 | 45.8 | 26.6 | 25.7 |
Registered | 35.2 | 29.0 | 18.7 | 16.0 |
Issued | 3.6 | 2.3 | 3.6 | 2.3 |
Revenue share portfolio | ||||
Contracted | 35.2 | 38.7 | 23.6 | 26.2 |
Registered | 33.2 | 26.7 | 22.7 | 19.5 |
Issued | 7.7 | 5.8 | 7.7 | 5.8 |
Projects contracted | 2012-2020 | |||
31-Mar-11 | 30-Sep-10 | 31-Mar-11 | 30-Sep-10 | |
PDD | PDD | Predicted Volume | Predicted Volume | |
Volume | Volume | |||
(m tonnes) | (m tonnes) | (m tonnes) | (m tonnes) | |
Projects under management | 135.4 | 121.9 | 103.9 | 93.2 |
In specie portfolio | 56.7 | 43.6 | 36.2 | 27.2 |
*Camco only reports EU-ETS eligible credits within its in specie and revenue share portfolios. There is a small number of Voluntary Emission Reduction (VER) projects that are registered under non UN schemes reported within Camco's projects under management for 2008-2012.
In this trading update, both Project Design Document (PDD) volumes and the Company's own estimates of delivery (predicted 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.
Predicted Volumes - Previously called "Risked Volumes" and based on past performance and experience these are now the predicted volumes based on risk adjusted 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)
Registered - CERs and ERUs.
Issued - CERs and ERUs delivered and issued
Projects Under Management - CERs and ERUs from all projects that Camco develops for its clients.
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.
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