16 May 2011 07:00
16 May 2011
Camco International Limited
Financial close and construction of largest dairy biogas project in North America
Camco, the global developer of greenhouse gas emission reductions and clean energy projects, is pleased to announce the financial close and beginning of construction on the largest dairy biogas project in North America.
The project, which is wholly owned by Camco and operated by the consortium AgPower Group LLC, involves the installation of anaerobic digesters to convert cow manure into enough biogas to fuel 4.5MW of generation capacity. Proven anaerobic digesters of a type already installed in over 50 farms across the US to date will convert cow manure from a US dairy farm based in Idaho into clean electricity.
The project is fully financed for an estimated total project construction cost of less than $25 million, comprising a combination of construction financing and debt financing. The project qualifies for the federal grant programme established by the American Recovery and Reinvestment Act of 2009, under which 30% of eligible construction costs are reimbursed. This financing structure was enabled by the strength of the underlying construction and off-take agreements and the track record of Camco and its development partners.
A 20-year power purchase agreement is in place and the facility also has multi-year contracts for the Sale of sterilized fibre. The renewable energy certificates and emission credits qualify under California's new renewable energy and greenhouse gas regulations.
Civil and foundation work is well underway and completion of construction is anticipated in the first half of 2012.
Yariv Cohen, Camco President said:
"Closing financing and commencing construction on the largest dairy biogas project in the US is a major achievement for the Camco North America team. The USDA target has outlined potential to roll out anaerobic digesters across 8,000 farms with potential generation of over 1,500 MW in the US and we are in a pole position to lead this effort. Camco is rapidly accelerating its activities globally in 2011 and this achievement, together with recent achievements in China, demonstrates the company's regionally led strategy and the strength of our teams on the ground."
Enquiries:
Camco +44 (0)20 7121 6100
Scott McGregor, Chief Executive Officer
Shirona Partem, Investor Relations
Singer Capital (Nominated Adviser and Broker) +44 (0)20 3205 7628
Jonathan Marren
Peel Hunt (Joint Broker) +44 (0)20 7418 8900
Daniel Harris
M:Communications (Public Relations Advisor)
Charlotte Kirkham +44 (0)20 7920 2331
Elly Williamson +44 (0)20 7920 2339
Patrick d'Ancona +44 (0)20 7920 2347
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 as 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
About AgPower Group
AgPower Group is a venture of experienced partners formed by Camco for the purpose of building and operating renewable energy projects in the agriculture sector. Its members make AgPower Group one of America's most experienced developers of anaerobic digester projects that convert manure and agricultural waste into renewable energy. The Idaho project is one of several in the Company's development pipeline and the largest to date.