25 Sep 2013 10:09
Camco Clean Energy plc
First Carbon Offsets to be received under California's Cap-and-Trade Program
Camco Clean Energy plc ("Camco") has received notification that it will shortly be issued 54,497 California Carbon Offsets (CCOs)) under California's cap-and-trade program (the "Program"). These form part of the first compliance offsets to be issued under the Program.
The Program commenced operation on 1 January 2013 and certain companies across California who release emissions must buy allowances if they exceed annual limits. Currently the Program applies to the electricity and other industrial sectors and from 2015 it will also apply to the fuel sector which will extend its coverage to almost 85% of emissions, more than the existing European Emission Trading Program (the "ETS"). The Program has a current auction floor price of USD $10.71 that will increase by inflation plus 5% each year, providing more price certainty for market participants than the ETS.
CCOs may be used by Californian market participants for up to 8% of their annual emissions as a cheaper and more flexible way to meet their compliance obligations. The Californian Air Resource Board (the "ARB") has approved four projects types from which eligible CCOs may be generated. These project types are: destruction of ozone depleting substances ("ODS"), agricultural methane, forestry preservation and urban forestry.
Camco has been developing offset projects in North America since 2007 and has a portfolio of projects generating offsets across the ODS destruction, agricultural methane and forestry preservation project types. Camco has developed a significant number of the agricultural methane projects currently listed under the Program which are under its management.
The first project for which Camco has now received approval destroys ozone depleting gases, which would have otherwise been emitted into the atmosphere. Camco has progressed 12 projects through the ARB early-action review process and anticipates further approvals and issuances of CCOs from its projects in the coming months.
Scott McGregor, Chief Executive Officer, said:
"Camco is proud to begin delivering high quality offsets into the California cap-and-trade program, building on a history of delivering offsets from a portfolio of more than 300 projects globally.
"We are excited to see the emergence of a well-developed and regulated offset program. In anticipation of California's program, over the past six years we have developed a local platform with an expert team able to navigate technical and regulatory requirements and a portfolio of projects with operational track records. With the issuance of the first compliance offsets we are in a strong position to deliver consistent volumes of offsets to help meet demand from market participants going forward."
Enquiries:
Camco Clean Energy plc +44 (0) 207121 6100
Scott McGregor, Chief Executive Officer
Jonathan Marren, Chief Financial Officer
N+1 Singer (Nominated Adviser and Broker) +44 (0) 207 496 3000
Andrew Craig
Ben Wright
About Camco Clean Energy
Camco Clean Energy plc (AIM: CCE) is an experienced project developer working to develop, construct and operate projects that contribute to building a sustainable future.
With more than 20 years of successful project delivery we help clients in Asia, North America, Africa and Europe to implement clean energy and emission reduction solutions, reducing costs and maximising financial and environmental benefits. We have an outstanding track record in technical delivery and commercial expertise, working with local industry, multinational companies, governments and regulatory bodies.
Camco Clean Energy has created one of the largest emission reductions portfolios and has structured ground breaking and innovative arrangements for the sale and delivery of emission reductions to compliance and voluntary buyers.