Camco International Ltd
03 December 2007
Landfill methane acquisition in the USA
The Camco Group ('Camco'), a pioneering business in the sustainable energy and
low carbon markets, is pleased to announce the purchase of a greenhouse gas
reduction project in Dallas, Texas, as a first investment for its planned asset
investment vehicle.
The McCommas Bluff landfill ('McCommas') is one of the largest operating
landfills in the USA and receives a significant proportion of the municipal
waste from the Dallas metropolitan area, and is operated by the City of Dallas.
The existing gas processing operation converts waste methane recovered from the
landfill into pipeline quality gas for sale into the Texas gas market.
Camco has acquired a 17-year lease to develop the site for the improved
collection and destruction of methane, the gas processing plant and associated
equipment from William Snyder, Chapter 11 Trustee for McCommas LFG Processing
Partners, LP and McCommas Landfill Partners, LP.
The McCommas project is intended to be the anchor asset for Camco's planned
asset investment vehicle. Camco intends to transfer the McCommas asset into this
vehicle whereupon it will be managed by a dedicated operations team based in
North America.
The purchase price paid by Camco is USD11.25m (in cash) and will be followed by
an improvement and expansion program (funded by the asset investment vehicle
once transferred) to ensure maximum capture of fugitive methane from the
landfill both now and into the future. The planned works will aim to maximize
the capture and destruction of methane gas - a potent greenhouse gas that is one
of the most harmful contributors to global warming. Management believe that the
deal represents good value for shareholders, and demonstrates Camco's capacity
to originate and develop carbon-based assets in new markets such as North
America.
Camco will provide, on an ongoing basis, all qualification and carbon asset
management services to the McCommas project necessary to quantify and validate
emission reduction credits expected to be generated by the planned improvement
works. This is likely to include the sale of Verified Emission Reductions (VERs)
that are expected to exceed 2-3 million tonnes CO2 equivalent over the next 7
years.
Commenting on the project Jeff Kenna, CEO of Camco, said
'In acquiring rights to one of the largest methane emitting landfills in the
USA, McCommas represents one of Camco's first tangible steps in building an
integrated climate change business in North America. The project will bring
together the diverse range of skills and experience held within the Group, from
project support to emission reduction qualification, placement of carbon credits
with corporate buyers and investment management. It enables Camco to demonstrate
to its clients and partners the full range of capabilities in climate change and
carbon finance that exists within the Group.'
Enquiries:
The Camco Group +44 (0) 20 7121 6100
Jeff Kenna, Chief Executive Officer
Scott McGregor, Chief Financial Officer
KBC Peel Hunt Ltd (Nominated Adviser) +44 (0) 20 7418 8900
Jonathan Marren
David Anderson
Gavin Anderson +44 (0) 20 7554 1400
Ken Cronin
Kate Hill
Daniela Stawinoga
Notes to editors:
Camco
The Camco Group is a pioneering business with an extensive track record in the
sustainable energy and low carbon markets. The Group consists of three business
segments:
The Camco carbon assets business is a leading project developer with one of the
world's largest carbon credit portfolios. We partner with companies to identify,
develop and manage projects that reduce greenhouse gas emissions, and then
arrange the sale and delivery of carbon credits to international compliance
buyers and into the voluntary market.
The consultancy practice includes ESD, The Edinburgh Centre for Carbon
Management (ECCM), Bradshaw Consulting and ESD Sinosphere. The businesses
combine specialist technical, strategic and financial expertise and experience
accrued over two decades.
Camco Ventures works with project and technology developers, early stage
businesses and investor groups to commercialise climate change mitigation
technologies, projects and services. Part of this business is the recently
announced Climate Leaders' Joint Venture.
This information is provided by RNS
The company news service from the London Stock Exchange