Camco Clean Energy (CCE) - Business Operational Update and Board Changes
RNS Number : 2676S
Camco Clean Energy PLC
29 November 2012
29 November 2012
Camco Clean Energy plc
Business Operational Update and Board Changes
Camco Clean Energy plc (the "Company") today announces a business operational
update and changes to its board of directors.
Project Development Update
The Company continues to focus on expanding its clean energy business in North
America, Asia and Africa and its pipeline continues to build momentum in each
area. Our technical expertise, project development experience and established
local experts are the differentiating factor in accessing and evaluating such
Project development highlights for 2012:
· Our 4.5 MW clean energy biogas plant in Jerome, Idaho is now fully
operational and is operating as anticipated, generating revenue from the sale
of power to the grid. This plant continues to be a landmark asset for the
Company and is generating significant new business activity in the US as well
as the other areas where we focus.
· Progress in the construction of Camco South East Asia's 2 MW biogas
development project, which will recover biogas containing methane from palm
oil mill effluent, is on track and is expected to be completed in early 2013.
· Entering into a Joint Venture with MW1 for development of small scale
solar PV projects in Africa.
· Development of a strong pipeline of projects across China, SEA,
Australia, USA and Africa. The project pipeline builds off Camco Clean
Energy's experience in Biogas, Solar and Energy Efficiency.
Update on impact of carbon (CER) price
At the time of the release of our interims, we noted that a fall in the CER
price in the first half had resulted in a downwards carbon fair value
adjustment to revenue of €2.1m and this trend had continued which, if
sustained, would lead to a similar effect in the second half of the year.
Since then, the CER price has continued to fall and therefore the Company is
likely to record a further significant carbon fair value adjustment to revenue
at the year end.
As anticipated, the company has successfully submitted for registration the
majority of its carbon projects and is on track to meet its targeted
registrations by the end of the year, being the latest date when such projects
are eligible for registration. These projects will deliver credits from 2013
to 2020. In accordance with our accounting policies, upon registration and the
projects becoming CDC operational, on a risked basis we record revenue from
these projects. This revenue will also be impacted by the CER price at the end
of the year which, together with the carbon fair value adjustment, will have a
corresponding negative impact on the group's overall result.
As the Company moves toward building sustainable income streams from
developing and owning clean energy assets, the Company continues to be reliant
in the short term on carbon to fund its operating expenses and engages in spot
and structured forward sales of credits, which has the effect of converting
income into cash at that point. At current CER prices, it is not economic or
commercially sensible to make such forward sales and therefore the Company is
taking action to reduce its cash outflow and best conserve its cash resources.
Such action involves focusing on a reduction in central overheads and costs
relating to the carbon business with the aim of delivering a material
reduction in operating expenses. Notwithstanding such reduction, the Company
still anticipates being able to deliver value from its carbon portfolio in the
event the CER price recovers.
The Company also announces that Paolo Pietrogrande and Herta von Stiegel have
both agreed to step down from the board in order to focus on other interests
and allow for a more stream lined and lower cost operation. Paolo will step
down with immediate effect and Herta from 31 December 2012.
Scott McGregor said:
"While European Carbon prices are at a historical low it is sensible for us to
look at our cost base in the short to medium term to cover the impact of these
lower prices. However, we will retain our key capabilities to delivery
services to our partners and commercialise value when carbon prices recover.
The company is resourced and structured to now focus on clean energy project
development. Momentum continues to build in this sector for us and is starting
to produce significant results. We look forward to accelerating development
in clean energy projects and new carbon markets.
I would like to take this opportunity to thank Paolo and Herta for their
advice and help and wish them well for the future."
Camco Clean Energy plc +44 (0)20 7121 6100
Scott McGregor,Chief Executive Officer
Jonathan Marren, Chief Financial Officer
N+1 Singer (Nominated Adviser and Broker) +44 (0) 20 7496
Kreab Gavin Anderson (Investor Relations) +44 (0) 20 7074 1842
Citigate Dewe Rogerson (PR Advisor) +44 (0) 20 7638 9571
Chris Gardner / Malcolm Robertson
Notes to the editor
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
This information is provided by RNS
The company news service from the London Stock Exchange
BOAFESFUAFESESF -0- Nov/29/2012 07:01 GMT
Press spacebar to pause and continue. Press esc to stop.