Camco inks offtake agreement for remaining agriculture methane CCOs

Published 21:39 on June 2, 2015  /  Last updated at 21:39 on June 2, 2015  /  Americas, US  /  Comments Off on Camco inks offtake agreement for remaining agriculture methane CCOs

London-listed Camco Clean Energy on Tuesday announced it had inked a deal to sell the remaining California offsets to be generated by its agricultural methane project portfolio to an unnamed multinational corporation for up to $700,000, following a similar deal last week.

London-listed Camco Clean Energy on Tuesday announced it had inked a deal to sell the remaining California offsets to be generated from its agricultural methane project portfolio to an unnamed multinational corporation for up to $700,000, following a similar deal last week.

The latest deal sees Camco offload the rights to the California Carbon Offsets from its US daily methane projects that were not included in last week’s agreement.

In that arrangement, the company sold for $1.74 million to the same unnamed buyer as today’s deal, most of the offsets it expects to get from the projects it manages on behalf of its partners from the dairy industry.

The two deals also include deferred and conditional payments of up to $900,000 in total by the end of 2015, plus an additional $1 million for CCOs that may be delivered by other US offset projects over the next five years.

Camco said it plans to retain the rights to all its projects from 2020 onwards, presumably because it hopes the offsets will be in more demand by then – and prices higher – amid existing or expanded carbon markets.

“Following the conclusion of the above transactions, and as indicated in our 2014 results, the board has taken the decision to explore strategic alternatives for whether additional value can also be realised from the other US business activities,” the company said.

Shares in the company closed up 0.57 pence or 11% at 5.70 pence in London.

Camco on Monday disappointed investors by reporting 2014 revenue of €9.9 million versus €12.3 million a year earlier – a drop attributed to falling income from its African operations.

The loss was smaller than 2013 due to improved performance in the US and a reduction in administrative expenses.

Revenue from its US operations rose to €5.3 million from €3.3 million, while Camco’s African division dropped to €1.8 million from €2.9 million.

By Mike Szabo – mike@carbon-pulse.com