* Says has over 2 mln T of emissions reductions under
* Peel Hunt cuts to 'sell' vs 'buy', lowers price target
By Nina Chestney
LONDON, July 28 British low-carbon project
developer Camco International Ltd. has expanded its
carbon portfolio in North America, with over two million tonnes
of emissions reductions under contract to date, it said in a
trading update on Thursday.
"North America is an important pillar in Camco's global
strategy, and we are pleased with the rapid progress the team
has made," said Yariv Cohen, Camco president.
The firm's shares were little changed at 19.40 pence at 0855
Camco said earlier this year it would focus on clean energy
opportunities in east Asia and the United States.
It has been concentrating on the development of clean energy
projects in the U.S. agricultural sector, such as anaerobic
digestion and non-manure agricultural feedstock.
On Thursday, Camco said it has over 2 million tonnes of
voluntary carbon credits under management in North America with
over one million tonnes registered.
It has seven projects registered with the U.S. Climate
Action Reserve (CAR) and another four projects on track for
registration by the end of 2011.
It has also monetised over 100,000 credits from CAR
agricultural projects to date through forward and spot
transactions and anticipates further sales during 2011.
"We continue to develop a pipeline of additional projects
accounting for more than 50,000 head of cattle in total and we
are accelerating work on additional platforms to develop
projects from other sources of organic waste," Cohen added.
Peel Hunt cut its recommendation for Camco to 'sell' from
'buy' on Thursday and lowered its price target to 15 pence from
25 pence, to show consistency with peer Trading Emissions
, it said in a note.
On Wednesday, Trading Emissions postponed plans to sell off
its carbon portfolio after this year's fall in carbon offset
prices, pushing its shares down to their lowest levels in more
than two years.
Carbon prices have fallen steeply since June, with
U.N.-backed certified emissions reductions (CERs) slumping
around 20 percent this year due to fears about the over-supply
of credits and on bearish policy and economic factors.
"Investors are clearly dissatisfied with Trading
Emissions... There is a risk that this dissatisfaction spreads
to Camco," said Peer Hunt analyst Andrew Shepherd-Barron.
"To date, Camco has signed some interesting deals (Khazanah,
U.S. dairy) but they are early stage and pre-revenue and hence
risky," he added.
Added to that, the analyst said Camco's U.S. business plans
assume its project portfolio will be delivered successfully.
"The post 2013 portfolio, where we have assumed 12.5 euros a
tonne CER prices and a 20 percent margin, (...) may prove
optimistic given the track record of past disappointment in
delivering against expectations as well as early year prices
currently of 10-11.5 euros," he added.
(Edited by William Hardy)