LONDON (Alliance News) - Camco Clean Energy PLC Tuesday said it has struck a deal to sell its remaining US carbon credit portfolio for up to USD700,000 following a similar deal last week.
The clean and sustainable energy company said it has signed a deal to assign its rights to the remaining stream of California Carbon Offsets generated between 2015 and 2020 from the agricultural methane projects that it manages on behalf of its dairy partners that were not included in a similar deal announced last Thursday.
The first deal that was signed last week was with an unnamed multinational corporation for a total consideration consisting of a USD1.7 million initial payment, plus a further USD500,000 in deferred and conditional payments due by the end of 2015.
On Tuesday, Camco said the second deal for the remaining stream of California Carbon Offsets was with the same multinational corporation. In return, Camco will receive an initial payment of USD300,000 and deferred conditional payments of up to USD400,000 by the end of 2015.
Together with the first transaction, Camco has received a total initial cash payment of USD2 million and can receive deferred and conditional payments of up to a total USD900,000 by the end of 2015.
In addition, Camco said it could receive up to a further USD1 million between 2015 and 2020 dependent on the delivery of California Carbon Offsets from a "limited number" of projects.
From 2020 onwards, Camco plans to retain its rights over the projects, including the ones involved in these two transactions.
"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," said Camco on Tuesday.
On Monday, Camco reported a pretax loss of EUR2.3 million for the year ended December 2014, narrowing from a EUR3.6 million loss in 2013, despite revenue falling to EUR9.9 million from EUR12.3 million as a business restructuring improved its performance in the US and it focused on higher margin work in Africa.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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