28th May 2015 07:40
LONDON (Alliance News) - Shares in Camco Clean Energy PLC were trading higher early on Thursday after the company said it has struck a deal to sell its US carbon credit portfolio for a total of USD2.24 million.
Shares in Camco were up 9.5% to 5.75 pence on Thursday, one of the best performers in the AIM All-Share.
The clean energy and energy storage company said the consideration for the portfolio will include a USD1.74 million initial payment, plus a further USD0.5 million in deferred and conditional payments due by the end of 2015.
The deal has been signed with an unnamed multinational corporation and will see Camco assign the buyer its rights to the future stream of California Carbon Offsets generated from 2015 to 2020 from agricultural methane projects Camco manages on behalf of its dairy industry partners.
Camco also expects to sign a further structured deal on its remaining offset-generating projects imminently.
"This is a landmark transaction, and we believe it to be the first of its type in the California Carbon Offset market, underpinning our expertise in the area. The cash received from the sale will be used to support Camco operations, in particular the REDT Liquid Energy storage product which we are in the process of commercialising," said Camco Chief Executive Scott McGregor.
By Sam Unsted; [email protected]; @SamUAtAlliance
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