WORCESTER, Massachusetts and HAMBURG, Germany, November 20 /PRNewswire/ --
- N.serve Sells 300,000 CERs from Basket of Global Projects in Single Auction Event
World Energy Solutions, Inc. (TSX: XWE), an operator of online exchanges for energy and green commodities, today announced N.serve Environmental Services GmbH sold 300,000 primary CERs to Electrabel GDF Suez via the World Green Exchange.
The auction was structured to provide bidders with transparency into project characteristics and help N.serve transact with confidence despite volatility in world carbon markets. N.serve and World Energy tailored the transaction process to address the risks buyers face purchasing primary CERs. CERs were sold from a basket of six registered Clean Development Mechanism (CDM) projects (vintages 2008 - 2012) and were offered across a range of annual target amounts and buffer structures to hedge against under-delivery.
All the projects are generating credits from the reduction of N(2)O in nitric acid plants. Nitric acid CDM projects are a success story of the Kyoto protocol, facilitating the transfer of innovative environmental technologies to emerging economies and generating a significant, predictable stream of credits with clear additionality. The CERs in this auction represent registered CDM projects in Israel, South Africa and South Korea. N.serve is the worldwide leading developer of N(2)O reduction with secondary catalyst technology in nitric acid plants and contributes in the fight against climate change by managing projects with a potential to reduce more than 30 million tonnes of CO(2) equivalent.
Close cooperation between N.serve and World Energy brought a vigorous, intelligent process to this auction that ensured we would attain a market price for our primary CERs closely aligned with secondary CERs, said Marten von Velsen-Zerweck, an N.serve founder and Managing Director. In addition, getting buyers to solicit bids with pre-executed contracts provided us extra security while significantly streamlining the deal closing. This proved to be particularly beneficial given the difficult stage the market is currently in.
In order to meet its European Emission Trading Scheme (EU-ETS) compliance, Electrabel GDF Suez originates carbon credits from its own portfolio, or by negotiating on a bilateral basis with Project Owners/Project Developers or by taking opportunities coming from intermediaries, said Charles Hertoghe, Head of Portfolio Management at Electrabel. In this framework, World Energy not only brought an attractive set of projects to our attention, but also delivered a transparent deal process, enabling us to tailor-make the agreement before the auction date and then close the transaction in only two hours on the auction date.
Added Phil Adams, President and COO, World Energy: We appreciate N.serve validating our process and business model by choosing to do business with us. We believe our platform differentiates us from the competition and ideally suits the evolving needs of the carbon market, namely an increasing demand for transparency, choice and value. This event highlights the continuing momentum we are building in the green space both domestically - with the recent successful RGGI auction - and around the world.
About N.serve Environmental Services GmbH
N.serve Environmental Services GmbH is the world leader in the complete development, implementation and management of nitric acid N(2)O abatement projects with particular focus on the technical and regulatory requirements of N(2)O monitoring with the highest possible accuracy. Its unique approach means that N.serve participates on the overall project risk thus reducing the capital need and risk exposure of plant owners. N.serve has a globally exclusive marketing alliance with Johnson Matthey plc in conjunction with Yara ASA. Mitsui Co., Ltd. holds a qualified minority stake in N.serve.
N.serve is headquartered in Hamburg, Germany and is also represented by a worldwide network of local partners with offices in Chile, Colombia, Israel, Egypt, India, Thailand and South Korea.
About World Energy Solutions, Inc.
World Energy (TSX: XWE) operates online exchanges for energy and green commodities. For buyers and sellers of electricity, natural gas, capacity, and green-energy assets who are impacted by today's volatile markets, World Energy's proven approach has transformed the normally complex procurement process into a powerful, streamlined vehicle for cost savings. In addition to enabling customers to seek competitive pricing on traditional energy commodities, World Energy is taking a leadership position in the emerging environmental-commodities markets. To date, the company has transacted nearly one billion kWh of green power and Renewable Energy Certificates (RECs) as well as a variety of mandatory and voluntary carbon credits. Its award-winning World Green Exchange(R) powers the ground-breaking Regional Greenhouse Gas Initiative's (RGGI) cap and trade program for CO2 emissions. For more information, please visit http://www.worldenergy.com.
This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to: our revenue is dependent on actual future energy purchases pursuant to completed procurements; the demand for our services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; we depend on a small number of key energy consumers, suppliers and channel partners; there are factors outside our control that affect transaction volume in the electricity market; and there are other factors identified in our Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission.
For further information: Investor Relations: Phil Adams, World Energy Solutions, Inc., +1-508-459-8100, padams@worldenergy.com or Craig Armitage, The Equicom Group, +1-416-815-0700 x278, carmitage@equicomgroup.com; Media Relations: Dan Mees, World Energy Solutions, Inc., +1-508-459-8156, dmees@worldenergy.com; Albrecht von Ruffer, N.serve Environmental Services GmbH, +49-40-788-937-08, ruffer@nserve.net
For further information: Investor Relations: Phil Adams, World Energy Solutions, Inc., +1-508-459-8100, padams@worldenergy.com or Craig Armitage, The Equicom Group, +1-416-815-0700 x278, carmitage@equicomgroup.com; Media Relations: Dan Mees, World Energy Solutions, Inc., +1-508-459-8156, dmees@worldenergy.com; Albrecht von Ruffer, N.serve Environmental Services GmbH, +49-40-788-937-08, ruffer@nserve.net
Comments