News
AgCert Makes Operational Progress
Dublin, Ireland – 3 November 2005
AgCert is pleased to announce progress has been made with the Company’s operations, particularly with regard to two of the performance measures which had previously fallen behind expectations, namely the number of digester completions and time taken to complete the modification of animal waste management systems.
From 10 September 2005 to 31 October 2005, an additional 57 farms have been completed, bringing the total completed number of farms to 131. AgCert is now on track to exceed its internal operational target of 170 completed farms by 31 December 2005. In addition, the recent completion time for digester construction has been averaging less than 12 weeks, compared with 16 to 20 weeks for the farms completed up to 10 September 2005.
As of today, AgCert has 23 Project Design Document (PDDs) in the Clean Development Mechanism (CDM) regulatory process. AgCert anticipates nearly doubling its number of PDD submissions over the next 90 days and management remains focused on seeking to improve other operational metrics. Although the Directors are encouraged by the Company’s progress, they are not yet in a position to revise their previous guidance on the timeframe for achieving the Company’s inventory and sales targets for 2005 and 2006, and expect to provide a full update by year end.
Bill Haskell, interim CEO of AgCert said:
“I am extremely pleased with the progress made during the last several weeks. We have increased our farm completion rate and shortened the average completion time. We are continuing in our search for a new CEO and we will advise further when it is appropriate to do so.”
For further information:
| AgCert International | + 353 1 245 7400 |
| Bill Haskell, CEO | |
| Paul D'Alton, CFO |
AgCert media inquiries:
| Maitland | + 44 (0)20 7379 5151 |
| Liz Morley / Brian Hudspith |
About AgCert AgCert International plc is listed on the London Stock Exchange. The Group was founded in 2002 to produce and sell reductions in greenhouse gas emissions (referred to as "Offsets") from agricultural sources on an industrial scale. These Offsets are intended to satisfy the requirements of the Kyoto Protocol and will be capable of being traded on the newly established European cap and trade system, the European Union Emissions Trading Scheme ("EU-ETS"). The Group's methods enable it to produce Offsets through the capture and combustion of Biogas containing greenhouse gases, primarily methane, emitted from animal waste management systems ("AWMSs"). To achieve this, AgCert has developed proprietary systems and processes which have been designed to be fully scalable and adaptable to the AWMSs of large confined animal feeding operations including those for swine, dairy and poultry. The Group has entered into one of the largest reported forward sales contracts relating to the supply of CERs, a form of Offset, and in total has contracted under forward sales contracts to deliver CERs to the value of approximately €74 million to customers including Nuon, BHP Billiton and EDF. More broadly, the Group intends to sell its Offsets to large industrial emitters, governments, funds and energy traders. The entry into legal force of the Kyoto Protocol on 16 February 2005, along with the EU's voluntary early adoption of emissions reduction targets under the EU-ETS, has created a significant demand for Offsets. The purchase of Offsets enables greenhouse gas emitters, including countries and commercial entities such as power generators, to ensure that their net greenhouse gas emissions remain within specified limits in order to avoid financial penalties. In addition, the Directors believe there will be significant speculation in Offsets. Point Carbon forecasts that the global market for Offsets is likely to reach €34 billion by 2010 including primary demand and secondary trading. Estimates of the primary demand in Europe for Offsets are 60 to 70 million Offsets per annum until 2008, rising to approximately one billion Offsets per annum from 2008 to 2012, when considered globally. AgCert has identified agriculture as one of the largest commercial opportunities for Offset production and expects to be a leading supplier of Offsets from this sector. Agriculture is responsible for around 20 per cent of the world's annual greenhouse gas emissions. Under the Kyoto Protocol, any reductions in greenhouse gas emissions derived from this sector qualify as CERs provided they are derived from projects that have been validated by a DOE and Registered by the UN Executive Board and are properly verified and certified according to the stringent requirements laid down by the UN. AgCert's proprietary systems and processes include one of only two UN approved large scale methodologies for the production of Offsets in the agricultural sector. This has given the Group early strategic advantages in capitalising upon the rapidly evolving carbon based emission trading markets. .The Group has initiated the modification of AWMS on 528 farms in Brazil and Mexico which are expected to create Total Credit Reserves of approximately 32 million Offsets over the life of the agreements. The Group is currently awaiting various regulatory approvals with regard to verification of the Offsets and their certification as CERs. The Group's strategy is to expand rapidly its Offset production and resultant sales capacity by commencing the modification of AWMSs on farms where it has already entered into arrangements with farmers and by rolling out its turnkey AWMS modification methods both geographically and across additional livestock species beyond its current focus on swine through the entry into contracts with additional farms. More information about AgCert’s Greenhouse Gas Reduction projects can be found at http://www.agcert.com |