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September 3, 2008
Transaction Advances Alberta’s Carbon Market, Benefits Local Farmers, and Underscores Superiority of Auction-based Approach for Price Discovery
September 3, 2008, Didsbury, Alberta and Worcester, MA – Emission Credits Corporation (ECC), an agricultural aggregator of sequestered carbon offsets produced exclusively from farmland in Alberta, today announced it sold more than 100,000 tonnes of carbon credits on August 20, 2008 using the World Green Exchange.
This deal marks the second large-scale carbon-offsets transaction for ECC this year and its first using an auction. While terms of the deal remain confidential, ECC acknowledged the World Energy online auction proved a superior mechanism for price discovery, risk mitigation and liquidity enhancement over its prior bi-lateral transactions. The auction yielded a better price per tonne for its more than 900 participating Alberta farmers, while also engaging – and educating – more potential buyers in the process.
The ECC auction follows another milestone for World Energy in the province: the first carbon-offsets auction ever conducted in North America – on behalf of Verdant Energy. With the landmark ECC and Verdant events, World Energy has established itself as a top independent player in the Alberta carbon market – with an estimated 10% of all offset transaction volume conducted to date.
“ECC’s sale of 107,037 tonnes of carbon offsets is good news on many fronts for many players,” said Robert Coulter, President and CEO of ECC. “First, proceeds of the auction provide a significant new revenue stream for Alberta’s hard-working farmers, validating agricultural best practices as a linchpin in the Alberta carbon market. Second, it offers Alberta’s largest emitters a more cost-effective way to help the environment and comply with climate regulations, one that delivers immediate shareholder value. And third, it signals the growing viability and attractiveness of a market-based approach to carbon reduction here in Alberta.
“To say World Energy played an important role in this event is an understatement. Currently, there is limited liquidity in the carbon-offsets market. World Energy’s ability to bring potential bidders to the table and manage an online auction event where participants can understand exactly what kind of credit is for sale, and at what price, was invaluable to making our event successful and delivering more dollars to our constituents. ECC is very happy with its decision to auction its credits and with choosing World Energy as its auction partner and provider.”
Added Phil Adams, President and COO of World Energy, “We are pleased to be making history with ECC and gratified to see World Energy emerge as both a front-runner and market maker in Alberta’s carbon credit market. In our work with ECC, we see yet another example of the power of our auction platform to bring greater liquidity and transparency to markets, creating market lift and needed confidence to transact.”
About Emission Credits Corporation
Emission Credits Corporation (www.eccorp.org) is a privately owned Corporation operating primarily in the Province of Alberta. It gathers and quantifies carbon offsets produced through agricultural activity on behalf of its farmer/suppliers through its copy-written aggregation program.
About World Energy
World Energy operates leading online exchanges for energy and environmental commodities. Our proven approach provides market intelligence, promotes liquidity, and creates price transparency for all market participants, enabling our customers to transact with confidence and to seek the best possible price. To date, the company has transacted more than 45 billion kWh of electricity, 1 billion kWh of green power and Renewable Energy Certificates (RECs) and over 100 billion Dth of natural gas. For more information, please visit 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.
SOURCE: World Energy Solutions, Inc.
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