XL TechGroup company AgCert International enters agreement with EDF Trading
AgCert Will Provide Emission Credits to EDF Trading
04 April 2005
XL TechGroup, the systematic architect and builder of an ongoing stream of high value new companies, today announces that EDF Trading (EDFT), one of the leading European traders of electricity, natural gas, coal and other commodities , has signed an agreement with an XL TechGroup company, AgCert International Ltd. This agreement will enable EDF Trading to purchase Certified Emission Reductions (CERs) from AgCert International, a worldwide leader in greenhouse gas emission reductions (ERs) . The CERs will be delivered over a two year period that begins in 2006.
EDFT actively manages a large portfolio of direct and indirect CO2 positions stemming from the optimisation of the EDF-Group thermal generation plants, assistance to EDF traditional commodity customers to comply with emission reduction requirements as well as the CO2 exposure embedded in EDFT proprietary power trading activity.
"This transaction will further consolidate EDFT's position as a major participant in the emerging CO2 trading market," said Francois Joubert, General Manager EDF Trading. "This purchase is an excellent fit with our current portfolio. AgCert's quality business, together with the professionalism of its team, provides us with a solid and convincing value proposal in a market where credit worthiness is paramount."
"We continue to see the value that the market places in combining the traditional energy commodities with emissions reductions", said Al Tank, Managing Director and CEO of AgCert International Limited. "We are proud that EDF recognises AgCert as such a strong partner in the CER market ."
AgCert's core business is in the manufacturing of greenhouse gas emission reductions from farm systems worldwide. AgCert works with farms to modify animal waste management practices in order to reduce their greenhouse gas emissions. AgCert is currently working with farms in Brazil and Mexico to supply EDFT. AgCert is qualifying its emission reductions as CERs under the Kyoto Protocol for trading in the EU Emission Trading Scheme (ETS) and in other countries which are participants in the Kyoto Protocol.
The European Union has passed legislation mandating reductions in greenhouse gas emissions. Under the EU ETS, industrial companies producing emissions in excess of their allocated allowances will need to purchase emissions offsets or face fines of €40 per excess tonne of C02 committed, rising to €100 per ton on 1 January 2008. The purchase of CERs provides a cost efficient way for such companies to comply with their emission obligations.
Dr John Scott, CEO of XL TechGroup, said, "We at XL TechGroup are systematic in our approach to identifying winning markets. One such market is in reducing greenhouse gas emissions where AgCert, an XL TechGroup company, leads the way. This deal with EDF Trading further pinpoints AgCert as a leader in its field"”
About XL TechGroup
XL TechGroup identifies unmet market needs in the life science and technology sectors and then systematically creates and develops successful disruptive technology businesses to exploit these needs. The Company has developed a unique proven method to rapidly bring companies from inception to liquidity, matching unexploited IP from a group of technology partners to the identified unmet market need. XL TechGroup deploys its own predictive algorithm to ensure the market will rapidly adopt the identified solution and than moves to scale the company specifically created to exploit the opportunity.
The XL TechGroup management team has created substantial value for shareholders over the last twelve years, having successfully exited six technology businesses at an annual IRR of 148%. The team has turned $157 million of investment into more than $1.1 billion of liquid asset value. The six exited businesses have a combined market cap of $3 billion and combined annual revenues of $1.25 billion.
XL TechGroup has a significant pipeline of new opportunities, including the first two in the next generation of businesses:
-
AgCert was created by XL TechGroup in May 2002 and is the world's largest supplier of emission reduction credits with business in Europe, Asia, North America and South America.
TyraTech (formerly TyraTech) which was created by XL TechGroup in July 2004 is developing a new class of non-toxic pesticides using cloned insect chemoreceptors, based on approved, safe, natural oils. After being established in 2004, its development is progressing rapidly and TyraTech, which is 66.7% owned by XL TechGroup, is expected to be profitable by the end of 2005. www.tyratech.com
There are several other opportunities already at an advanced stage in the XL TechGroup business creation pipeline.
About EDF Trading
EDF-T was founded in 2000 and is now firmly established as a leading energy market participant with a turnover in excess of 15 billion. EDFT is based in London and is 100% owned subsidiary of EDF. EDF-T is active trading power, gas, coal, oil and renewable throughout Europe and has opened in 2004 an office in Sydney to cover its Asian coal business.
AgCert International Ltd.
AgCert, based in Dublin, is one of the global leaders in greenhouse gas emission reductions (ERs), and has operations in Canada, Europe, the United States and Latin America. AgCert is capable of generating millions of tonnes of CO 2 equivalent (CO 2e) reductions annually by consistently applying a unique ER production process based on government-backed, scientific research and development. Through the consistent application of this science across nearly all geographies, the company can produce CERs, ERUs and VERs. Today, AgCert Canada is one of only twenty-three (23) companies or entities recognised by the CDM Executive Board with an approved methodology to produce CERs (AM0016). This methodology, initially focusing on transforming animal waste management systems within concentrated feeding operations, ensures AgCert's capabilities to produce emission reductions that comply with the Kyoto Accords, the Marrakech Accord's Joint Implementation and Clean Development Mechanism projects, the EU Emissions Trading Scheme and Canada's pending Domestic Trading System. For further information please visit www.agcert.com.
If you would like further information, please contact:
If you have any media enquiries, please contact:
EDF Trading
Maitland (for AgCert)
Disclaimer for US Site Visitors
This web site contains investor-related information that is directed only to non-US persons. The investor-related and other information provided on this web site is for use only by non-U.S persons, and is not an offer to buy or sell, or a solicitation of an offer to buy or sell, any XL TechGroup securities. Moreover, we may not offer or sell XL TechGroup securities in the U.S. absent registration or an exemption from registration. If you are a U.S. person, or a person acquiring XL TechGroup ordinary shares for the account or benefit of any U.S. person, you agree and acknowledge that XL TechGroup's ordinary shares have not been registered under the U.S. Securities Act of 1933, as amended, and any offer or sale of XL TechGroup securities by XL TechGroup or its affiliates may be made solely pursuant to an exemption from the U.S. Securities Act of 1933, as amended.