World Bank / International Finance Corporation Proposes Strategic Collaboration With XL TechGroup's AgCert Business in Latin America
07 February 2005
XL TechGroup, which specialises in developing technology companies and bringing new technologies to market, today announces that the International Finance Corporation (IFC) has publicised its intent to collaborate with one of their portfolio companies, AgCert International Ltd (“AgCert”), a company with a unique process for creating agriculturally sourced greenhouse gas (GHG) emission credits, on several of their Latin American projects. This could result in the foundation for a strategic relationship between AgCert and the IFC as well a US$15 million equity investment and a subsequent syndicated debt transaction.
AgCert expects to establish approximately 1,600 bio-digester sites on livestock farms in Mexico, Brazil and other countries, primarily in the Latin American region, over the next few years. Implementation of methane capture and management systems using AgCert's specially developed processes should enable the annual creation of millions of tons of certified emission reductions credits (CERs) which can be sold to countries and companies, primarily in Western Europe and Japan, that are required to meet specific emission reductions under the Kyoto Protocol and the European Union Emissions Trading System (EU-ETS).
AgCert's operations are expected to provide sustainable benefits to the regions in which the projects are undertaken in terms of providing a cleaner environment, better water management, additional sources of renewable energy, organic fertilizer and new jobs.
In addition to the initial equity investment and subsequent syndicated debt transaction, this unique relationship is of strategic importance to AgCert and meets the development and sustainability goals of IFC.
Dr John Scott, CEO of XL Tech, said: "This proposed strategic collaboration not only validates the strength of the AgCert business model and their leadership position in the rapidly growing emission credits market, but also brings the strength of these organisations together in finding a scalable solution to reduce greenhouse gas emissions.”
Notes to editors:
About XL TechGroup
XLTechGroup, LLC (XLT:AIM), based in Melbourne, Florida, is a unique company creation and development business focused on identifying unmet market needs, matching dynamic new technology solutions, and building successful businesses that transform markets, primarily in the life sciences and technology sectors. Its most advanced businesses are AgCert International, LLC, a company involved in the creation of carbon emission credits from agriculture, and TyraTech, LLC, which is developing a new class of non-toxic pesticides made from safe, natural oils. Through the creation, development and scaling-up of a number of such businesses, XL TechGroup aims to generate multiple returns for its investors from a single investment. For more information, please visit our web sites: www.xltg.com or www.agcert.com
About AgCert
AgCert works with farms to modify manure management practices in order to reduce the emission of greenhouse gases, including methane and nitrous oxide, which are believed to be a major cause of global warming. AgCert's technologies enable it to quantify these GHG emission reductions and to represent these reductions in the form of GHG emission reductions or ‘offsets'. These offsets can be sold to industrial companies to meet their GHG emissions compliance requirements. www.agcert.com
About IFC
The International Finance Corporation (IFC) promotes sustainable private sector investment in developing countries as a way to reduce poverty and improve people's lives. IFC is a member of the World Bank Group and is based in Washington, DC. Established in 1956, IFC is the largest multilateral source of loan and equity financing for private sector projects in the developing world. It promotes sustainable private sector development primarily by:
- Financing private sector projects located in the developing world.
- Helping private companies in the developing world mobilize financing in international financial markets.
- Providing advice and technical assistance to businesses and governments.
For more information, please visit our web sites: www.xltg.com or www.TyraTech.com
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