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EDF Buys Chinese Carbon Developer Energy Systems International
2010-07-27 11:12:32.555 GMT
By Mathew Carr
July 27 (Bloomberg) -- Electricite de France SA, the
world's largest utility, bought China's Energy Systems
International Ltd. in a deal that provides access to a low-cost
source of emission-reduction credits.
The trading unit of Paris-based EDF, which didn't disclose
the purchase price, is buying a developer of offset credits that
can be used for compliance in the European Union's cap-and-trade
program, the world's biggest. Utilities are seeking to produce
credits from Asia before a forecast surge in prices later this
decade, according to analysts including Trevor Sikorski at the
investment bank of Barclays Plc.
"This is a significant transaction for EDF Trading, as it
will enable us to expand our presence in the carbon market as
well as provide a strong platform for further development in
China", John Rittenhouse, chief executive officer of EDF
Trading Ltd., said today in an e-mailed statement.
Energy Systems, with offices in Beijing, Shanghai and
Amsterdam, had 56 emission-reduction projects approved by China
as of May 20, with 30 registered by the United Nations-overseen
Clean Development Mechanism Executive Board, according to a
statement on its website.
The company's projects have 1.4 million metric tons of
credits issued, with 37.5 million tons expected through 2012,
according to the Bloomberg CDM database, which lists 51 projects
for Energy Systems.
"EDF Trading is very knowledgeable in the carbon market
and it has its own portfolio so it surely knows what it is
doing," Laurent Segalen, managing director, commodities
trading, at Nomura International Plc, said today by e-mail.
Energy Systems will be a lot more valuable for EDF should
countries introduce climate-protection laws that create demand
around the world for credits beyond 2012, Segalen said.
CER Prices
UN Certified Emission Reduction credits for December fell
1.5 percent to 11.40 euros ($14.82) a ton as of 11 a.m. in
London on the European Climate Exchange. They have risen 3.8
percent this year. Sikorski of Barclays Capital forecast last
month they will rise to 20 euros a ton as early as 2013.
London-based Barclays agreed in June to buy Tricorona,
another carbon developer, in a takeover valued at about 1.1
billion kronor ($150 million). JPMorgan Chase & Co. last year
bought carbon business EcoSecurities for about $200 million.
For Related News and Information:
Emission market news NI ENVMARKET <GO>
Today's top energy stories ETOP <GO>
European power-markets home page EPWR <GO>
--Editors: Mike Anderson, Stephen Cunningham.
To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or
m.carr@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
