26/02/2008 - 12:46

Patersons, former Alinta execs consider carbon sink venture

26/02/2008 - 12:46

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Patersons Capital Partners - a joint venture between former Alinta Ltd executives and stockbroking firm, Patersons Securities - has partnered with West Perth-based optical products provider, C@ Ltd, to examine the potential establishment of carbon sequest

Patersons, former Alinta execs consider carbon sink venture

Patersons Capital Partners - a joint venture between former Alinta Ltd executives and stockbroking firm, Patersons Securities - has partnered with West Perth-based optical products provider, C@ Ltd, to examine the potential establishment of carbon sequestration and bioenergy businesses.

C@ director Andrew Harrison said PCP's role would include establishing relationships with major carbon emitters around the world, developing interfaces with capital markets and creating the strategic framework to exploit opportunities in this emerging sector.

C@ initiated work on the project in line with its previously stated intention to investigate new business opportunities.

"We will focus specifically on opportunities to enter the carbon sequestration and bioenergy industries," Mr Harrison said.

"Previous business models in this sector have gone part way towards contributing to the reversal of climate change but we are investigating new methods that are more likely to produce carbon sinks that generate commercial returns."

Mr Harrison said the C@ board considered PCP to be the ideal development partner due to its extensive experience in the energy, resources and capital markets both in Australia and abroad.

He said C@'s review team already had world-class environmental, climate change and agribusiness expertise.

The team currently includes PCP executive directors Rod Evans, who was group manager acquisitions and strategy with Alinta Ltd from 2003 - 2007, and David de Loub, a group treasurer at Alinta Ltd from 2004 - 2007

Prior to joining Alinta, Mr Evans was assistant director general of the Western Australian State Government Department of Industry and Resources, and Mr de Loub was assistant treasurer at Alcoa Inc based in New York.

The men are joined by other PCP executive directors Shaun Duffy, a former group manager investor relations with Alinta Limited from 2004 - 2007, and C@ non-executive director Gordon Thompson.

Mr Duffy previously led investor relations for ERG Ltd and Orbital Engine Corporation Ltd and was CFO of ASG Ltd.

Mr Thompson is an engineering and environmental consultant and a non-executive director of ASX-listed Dyesol Ltd, currently commercialising a third generation photovoltaic technology called Dye Solar Cell.

A former managing director of the UN's International Centre for the Application of Solar Energy (CASE), Mr Thompson is also the inaugural chairman of the Sustainable Energy Industry Association of Australia, which merged to create the Business Council for Sustainable Energy.

Mr Harrison said the due diligence would review the potential to develop large scale, long-term plantations to create carbon sinks that sequestered carbon from the atmosphere and produced carbon credits.

"Such sink plantations produce several different outputs, some of which can be used to generate renewable energy," he said.

"The use of renewable energy has the potential to reduce reliance on fossil fuels and carbon credits accrue for production of this type of energy.

"Carbon sequestration involves the absorption of carbon dioxide from the atmosphere which is converted into tree biomass including trunks, roots, and foliage.

"The amount of carbon sequestered can be measured under strict national and international guidelines to calculate a carbon credit value.

"Carbon credits are already traded under various Australian and international carbon trading schemes or are used to directly offset emissions.

"The carbon credit trading regime is expected to mature further over coming years and C@ directors hope to position the company to capitalise on this trend.

"C@'s directors also believe that the serious global concern about climate change, the growing recognition of the economic cost of carbon emissions, and the scientific community's agreement about the vital role of new carbon sinks, make this business opportunity timely and compelling.

"We believe there is an opportunity to advance the concept of carbon sinks to make them commercially viable and valuable in addition to being a part of the climate change solution. As far as we can see, this is new thinking in the sector."

 

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