Large Transaction Highlights Company's Growing Global Reach and Traction
in the Primary Carbon Market
WORCESTER, MA, Oct. 27 /CNW/ - World Energy Solutions, Inc. (NASDAQ: XWES; TSX: XWE), an operator of online exchanges for energy and green commodities, today announced it has successfully brokered a purchase agreement for over 1.4 million certified emissions reductions (CERs) on the World Green Exchange(R). The deal, significant in both volume and revenue, was conducted on behalf of B-road International Investment, a Chinese project developer. The buyer, COzero, is an Australian marketer of green power and carbon offsets.
World Energy expects to recognize revenue from the transaction annually over a ten year period, beginning in 2010, as credits are generated, verified, registered and delivered. The transaction centers on CERs from three early-stage projects across China, including bio-gas and fuel switching. Terms of the deal remain confidential but involve a tiered investment by the buyer for both pre- and post-2012 CERs.
"We initially tried to bring these projects to market on our own, but the World Green Exchange offered us a much more efficient and transparent process to attract high quality investors to our projects," said Helena Deng, North American Representative for B-road International, an international company dedicated to developing Clean Development Mechanism (CDM) projects in China.
Company CEO, Kuihuan Deng, added: "We are very impressed with World Energy's ability to connect primary carbon projects with quality buyers in the Kyoto community and are glad to find in COzero an investor who understands our project needs and has experience working with Chinese developers."
"From a buyer's perspective, the World Green Exchange offered exactly what we needed: access to high-quality project credits backed by detailed information to help us determine this was the right investment for us," said Nicholas Armstrong, Director of B2B at COzero. "In short, World Energy streamlined the buying process, and we are excited to be participating in this opportunity with B-road International."
The World Green Exchange(R) is an open, information-rich marketplace that enables buyers and sellers of carbon commodities to transact with confidence. Working with leading standards, registries, consultants, project developers and banks, the World Green Exchange streamlines the procurement process while delivering transparency, quality, choice and value. Over 100 million green commodities, spanning CERs, VERs, RECs, Alberta offsets and RGGI allowances, have been transacted on the World Green Exchange, making it one of the largest primary carbon marketplaces in the world.
"Buyers and suppliers in the global carbon market share common needs, the most critical of which is information - about projects, about contracting, and, most of all, about each other," said Kenneth Ivanic, Vice President, Environmental Markets, at World Energy. "This transaction highlights the growing global appeal of the World Green Exchange and how it brings together buyers and suppliers, helping them transact more efficiently."
About World Energy Solutions, Inc.
World Energy (NASDAQ: XWES; TSX: XWE) operates online exchanges for energy and green commodities. For buyers and sellers of electricity, natural gas, capacity, and green- energy assets who are impacted by today's volatile markets, World Energy's proven approach has transformed the normally complex procurement process into a powerful, streamlined vehicle for cost savings. In addition to enabling customers to seek competitive pricing on traditional energy commodities, World Energy is taking a leadership position in the emerging environmental-commodities markets. Its award-winning World Green Exchange(R) supports the ground-breaking Regional Greenhouse Gas Initiative's (RGGI) cap and trade program for CO2 emissions. 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.
For further information: For further information: Investor Relations, Phil Adams, World Energy Solutions, Inc., (508) 459-8100, firstname.lastname@example.org or Craig Armitage, The Equicom Group, (416) 815-0700 x278, email@example.com; Media Relations, Dan Mees, World Energy Solutions, Inc., (508) 459-8156, firstname.lastname@example.org