Company Overview
EcoloCap Solutions Inc. is a company committed to actively participate in the new Carbon Market by offering creative and pragmatic business solutions to help combat climate change, while creating value for its shareholders.
EcoloCap’s role in the generation of tradable carbon credits, known as Certified Emission Reduction (CER), issued from Kyoto's Clean Development Mechanisms (CDM) projects will provide an effective vehicle for developing countries to participate in the ongoing effort to reduce carbon emissions. The projects will not only reduce local air pollution, they will also create jobs, generate revenues and other significant market benefits for all the stakeholders.
EcoloCap’s competitive advantage in the Carbon Market is built on technological knowledge and a network of capable and influential organizations and individuals that was put together in various regions around the globe, more particularly in Eastern Asia where the CDM market is very active, a guarantee that there will be a continuous flow of projects and carbon credits – CERs – benefiting both stakeholders and partners.
Thanks to this developed network, EcoloCap has already formed strategic alliances and successfully secured several CO2 and other GreenHouse Gas emission reduction projects in Eastern Asia as part of its first growth plan.
Business Model
EcoloCap’s business model reflects the company’s vision and understanding of the new market under Kyoto. The model is flexible and perfectly aligned with the carbon project cycle, thus guaranteeing maximal returns not only at the end of the project cycle when the CER is certified and issued but also at various key check points in earlier stages of the process. This ensures faster cashing of the carbon commodity.
EcoloCap works in close partnership with stakeholders such as landowners, engineering firms, community groups, host countries, investors, markets, etc., and ensures that its human capital is available where it counts to lock forward value while, at the same time, reducing inherent risks. Its networking team present in host countries and where carbon projects are validated and CERs are issued facilitates the certification process and make sure that it is done in the most efficient and rapid manner. This team works closely with the expert team present on project sites in order to deliver maximum amounts of carbon credits possible from each project and hence maximize investor’s revenues.
EcoloCap assesses the commercial viability of each project and engages in project development yielding high carbon contents. The Company targets critically important economic areas where it can (1) maximize the quantities of its carbon credits created, (2) maximize the use of its resources in the most efficient way, (3) rapidly create synergies conducing to large economies of scale and (4) solidify its key competitive advantages:
The Valorisation of Methane Gas from landfills
Methane Gas (CH4) is 21 times more harmful to the environment than Carbon Dioxide (CO2). Unless the emissions from landfills, mines and other sources of methane are controlled, it is emitted to the atmosphere, thereby contributing to further global climate deterioration. Additional income can be generated with the potential for electricity generation or other uses for the methane gas.
Hydro Power Development
Important measures are being taken to continue improving energy efficiency and reduce carbon emissions. It is estimated that, in Asia alone, thousand small to medium size Hydro Power and Wind Power projects will be developed in the next few years towards this end.
Biomass Valorisation
Concerns over pollution, air quality and the availability of gasoline have placed fuels obtained from biomass as a key alternative solution to environmental and energy problems. The market for biofuels is rapidly growing and becoming more diversified as the economic advantages of supplanting fossil diesel and gasoline with biofuels gains more and more acceptance worldwide.
Industrial Complex Improvement
Since the most attractive investments that EcoloCap wants to offer to its shareholders gravitate around robust plant economics, it integrates its extensive knowledge of engineering and financing to offer large scale solutions capable of generating large volumes of energy through the intelligent exploitation of combined new sources.
Investment Highlights
Growing environmental concerns
Scientists estimate that global greenhouse gases must be reduced 30-40% by 2030 to make a significant difference in global warming. In terms of dollars, global investment to accomplish this task is projected at around $2 trillion. The carbon market grew in value to approximately $30 billion in 2006. A study released in May 2008 by Point Carbon, a European consultancy and analyst service in global power and carbon markets, estimates that the world carbon market could be worth $3.1 trillion by 2020. This estimate assumes that the United States adopts a cap and trade mechanism similar to the plan introduced in the Lieberman-Warner Climate Security Act and that the E.U. sets a 25% emissions reduction target. Given the Point Carbon’s scenario, 67% of the carbon market would be in the United States. This projection implies trading volume of 38 billion tons of carbon equivalent per year by 2020.
Carbon credit emissions trading mechanism
The Kyoto Protocol was adopted on December 11, 1997 and entered into force February 16, 2005. The major feature of the Kyoto Protocol is binding targets for 37 industrialized countries and the European Community for greenhouse gas (GHG) emissions reductions.
The penalty for non-compliance in the first phase, which ends in 2008, is €40 per ton of carbon dioxide equivalent. In the second phase, which runs from 2008 to 2012, the penalty rises to €100 per ton of CO2. The CER trading mechanism provides a rapid payoff for companies that implement greenhouse gas emissions reduction programs and a vehicle for avoiding €40 per ton penalties.
Business model capitalizing on Carbon Credits
EcoloCap is focusing on projects that create Carbon Credits (CERs) registered under the United Nations Kyoto Protocol Clean Development Mechanisms, which are then sold on the world market at prevailing prices. The Company generates CERs by offering its expertise and resources to Asian governments and enterprises for the reduction of greenhouse gases. The Company provides an integrated “turn-key” solution which includes U.N. certification, technology, engineering, management and capital.
A growing portfolio of carbon projects
The Company provides its expertise to developing economies like China, India and Vietnam as well as to countries in Africa and South America. At present, ECOS is developing 16 projects in China and Vietnam. Most of its contracts have a 17 year length. These contracts are expected to result in an equivalent reduction of 5.8 million tons of CO2. The Net Present Value of ECOS’ portfolio is estimated at $50 million, assuming a six-year period of CERs and prices of $22 per CER.
Meaningful revenues projected in 2009
ECOS purchases CERs at a contracted price from abatement projects that have already been implemented and re-sells them in the secondary market. The Company launched its new business in late 2007 and expects to begin generating meaningful revenues from its projects in 2009. We estimate ECOS will produce annualized revenues ranging from $12-14 million between 2009-2014, assuming $24 CER prices. Our estimates may prove conservative, given the Company’s objective to double its CER reserves over the next six to nine months and build a portfolio of five million CERs annually.
Seasoned management team
Dr. Tri Vu Truong, the Company’s CEO and President, has had a professional career that includes the realization of many major scientific and technical studies and environmental projects since 1970. Dr. Truong was responsible for the creation and operation of the Permits & Inspections Division of the Montreal Urban Community–Environment Department in 1977. As President of the Sodexen Environmental Engineering Group since 1981, Dr. Truong managed numerous major environmental impact projects, including comparative studies of the environmental impact of dust-palliatives; environmental decommissioning of a polystyrene production complex and a solid waste management study relating to the closure of the Miron landfill
Recent ECOS News:
October 23 -
EcoloCap Signs Exclusive Agreement with CantorCO2e, Leading Carbon Credits Broker
EcoloCap Solutions, Inc. (OTCBB: ECOS) ("EcoloCap") today announced that it has signed an exclusive Greenhouse Gas Offset Management Services and Representation agreement with CantorCO2e LLC and its affiliates ("CantorCO2e") to develop and market EcoloCap's growing portfolio of potential Certified Emission Reductions (CERs) as well as pre-Clean Development Mechanism (CDM) Verified Emission Reductions (VERs). This agreement significantly enhances EcoloCap's ability to access a wider range of CER and VER buyers and will permit EcoloCap to increase its rate of generation of additional CERs.
Dr. Tri Vu Truong, President and CEO of EcoloCap said "we see this as a major step forward by EcoloCap. We evaluated several alternatives in order to find the best way to market our CERs and VERs, and to achieve the best prices for our expanding CER and VER portfolio. We feel that CantorCO2e will give us the best results and we look forward to working closely with them to build increased value for our shareholders."
EcoloCap is currently focusing its marketing efforts on China and Vietnam and a range of Clean Development Mechanism (CDM) projects have already been secured which represent an annual volume of over 1,000,000 CERs with most CER contracts being multiple-year. Current prices for CERs on the World Market can range up to 19 Euros (approx. US$25.50).
Corinne Boone, Managing Director, CantorCO2e said "we are looking forward to working with EcoloCap to develop its portfolio of potential CERs and VERs and market them to our global client base. The diversity of the project portfolio and the potential for growth could represent a significant addition to CER and VER markets."
Dr. Truong added "our agreement with CantorCO2e enables EcoloCap to immediately increase our marketing efforts to secure more CDM projects. As well, CantorCO2e's experience and expertise will enable us to more efficiently achieve accreditation of these projects so that the CERs and VERs can be sold more quickly."
EcoloCap's objective is to double its total CER reserves over the next six to nine months, with an initial target of accumulating a portfolio of 5 million CERs annually.
EcoloCap Solutions Inc.
740 St-Maurice Street, Suite 102
Montréal, QC
Canada, H3C 1L5
(514) 876-3907
http://www.ecolocap.com/
