News

April 20, 2007

Econergy International Generates Clean Energy And Earns Carbon Credits

By Rue Swabey

Carbon brokers acquire carbon credits at an early stage with the intention of selling them on at higher price. The upside potential is attractive but the risks are significant and the share prices of the carbon brokers are closely correlated to the carbon price. One company appears to have found the right risk-reward equation; US-based Econergy International stands to benefit from an increase in the carbon price but as the bulk of its revenues will come from the sale of clean energy it should have both earnings stability and visibility.

Econergy was founded as a consultancy in 1994 advising on the development of sustainable energy in Latin America. Over the years it has built up considerable experience in clean energy technologies. In 2006 it raised £60million and it is investing the proceeds in clean energy assets. Econergy’s CEO, Tom Stoner, describes the company as an independent power producer rather than a carbon broker. It invests in assets that generate clean energy and carbon credits (although the latter is not the...