Econergy International, which has offices in Boulder, Colorado, and Washington DC, USA, Sao Paulo, Brazil, and Monterrey, Mexico, has under development 40 clean energy projects throughout Latin America that may also sell carbon credits under the Clean Development Mechanism. In addition to the carbon trades it brokers, it also takes equity stakes in projects which yield carbon credits.

In February 2006, Econergy International PLC floated on the Alternative
Investment Market of the London Stock Exchange. The Company's mnemonic is ECG.

Econergy Homepage

Major Holders
Ospraie Management - 9,680,927 (11.13%)
Scottish Widows - 8,418,300 (9.55%)
MPC Investors 6,608,268 (7.60%)
Thomas H. Stoner Jr 5,538,039 (6.37%)
Deutsche Bank AG - 4,419,700 (5.08%)
Halbis Capital Management - 4,295,266 (4.94%)
Moore Capital Management - 4,000,000 (4.60%)
Frederick Renner 2,766,425 (3.17%)

Advisor
Piper Jaffray Ltd
Dresdner Kleinwort Target Price 155p (15 Jan 08)

Projects by Location

Bolivia
50 per cent interest acquired for $20 million in February 2007 in Empresa Eltrica Corani S.A., a leading Bolivian hydroelectric operation that is expected to continue to generate 391,320 net MWh per year, representing roughly 20 per cent of Bolivias total electricity capacity. The dividend from the plant will be declared in April 2008.

Brazil
Pedra do Sal: In August 2007 the Group acquired the rights, subject to government approval, to own 100 per cent of this wind project expected to generate 61,000 gross MWh per year. Econergy International also signed an agreement with Wobben Windpower, the Brazilian subsidiary of Enercon GmbH, to purchase, install and maintain 20 wind turbines for a total capacity of 18 MW. Site work is expected to commence prior to year end, and the plant expects to be in operation by 1 January 2009. The output has been sold on a 20-year term at a starting tariff of approximately $114 per MWh.
Areia Branca: A 78.8 per cent. owned hydroelectric project, with a total capacity of 19.8 MW, is expected to generate 97,000 gross MWh per year with Econergy International owning an effective net 76,000 MWh. The plant is expected to be in operations by Q4 2008.
Beberibe: A 90 per cent owned wind project expected to generate 90,000 gross MWh per year with Econergy International owning a net 80,000 MWh. In April 2007 Econergy International signed an equipment purchase and installation agreement with Wobben Windpower to purchase, install and maintain 32 wind turbines at the site for a total capacity of 25.6 MW. The plant is expected to be in operation by the 2nd Quarter of 2008.
Pipoca Hydroelectric: Econergy International entered into an agreement to purchase 51 per cent of the 20 MW Pipoca hydroelectric project in the State of Minas Gerais in Brazil from its current owner. The remaining 49 per cent is owned by CEMIG, the state of Minas Gerais electric utility, which will also issue a guarantee on the 20-year PPA on behalf of its distributors. The total project cost is expected to be approximately $48 million. Sales of electricity are expected to average 104,000 gross MWh annually. In addition, the project should produce approximately 10,000 CERs annually. The agreements with CEMIG are expected to be finalized during the fourth quarter of 2007.

Costa Rica
Proyecto Eolico Guanacaste: A 100 per cent owned wind project expected to generate 112,000 net MWh per year. Econergy International and its partners signed an agreement with Enercon GmbH in August 2007 for the supply and maintenance service for 55 wind turbines for a total capacity of 49.5 MW. Site construction is expected to begin by December 2007. 25.2 MW expected to come online in Q1 2009 with the remaining 24.3 MW expected in the First quarter of 2010.

USA
Cambria: In September 2007 the Group signed an agreement to acquire for $2.7 million a 50 per cent interest in a coalmine methane project under construction in Pennsylvania that is expected to yield 700,000 carbon credits over the 14 year life of the project. The project will also provide pipeline quality gas to the regional natural gas pipeline system. The expected gas production is 300 million cubic feet per year to be sold on the New York Mercantile Exchange (NYMEX). The project should come online in the 1st Quarter of 2008.

Mexico
Econergy International has executed land use agreements for the 20 MW Loreto Bay Wind Farm project and the 20 MW Eica Santa Catarina wind project. Some remaining land agreements for Santa Catarina are still being negotiated. Econergy International expects to execute a turbine supply agreement for the turbines in the late 2007 as well as PPAs with the local municipalities. The Group will also enter into an EPC contract for project construction with an international construction company. The total project cost of the Santa Catarina project is expected to be approximately $48 million and is expected to generate approximately 42,000 gross MWh and 26,000 gross CERs annually. Eighteen per cent of the project is expected to be sold to the CleanTech Fund. The total project cost of the Loreto Bay project is expected to be approximately $56 million and should generate approximately 45,000 gross MWh and 20,000 gross CERs annually. Approximately 15 per cent of the project is expected to be sold to the CleanTech Fund.

Chile
Laja:Awaiting News

Econergy's Consulting areas of expertise
Carbon Emissions Management
GHG emissions inventories
Emissions management plans
Power Project Transaction Support
Market assessments
Financial structure development
Investment due diligence
Project development support
Sustainable Energy Infrastructure
Energy infrastructure master planning
Resource & technology assessments
Feasibility studies
Institutional Program Support
Fund design and structure
Program design, implementation and performance evaluations
Management Team

My Thoughts
By the end of 2008 ECG will own and operate over four considerable renewable energy projects, these will deliver substantial revenues and allow for further investment in new projects and a dividend. As we move into 2009 the larger of Econergy's projects will come online and contribute heavily to ECG's target 1.2 million Mwh under management in 2009.
The projects all qualify for CER's (Certified Emission Reductions) and ECG can trade these with polluting companies in Latin America at a hefty profit. ECG also brokers large deals in Carbon Credits across the world, getting paid well in the process.
It's management of the Clean Energy Fund, created by global banking corporations, allows for ECG to sell part ownership of some of its projects to the fund and also gain a reputation within the renewable energy sector.
The USA is opening up to renewable energy and ECG has recognised this potentially huge opportunity by researching a number of 'clean' projects both under construction and in operation within the US for potential investment.

Econergy is my pick for sustained long - term growth. It's in a growing market, which also happens to be ethically sound and very profitable. It's management are not afraid to adopt a long term cautious approach to running the business and this has helped ECG lay the groundwork for becoming a highly successful global enterprise. The current share price in no way reflects the long term potential of ECG, my personal price target is 200p within 2 years. 5 Aug 2007. The recent weakness presents a great buying opportunity, which is in my view evidenced by the substantial holdings of Man Group, HSBC and RBS. Their assets are forecast to be worth $1.2 Billion by 2011, giving a NAV at that time of 346p.

Expected News
Early 2008, News of a turbine order for the Mexican Wind projects Eolica Santa Catarina and Loreto Bay is expected to be released.
12 May 2008, Econergy's preliminary's.
4th quarter 2008, Areia Branca expected to enter commercial operations.
March 2008, turbine testing at Beberibe.
Q2 2008, Beberibe expected to enter commerical operations.
Early 2008, bids for the balance of Proyecto Eolico Guanacaste should be awarded.
Q1 2008, Cambria is expected to enter commercial operations.

Good gag by Trading emissions

'Gus Hochschild, director of research at Dawnday Day Corporate Broking, estimated the company's power projects to be worth 116 million if they come to fruition and said the current share price was "absurdly low".
FT Today.
Lets hope the board are being advised in the same way and hold out for a 90p plus offer. Ideally, IMO, they would sell say a 15% stake in the company from a new issue to one of the parties looking at the company to provide working capital through 2010 when the shares should be worth much more.

I am not completely opposed to a merger with Trading Emissions as I believe the businesses would combine well, Trading Emissions cash pile I believe acting as boost to the number of projects ECG can take on, but on much better terms than their first derisory offer.

Thats a better offer. Up 35%