Message #28 From:
NewsBot Date: January 16, 2007 05:30:00 AM
AES News GE, AES Plan Partnership To Lead US Market In Offsetting Greenhouse Gas Emissions
ARLINGTON, Va. & STAMFORD, Conn.--(BUSINESS WIRE)--In a breakthrough toward US leadership in carbon reduction, the AES
Corporation (NYSE: AES) and GE Energy Financial Services, a unit of
General Electric (NYSE: GE), announced today that they intend to create
a partnership to develop greenhouse gas emission reduction projects in
the United States.
The partnership would seek to create an annual production volume of 10
million tonnes (metric tons) of greenhouse gas offsets by 2010,
primarily through the reduction of emissions of methane –
a potent greenhouse gas with a warming potential 21 times greater than
carbon dioxide. Projects to capture and destroy methane emissions would
include agricultural waste, landfills, coal mines and wastewater
treatment. In addition to methane-based projects, the partnership may
also pursue development of offsets through energy efficiency projects
and electricity generation from renewable sources. The partnership would
sell offsets from these projects to commercial and industrial customers
seeking to reduce the environmental impact of their operations or to
provide climate-friendly products or services to their customers.
“AES is committed to helping address climate
change as part of our broader alternative energy strategy,”
said Paul Hanrahan, President and CEO of AES. “Our
partnership with GE will enhance the ability of the United States to
expand energy resources while mitigating the negative environmental
impacts of growth. We are pleased to team with GE because the
combination of our skills will allow us to lead the development of the
US market for carbon offsets.”
The partnership would invest in projects using equipment from a variety
of manufacturers, potentially including GE products certified by its
ecomagination program. GE Energy Financial Services and AES are taking
this step with an immediate focus on voluntary demand for greenhouse gas
reductions but with an eye toward possible future mandatory emissions
limits.
“This initiative will help GE Energy Financial
Services double its already sizeable $1.5 billion portfolio of
investments in renewable energy projects by the end of 2008, and will
contribute to GE’s ecomagination program,”
said Alex Urquhart, President and CEO of GE Energy Financial Services.
Through its ecomagination program, GE has committed to help its
customers meet their environmental challenges while reducing its own
greenhouse gas emissions. GE has pledged to more than double its
investment in the development of cleaner energy technologies, from $700
million to $1.5 billion by 2010, reduce its greenhouse gas emissions one
percent by 2012, reduce the intensity of its greenhouse gas emissions 30
percent by 2008, and improve the company’s
energy efficiency 30 percent by the end of 2012.
Kevin Walsh, Managing Director and leader of renewable energy at GE
Energy Financial Services, added: “Our
capital, sales channels and risk management - along with AES’s
expertise in project development - make for a powerful combination that
will lead the US carbon market.”
Last April, AES announced formation of its alternative energy group,
making a $1 billion commitment to investments in wind, LNG, and climate
change sectors. Last December, AES adjusted its guidance on investment
in this sector to potentially as much as $10 billion over the next 5-10
years. It has already announced a target to produce up to 40 million
tonnes of greenhouse gas emission offsets per year by 2012, through
development projects under the Clean Development Mechanism of the Kyoto
Protocol in Asia, Africa, Europe and Latin America.
"Carbon offsets play an important role in the fight against global
warming,” said William Luraschi, Executive
Vice President, Business Development and leader of AES’s
Alternative Energy business. "AES began investing in greenhouse gas
reduction projects in the late 1980's. With our 25 years of experience
in energy and a presence in virtually every region of the world, AES is
well positioned to play a leading role in this sector."
The AES/GE partnership would establish strict standards for the
creation, certification and registration of US greenhouse gas emissions
credits. It plans to have internationally accredited and independent
environmental organizations assure that each carbon offset meets the
highest scientific and technical standards.
About GE Energy Financial Services
GE Energy Financial Services’ 300 experts
invest globally with a long-term view, across the capital spectrum and
the energy and water industries, to help their customers and GE grow.
With $13 billion in assets, GE Energy Financial Services, based in
Stamford, Connecticut, invests more than $5 billion annually in two of
the world’s most capital-intensive
industries, energy and water. In renewable energy, GE Energy Financial
Services has developed a strong record investing in wind, solar,
biomass, hydro and geothermal power, and is growing its portfolio of
$1.5 billion in renewable energy assets. More information: www.geenergyfinancialservices.com.
About GE
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media
and financial services company focused on solving some of the world's
toughest problems. With products and services ranging from aircraft
engines, power generation, water processing and security technology to
medical imaging, business and consumer financing, media content and
advanced materials, GE serves customers in more than 100 countries and
employs more than 300,000 people worldwide. For more information, visit www.ge.com.
AES is one of the world's largest global power companies, with 2005
revenues of $11 billion. With operations in 26 countries on five
continents, AES's generation and distribution facilities have the
capacity to serve 100 million people worldwide. Our 14 regulated
utilities amassed 2005 annual sales of over 82,000 GWh and our 121
generation facilities have the capacity to generate approximately 44,000
megawatts. Our global workforce of 30,000 people is committed to
operational excellence and meeting the world's growing power needs. To
learn more about AES, please visit www.aes.com
or contact AES media relations at media@aes.com.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning
of the Securities Act of 1933 and of the Securities Exchange Act of
1934. Such forward-looking statements include, but are not limited to,
those related to future earnings, growth and financial and operating
performance. Forward-looking statements are not intended to be a
guarantee of future results, but instead constitute AES's current
expectations based on reasonable assumptions. Forecasted financial
information is based on certain material assumptions. These assumptions
include, but are not limited to, continued normal levels of operating
performance and electricity demand at our distribution companies and
operational performance at our contract generation businesses consistent
with historical levels, as well as achievements of planned productivity
improvements and incremental growth investments at normalized investment
levels and rates of return consistent with prior experience. Actual
results could differ materially from those projected in our
forward-looking statements due to risks, uncertainties and other
factors. Important factors that could affect actual results are
discussed in AES's filings with the Securities and Exchange Commission,
including, but not limited to, the risks discussed under Item 1A "Risk
Factors" in AES's 2005 Annual Report on Form 10-K. Investors and other
interested parties are encouraged to read AES's filings to learn more
about the risk factors associated with AES's business. AES undertakes no
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
