Working with Buyers to ensure High Quality carbon projects : Working with Buyers to ensure High Quality carbon projects         Suzanne Chew TFS London Jasmine Haneef TFS New York


TFS – COMPANY HISTORY: TFS – COMPANY HISTORY Founded in 1985, Tradition Financial Services (TFS) is a market leader in the brokerage of energy, finance and emissions, including: Emissions: CER, VER, ERU, EUA, REC, NGAC, NOX, SOX Equities and Currency Derivatives, Freight, Property, Pulp & Paper, and Energy, including Coal, Power, Natural Gas, Crude Oil, Weather Derivatives TFS is a subsidiary of CFT, one of the world's three largest brokers CFT has a presence in 21 countries worldwide and over 2,200 employees, with 2006 Revenue = EUR €687.4 Million Listed on the Swiss Stock Exchange (CFT) since 1973, on the Paris Stock Exchange since 1988, and on the third compartment of the Frankfurt Stock Exchange since 1999.


WHAT IS THE ROLE OF TFS?: WHAT IS THE ROLE OF TFS? TFS develops long-term relationships with project owners and consultants to: Develop projects via TFS’ network of experts in CDM consultancy, technology and methodology Maximise value of the carbon credits by sourcing high quality projects Negotiate fair ERPA (Emissions Reduction Purchase Agreement)


TFS CDM PORTFOLIO: TFS CDM PORTFOLIO TFS’ portfolio of CDM projects includes: Wind farms usually 50MW in scale Biomass co-generation using different feedstocks Small-scale hydropower <20MW HFC and N2O industrial chemicals Coal mine methane Animal waste management (pig farm) Methane flaring and energy generation from Landfills Waste heat to power for steel, cement works Energy efficiency Examples of recent projects transacted: First Gold Standard Wind Project in China First CDM project in Singapore Vietnam Hydropower projects Biomass Cogeneration in India and Malaysia


OUR AWARDS: OUR AWARDS In 2007 TFS was ranked 1st in Europe CERs Brokerage by Energy Risk. Energy Business Awards: Best Broker in emissions trading awards in 2007:


HOW TFS WORKS WITH BUYERS: HOW TFS WORKS WITH BUYERS Wide access to a range of projects tailored to your requirements Broker projects at all stages including: Projects at PIN stage, some requiring financing for CDM development costs Projects that require investment financing Advanced projects with upfront payment Pure off-take Buyer (pay on delivery) Regional presence with local knowledge Frequent trips to originate projects in India, China and Southeast Asia TFS recently opened a Beijing office, and has local representatives in Manila and Australia Strong relationship with Project owners and consultants Facilitates successful negotiation through to ERPA stage TFS conducts site visits and meets directly with project owners and developers Preliminary risk assessment via site visits and evaluation of documentation e.g. EIA, due diligence documentation


WINDPOWER PROJECTS IN CHINA: WINDPOWER PROJECTS IN CHINA First Gold Standard Windpower project Other Windpower projects 45MW Windfarm in Fujian Province, China 450,000 CERs until 2012 Contracted at PIN stage, project now successfully registered in Jan 2008 Project owner is one of China’s top 5 power producers, China Datang Corporation 4 x ~50MW Windfarm in northeast China >2M CERs until 2012 Contracted at PIN stage, with financial assistance for CDM costs Project owner is a subsidiary of one of the leading energy producers in China, GuoDian Power


BUNDLE OF RENEWABLE ENERGY PROJECTS, INDIA: BUNDLE OF RENEWABLE ENERGY PROJECTS, INDIA Project Owner Large India company, part of a Group, specialises in Renewable Energy development About the projects 6 projects in Windpower and Hydropower Advanced stages of CDM project cycle: Validation/Registration Half a million CERs until 2012 Price structure Offered guaranteed CERs Looking for a fixed price for majority of CERs, floating price for remainder


HYDROPOWER PROJECTS IN VIETNAM: HYDROPOWER PROJECTS IN VIETNAM Bundle of Hydropower Series of 5 HPP with the same owner, a manufacturing company in Central Vietnam Range from 4MW to 50MW Half a millions CERs until 2012 Fixed price with CDM financial assistance Large Hydro Run-of-river project EIA translated into English Strong project owner with operational excellence No village displacement 15 MW HPP (2 x 7.5MW units) 136,000 CERs until 2012 Fixed price with CDM development costs Japanese buyer Small-scale Hydro


FIRST CDM PROJECT IN SINGAPORE: FIRST CDM PROJECT IN SINGAPORE CDM Consultancy active across Southeast Asia Singapore’s first CDM project signed in November 2007 Project owner is a local environmental services firm Forward CERs from a waste heat recovery project at a power plant used to dry agro-industrial waste Buyer was a large Japanese utility company TFS supports the growth of local consultancies which serve to build home-grown expertise to maximise value to local stakeholders


FURTHER DEALS IN SOUTH-EAST ASIA: FURTHER DEALS IN SOUTH-EAST ASIA Malaysia Co-composting of biomass Seller’s first CDM project Project managed by local CDM developer Straight offtake for a fixed price > 170, 000 CERs up to 2012 Vietnam 5 Small HPP – total installed capacity of 40.5MW Local CDM consultant CERs sold for fixed price and CDM development costs > 250, 000 CERs up to 2012 Examples of TFS transactions with Japanese Buyers:


DEVELOPMENT OF NEW METHODOLOGY IN CHINA CEMENT: DEVELOPMENT OF NEW METHODOLOGY IN CHINA CEMENT Project Owner Large conglomerate, wanted to explore new methodologies to match its activities in the cement sector TFS worked with this client through: Expertise in methodology development (expert to the Meth Panel) and CDM project development (local partners) Skill in Chinese negotiations to bring in scientific rigour (local University researchers) Strong co-operation from weekly discussions on project progress and several site visits Results Finalising new methodology which involves an aggregate additive into cement, which creates cement with increased strength via a production process with lower emissions. TFS understanding of existing methodologies ensured new methodology worked efficiently in incorporating existing elements Contract signed for 1 Million CERs, currently close to final contract for additional 3 Million CERs


VOLUNTARY MARKETS: VOLUNTARY MARKETS Overview Recent growth in market Preferred types and vintages – impact on price Increasing standardization – eg: VCS, VOS, VER+ Speculative, CSR or Pre-compliance market Types of VERs Domestic VERs Pre-CDM VERs Non-Kyoto VERs Small-scale VERs Forestry VERs


VERS – TFS CASE STUDIES: VERS – TFS CASE STUDIES Gold Standard VERs (GS) from a windpower project in New Zealand Voluntary Carbon Standard (VCS) VERs from a Bundle of Renewable Energy projects in China, including Windpower and Hydropower Voluntary Offset Standard (VOS) VERs from a Biomass cogeneration project in India VER+ standard VERs from the Waste Heat Recovery / Industrial Energy Efficiency VERs in India Environment Canada Standard VERs from a LFG project in Canada TFS has successfully brokered projects using a range of Voluntary standards in the market


Slide15: Thank You www.tfsgreen.com www.tfsbrokers.com Suzanne Chew Senior Emissions Broker Office: +44 20 7198 1600 Mobile:+44 7786 800 958 suzanne.chew@tfsbrokers.com Jasmine Haneef Senior Emissions Broker Office: +1 212 943 2883 Mobile: +1 646 525 7327 jhaneef@tfsenergy.com