World Energy and N.serve Conduct Breakthrough Global Certified Emissions Reduction Auction

World Energy Solutions, Inc., an operator of online exchanges for energy and green commodities, today announced N.serve Environmental Services GmbH sold 300,000 primary CERs to Electrabel GDF Suez via the World Green Exchange.

The auction was structured to provide bidders with transparency into project characteristics and help N.serve transact with confidence despite volatility in world carbon markets. N.serve and World Energy tailored the transaction process to address the risks buyers face purchasing primary CERs. CERs were sold from a basket of six registered Clean Development Mechanism (CDM) projects (vintages 2008 – 2012) and were offered across a range of annual target amounts and buffer structures to hedge against under-delivery.

All the projects are generating credits from the reduction of N(2)O in nitric acid plants. Nitric acid CDM projects are a success story of the Kyoto protocol, facilitating the transfer of innovative environmental technologies to emerging economies and generating a significant, predictable stream of credits with clear additionality. The CERs in this auction represent registered CDM projects in Israel, South Africa and South Korea. N.serve is the worldwide leading developer of N(2)O reduction with secondary catalyst technology in nitric acid plants and contributes in the fight against climate change by managing projects with a potential to reduce more than 30 million tonnes of CO(2) equivalent.

“Close cooperation between N.serve and World Energy brought a vigorous, intelligent process to this auction that ensured we would attain a market price for our primary CERs closely aligned with secondary CERs,” said Marten von Velsen-Zerweck, an N.serve founder and Managing Director. “In addition, getting buyers to solicit bids with pre-executed contracts provided us extra security while significantly streamlining the deal closing. This proved to be particularly beneficial given the difficult stage the market is currently in.”

“In order to meet its European Emission Trading Scheme (EU-ETS) compliance, Electrabel GDF Suez originates carbon credits from its own portfolio, or by negotiating on a bilateral basis with Project Owners/Project Developers or by taking opportunities coming from intermediaries,” said Charles Hertoghe, Head of Portfolio Management at Electrabel. “In this framework, World Energy not only brought an attractive set of projects to our attention, but also delivered a transparent deal process, enabling us to tailor-make the agreement before the auction date and then close the transaction in only two hours on the auction date.”

Added Phil Adams, President and COO, World Energy: “We appreciate N.serve validating our process and business model by choosing to do business with us. We believe our platform differentiates us from the competition and ideally suits the evolving needs of the carbon market, namely an increasing demand for transparency, choice and value. This event highlights the continuing momentum we are building in the green space both domestically – with the recent successful RGGI auction – and around the world.”