The Finnish utility company EPV Energy, based in Western Finland, announced today that it will invest up to a further EUR 20 million into the second “Kyoto Plus” Tranche of the NEFCO Carbon Fund (NeCF) in order to acquire emission reduction units for its shareholders.
EPV has already placed EUR 29 million in the NeCF, and is now the single largest participant in the fund.
EPV’s investment is earmarked to acquire carbon credits after the Kyoto Protocol’s first commitment period, which runs out at the end of 2012 in order to meet compliance needs in Phase III of the EU Emission Trading Scheme.
Ash Sharma, Vice President of NEFCO and Head of the Carbon Finance Unit stated that “We are pleased to continue our strong working relationship with EPV, a responsible company which is working to develop significant renewable energy resources in Finland.” The second Tranche has exceeded the initial target capitalisation of EUR 30 million, and now stands at up to EUR 58 million. NEFCO is in discussions with a one other potential investor, and intends to close the fund thereafter.
“We have been extremely pleased with NEFCO’s work in connection to our previous investments into the NEFCO Carbon Fund. In accordance with our company’s strategy we have decided to procure additional emission reductions by investing EUR 20 million into the NeCF, says Managing Director Rami Vuola from EPV Energy.
The NeCF has thus far participated in 14 emission reduction projects with signed ERPAs, all involving deployment of renewable energy, namely wind power and small hydro. The projects are located in China, Vietnam; Indonesia, Laos and Mexico.