Arlington, VA, June 1, 2006 — AES Corp. and AgCert International announced the formation of AES AgriVerde, a joint venture designed to deploy AgCert’s greenhouse gas emission reduction technology in selected countries in Asia, Europe and North Africa.
Under the terms of the relevant agreements, AES will maintain a majority interest in the joint venture and plans to invest approximately $325 million into the joint venture over the next five years. In addition, AES has invested over $50 million to acquire an approximate nine percent equity interest in AgCert.
By 2012, AES AgriVerde intends to create an annual production volume of 20 million tonnes of greenhouse gas emission reductions through the reduction of methane — a potent greenhouse gas — emissions created by agricultural and animal farm waste.
AES AgriVerde will utilize a technology process developed by AgCert to capture methane from agricultural and animal waste products. AES AgriVerde will install systems to capture this gas and either destroy it or use it to generate electricity or heat, reducing net greenhouse gas emissions from the manure management process by approximately 95 percent.
The application reduces emissions by preventing the animal sewage and other agricultural waste from being disposed in large open lagoons where it would otherwise decay, releasing large volumes of methane.
In April, AES announced the formation of its alternative energy group and plans to invest approximately $1 billion over the next three years in the sector. Since October 2005, the company has committed to approximately $100 million in investments which will generate over 17 million tonnes of emission reductions through 2012.
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