Emissions trader in $325m AES venture

AgCert, the Dublin-based company that sells greenhouse gas emission credits it derives from farm slurry, unveiled a $325m (£173m) joint venture with the US power giant AES Corporation yesterday.

Under the terms of the agreement, AES will invest about £170m into the venture, called AES AgriVerde, over the next five years.

The joint venture involvesbuilding an operation capable of producing 20 million tonnes of greenhouse gas credits by 2012, deploying AgCert's technology in selected countries in Asia, Europe and North America.

AgCert has a patented "biodigestion" process that captures and destroys methane produced by farm slurry. This earns the group carbon credits which it can then sell to large industrials struggling to meet their emissions reduction targets.

AES has also taken a 9 per cent stake in AgCert, by buying 15.2 million new shares at 184p, giving the company a £27m cash injection. AgCert stock closed 1.5p lower at 208.5p.