SOURCE: HTC Purenergy Inc

December 17, 2009 14:38 ET

HTC Purenergy Inc. Announces the Acquisition of Front Street Capital's "Carbon Capital Management Inc."

REGINA, SK--(Marketwire - December 17, 2009) - HTC Purenergy Inc. ("HTC") (TSX-V: HTC) is pleased to announce today it will acquire a majority interest in Carbon Capital Management Inc. ("CCM") -- a Canadian-based and privately held company.

CCM, wholly owned by Front Street Capital 2004, created the leading carbon offset origination firm in Canada over the past two years. CCM will continue leveraging its first mover advantage and grow its leadership position by focusing on the origination, sales and trading of a physical supply of carbon offsets. CCM will utilize carbon finance and other carbon transaction strategies to build a diversified portfolio of carbon assets that will qualify under provincial, federal and international trading regimes.

"The work that we completed at Front Street with a very qualified and dedicated carbon team over the past two years has laid the foundation to build CCM into the dominant force in carbon origination, finance and trading in Canada," says Dave Rogers, President and CEO of CCM. "Our objectives will stay constant and with our new partners, we will continue building CCM into the leader in a new and exciting market."

CCM will leverage HTC's wholly owned subsidiary Carbon Rx Inc., which will facilitate the development of carbon offset credits in the energy industry through participation in large-scale Carbon Capture and Storage ("CCS") and methane destruction projects, expected to be a significant supplier of offsets in all future compliance markets.

"Dave Rogers is a recognized leader in Carbon Markets and a very skilled and growth driven President and CEO. The combination of CCM's current market leadership position in the upcoming Canadian compliance market coupled with HTC's inherent carbon credit supply position will further advance CCM's position as the top carbon origination and trading company in Canada," says Lionel Kambeitz, Chairman and CEO of HTC Purenergy Inc.

CCM is focused on creating a leading and fully integrated carbon management company initially focused on the Provincial and Federal markets in the short-term with a view to expanding the portfolio as other compliance markets are announced. CCM will achieve this goal by integrating HTC's CCS licensing and related services with Carbon Rx Inc.'s technology and services, and by continuing to build CCM's carbon portfolio

"With HTC being a significant supplier of CCS technology, we are confident that they will be a major source of offsets in the future," says Gary Selke, CEO of Front Street Capital 2004. "This in turn will complement CCM's core strategy, and will allow both companies to realize both their short- and long-term goals and to be at the forefront of the Canadian compliance-based carbon market."

Under the terms of the transaction, HTC will acquire 90% of the issued and outstanding shares of CCM and Front Street has retained the remaining 10%. In addition to providing HTC and Carbon Rx Inc. owned products, services and technology rights including trademarks, trade-secrets and processes to CCM, HTC will, as part of the consideration, issue 100,000 units ("Unit") to Front Street Capital 2004. Each Unit comprises one common share, and one common share purchase warrant, entitling the holder to purchase one common share at a price of $3.00 for a period of five years, expiring December 15, 2014. At close of market on November 16, 2009, HTC's shares were trading at $1.90 per common share.

This transaction has been approved by the board of directors of HTC and has received conditional approval from the TSX Venture Exchange Inc.

About Compliance-based Carbon Market

A compliance-based carbon market, through cap-and-trade legislation, creates compliance targets for large final emitters to reduce Greenhouse Gases (GHG) emissions from their operations, or purchase offsets from verified carbon reduction projects, which creates the supply of carbon offsets in the market. Companies that have annual compliance targets to meet will purchase these offsets to help them achieve their obligations. CCM, through their carbon offset portfolio, will purchase offsets from verified carbon reduction projects and will sell them to companies under compliance which demand offsets to help them attain their emission targets.

About HTC

HTC is a publicly traded (TSX-V: HTC) energy technology company that is commercializing Carbon Capture and Carbon Management Technologies for power generation, fuel processing and other industrial carbon emitter facilities. HTC has strategically aligned with and has licensed its CO2 capture technologies to world leading energy infrastructure providers Doosan Babcock Energy/Doosan Heavy Industries ("Doosan"), since September 2008. Doosan designs, supplies and constructs advanced steam generation technology for the power industry, developing some of the cleanest, most efficient power generation plants in the world. Doosan is also a leading energy services company operating in the thermal power, nuclear, oil & gas and petrochemical industries. Doosan owns 15% of HTC and holds a seat on HTC's board of directors.


HTC Purenergy corporate developments can be followed on and is traded under the symbol HTC.

Contact Information

  • For more information, please contact:
    David Rogers
    Carbon Capital Management
    Telephone: (416) 993-6078