Low carbon investment company goes public

A UK company which will invest in low carbon products and technologies has been floated on the London Stock Exchange, raising £44.5 million from the sale of its shares.

Low Carbon Accelerator Ltd was admitted to trading on the AIM market this week, with those buying the shares including local authorities as well as private asset managers.

The company will initially invest principally in companies based in the UK, Scandinavia, Germany and California which provide low carbon products and services across a number of sectors.

It will be looking for companies involved in sustainable building materials, clean air and water technologies, biofuels and other low-carbon fuels, energy efficiency and renewables.

Mark Shorrock, CEO of the company, said: “We are delighted with the positive response that Low Carbon Accelerator has received from a broad range of investors. The demand for low carbon products and services worldwide is growing rapidly and our ability to identify high growth companies in the low carbon sector has proved attractive to investors.

“We are confident that we can deliver on our business plan and help accelerate the development of the low carbon economy, so as to decelerate climate change.”

By far the largest single investment in the newly-floated company was ABN AMRO Bank NV which bought £20 million worth of shares.

Richard Burrett, managing director responsible for sustainable development at ABN AMRO, said: “Climate change is an economic challenge as well as an environmental one, and avoiding the more dangerous impacts will require huge investment in areas such as low carbon technology. Low Carbon Accelerator is an important step in this direction and one that we wholeheartedly support.”

The company will target trading businesses with patentable technologies and products with a clear commercial application and the opportunity to gain a large market share of a new or expanding market. It will focus on businesses with experienced management teams who have developed commercially viable products providing easily adoptable solutions which deliver immediate reductions in carbon dioxide emissions.

Low Carbon Accelerator says it will seek to invest as sole or lead investor in early and growth stage companies with attractive products, looking to buy a significant minority of their shares around the 25% mark.

Sam Bond

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