January 8 (Renewables Now) - UK's redT energy plc (LON:RED) said on Friday it has unloaded two legacy Camco business units in a move completing its shift to a pure-play energy storage company.
The company's strategy is to focus on the development and commercialisation of the redT energy storage business, its core activity since reorganising as redT energy plc in 2015. In line with that it has decided to discontinue the Camco Carbon business. Camco Carbon will, as a result, not take on any new carbon contracts from January 10. This business had small marginal net positive earnings before interest, tax, depreciation and amortisation (EBITDA) in both 2016 and the first half of 2017, redT said.
The company has also agreed to sell its 85% holding in its Camco Africa investment advisory business, Camco Africa Ltd (CAL). It pointed out that Africa remains a key market for its energy storage machines.
CAL has a contract until 2020 to manage the Renewable Energy Performance Platform (REPP), which is designed to support African renewable energy projects of below 25 MW. In 2016 and the first half of 2017 the business achieved EBITDA break-even, but is expected to have a negative cash impact on redT in future periods, according to the announcement.