The board of AgCert, the emissions company, has reported that its profitability and risk profile have "significantly improved" after renegotiating some of its fixed contracts.

The company said its gross revenues would be boosted by up to €95 million over the next three years following a revision of existing contracts.

AgCert gives farms the technology to cut pollution and sells on the saved carbon emission reduction credits to companies that need them. The main contract renegotiated is believed to be with Dutch power utility Nuon.

In addition, AgCert said it expected to reach formal agreements early in 2007 on deals to raise €70 million in debt. A statement said: "The company's principal fixed contracts have been renegotiated, releasing significant capacity for sale at full market prices, adding an estimated €53-€95 million to company gross revenues while at the same time improving the risk profile by substantially reducing the company's potential exposure to mark-to-market damages."

The company said funding was proceeding apace. "Negotiations to cover further funding in 2007 are progressing well with executed term sheets in place for €70 million in new loans. Completion, subject to final agreement, expected early in 2007."

AgCert management said the business was on track to be cash-flow positive at the end of 2007.

The company continues to expand the number of sites under development. Its statement said: "Based on our accumulated experience, we shifted our attention to more stringent site selection criteria, a strengthening of our processes and controls, and improvements in design.

"New site development, together with the significant latent capacity for improved performance from existing sites, will continue to drive the company's production output towards reaching its goal of an additional 5 million tonnes of capacity in situ by the end of 2007," the statement added.

The carbon emission trading market continues to evolve rapidly, it said. The volume of credits brokered and traded in Europe was now considerably ahead of earlier market expectations. In 2005, 262 million tonnes were traded. In 2006, it grew to an estimated 795 million tonnes.