TORONTO, ON, November 3, 2022, Carbon Streaming Corporation (NEO: NETZ) (OTCQB: OFSTF) (FSE: M2Q) (“Carbon Streaming” or the “Company”) is pleased to announce that it has entered into a carbon credit streaming agreement and associated royalty agreement (collectively, “Enfield Biochar Stream” or the “Carbon Stream”)with Standard Biocarbon Corporation (“Standard Biocarbon”) to support the construction of a biochar pyrolysis pilot facility in Enfield, Maine, USA (the “Project”).
- The Project will convert waste biomass into biochar, preventing the release of approximately 90,000 tonnes of CO2 equivalent (“tCO2e”) emissions and generate an equivalent number of CO2 removal certificates (“CORCs”) over 30 years.
- The CORCs are expected to be independently verified and registered through Puro.earth, a leading standard for carbon removal projects.
- Carbon Streaming will receive 100% of the CORCs generated by the Project, with ongoing payments to Standard Biocarbon for each CORC sold.
- Carbon Streaming will also receive a revenue royalty on volume of biochar sold. The Company expects the Project to produce approximately 250,000 cubic yards (“yd3”) of biochar over 30 years.
- First biochar production and delivery of CORCs are expected in the second half of calendar year 2023.
- The Company has made an initial upfront deposit of US$0.5 million on closing, with additional payments of US$0.8 million as the Project achieves registration and production milestones.
- Biochar is a stable form of carbon which remains inert and prevents the release of CO2 emissions for centuries.
- Biochar can play an important role in climate change adaptation by increasing the water retention capacity of soil and catch basins, creating resiliency to extremes in precipitation while mitigating harmful runoff.
- By using consistently high-quality feedstock, and industry leading pyrolysis technology from PYREG of Dörth, Germany, the Project is targeting the production of high-quality biochar which meets specifications for the highest value applications.
- The Project will contribute to the local economy by providing employment in nearby communities.
- Through the use of PYREG technology, the Project is expected to deliver on eight UN Sustainable Development Goals, including Climate Action (13), Zero Hunger (2), Clean Water and Sanitation (6), Affordable and Clean Energy (7), Industry, Innovation and Infrastructure (9), Sustainable Cities and Communities (11), Responsible Consumption and Production (12), and Life on Land (15).
Carbon Streaming Founder and CEO Justin Cochrane stated: “We are excited to announce our second biochar removals streaming agreement in the USA. With strong storage permanence, we believe that biochar will have increasing importance in advancing the removal of global emissions. We look forward to future partnership opportunities with Standard Biocarbon as it scales its business in the northeastern United States.”
Standard Biocarbon President & CEO Fred Horton commented: “We are pleased to collaborate with Carbon Streaming as we bring this exciting project to life. Our vision for building biochar production through win-win partnerships with leading lumber mills provides a clear and realistic path to scale. This innovative funding from Carbon Streaming fills a critical role in enabling us to build our first pilot plant using this model. We believe this will help catalyze a new industry producing premium quality biochar with many beneficial applications, and supporting sustainable rural community development while putting millions of tons of carbon back in the ground.”
The Project comprises the development of a pilot facility using carbonization systems engineered and built by PYREG GmbH (“PYREG”), through which woodchips and sawdust from the Pleasant River Lumber Co. mill in Enfield, Maine are converted into premium-quality biochar. Biochar, short for biological charcoal, is a stable, porous, near-pure form of carbon which remains inert for centuries. CORCs are generated from the biochar’s ability to store carbon and prevent the release of CO2 into the atmosphere. The biochar itself also has a variety of applications in agriculture, environmental remediation and construction materials. In addition, the heat generated in the pyrolysis process is expected to be used in the mill’s drying kilns.
PYREG is a German net-zero technology engineering and manufacturing company. Since 2009, the company has deployed 50 of its plants globally. As a result, PYREG has a strong track record, with many of its customers producing both premium-quality biochar and generating CORCs under the Puro.earth standard. Moreover, Standard Biocarbon’s strong partnership with PYREG provides an excellent foundation for future project expansion, at numerous locations across New England and Eastern Canada. Given the importance of its partnership with Standard Biocarbon, PYREG recently established the office of its US subsidiary (Pyreg, Inc.) near Standard Biocarbon’s headquarters in Portland, Maine.
Over its 30-year life, the Project is expected to remove approximately 90,000 tCO2e emissions, generating an equivalent number of CORCs, and produce approximately 250,000 yd3 of biochar. First production of biochar and initial delivery of CORCs are targeted for the second half of calendar year 2023 and expected to ramp up to full production in 2024. Carbon Streaming will market and sell 100% of CORCs delivered from the Project and will also receive a royalty on volume of biochar sold. The CORCs are expected to be verified and registered through Puro.earth, a leading global standard for carbon removal projects.
Under the terms of the Enfield Biochar Stream, the Company will make an upfront deposit of up to US$1.3 million. At closing, US$0.5 million of the upfront deposit was paid and the Company will make additional milestone payments of US$0.8 million as the Project achieves registration and production milestones. Proceeds from the Carbon Stream are fundamental to the construction of the Enfield biochar pyrolysis facility. Carbon Streaming will also make ongoing delivery payments to Standard Biocarbon for each CORC sold under the Carbon Stream. Ongoing delivery payments will be toward the lower end of the range of the Company’s other stream investments since biochar has other revenue generating applications.
Removal credits are in high demand and typically trade at a premium. Pricing for CORCs on the Puro.earth CORC Biochar Price Index have ranged from approximately US$105/CORC to US$150/CORC year to date.