Carbon Streaming Enters Agreement For Up To 44.1 Million Canada-Based Carbon Credits
Carbon Streaming Corp (NEO: NETZ) has entered into its first carbon investment in Canada. The firm has reached a streaming agreement with Will Solutions, whom is an operator of carbon reduction projects.
The agreement will see Carbon Streaming support projects in both Quebec as well as Ontario, with a focus on sustainable community projects. The projects are presently focused on emission reductions via waste diversion, conversion and energy efficiency programs and are focused on enrolling and rewarding small municipalities, non-profit organizations, individual proprietorships, and small and medium enterprises for greenhouse gas reduction.
The streaming arrangement is expected to generate up to 44.1 million carbon credits for the company over the course of the next ten years. The company is to receive 50% of all carbon credits generated until this figure is achieved, with the first such credits expected to be delivered in the second half of 2023. 425,000 to 525,000 credits are expected to be delivered at that time, which will then grow on an annual basis to an estimated 10 million by 2030.
As consideration for the stream, an initial cash payment of US$4.0 million is to be made on closing, with up to $16 million in additional funding to be provided as certain implementation and enrollment milestones are met. Delivery payments on each carbon credit sold are also to be made to Will Solutions, although further details were not provided.
“We are delighted to announce our first Canadian carbon stream with Will Solutions. The Sustainable Community Projects are an excellent addition to our portfolio and highlight what Canadians can do to reduce emissions. The Will Solutions team is a pioneer in carbon, having developed the Verra certified methodology and grown the Sustainable Community right here in our back yard for over a decade,” commented CEO Justin Cochrane.
The arrangement follows the company last month entering its first energy efficiency carbon credit stream, via a project it is supporting in Africa for safe water solutions and fuel efficient cookstoves.
Carbon Streaming Corp last traded at $3.51 on the Neo.
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