Carbon Streaming Corp (NEO: NETZ) this morning announced its latest carbon credit streaming arrangement. The latest project will see the firm head to Africa, where it is working to support the implementation of safe water solutions and fuel efficient cookstoves across five countries.
The arrangement will see the company partake in a project focused across Mozambique, Zambia, Malawi, Tanzania, and Uganda, where a total of four safe water projects and three cookstove projects are to be conducted. Collectively, the projects are set to reduce an estimated 50 million tonnes of CO2 equivalent emissions across a fifteen year time period.
The projects are be conducted via Community Carbon and UpEnergy Group. Community Carbon was launched earlier this year by UpEnergy, whom has extensive experience in carbon projects, which has been established over the course of a decade of involvement in the sector.
In terms of Carbon Streaming’s investment, the company will place a total of US$6.5 million into the projects upon closing, with further payments of US$13.5 million to be made upon certain milestones being met. A portion of the credits are then to be provided to the company over the fifteen year life of the project, although a hard figure was not provided. A percentage of the carbon credit sales is also to be used to support additional programs in the region over the lifetime of the transaction.
“We’re excited to announce our first energy efficiency carbon streams, as financing the deployment of these critical innovations provides healthy diversification to our growing portfolio of high-impact carbon credits from some of the best carbon projects in the world. This venture demonstrates the flexibility and capability of our investment structure in delivering a diversified carbon portfolio at scale,” said CEO Justin Cochrane.
The transaction is currently expected to close in mid-2022.
Carbon Streaming last traded at $4.70 on the Neo.
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