TORONTO, Oct. 16, 2024 (GLOBE NEWSWIRE) -- Base Carbon Inc. (Cboe CA: BCBN) (OTCQX: BCBNF) with operations through its wholly-owned subsidiary, Base Carbon Capital Partners Corp. (together, with affiliates, “Base Carbon”, or the “Company”), is pleased to announce the following project updates.
Project Highlights
Achievement of key India ARR project milestone with completion of planting all 6.5 million planned project trees which are expected to generate 1.6 million carbon credits over the project life.
The Company anticipates receiving 1,014,635 Article 6 Authorized labeledcarbon credits from the Rwanda project in the coming weeks. Management recently completed a successful project site visit to Rwanda including in-country meetings with the DelAgua Group, the project developer, and government officials.
Base Carbon anticipates receiving an estimated 1.8 million additional carbon credits as early as late Q4, 2024 with respect to the next issuance from its Vietnam project.
Verra has recently announced an updated methodology for cookstove projects with the intention of enhancing the market perception of the credibility and integrity of such projects.
India Afforestation, Reforestation, and Revegetation (ARR) Project Update
The Company, through BCCPC, executed a project agreement with Value Network Ventures Advisory Services Pte Ltd. with respect to a nature-based ARR carbon removal project facilitating the reforestation of degraded rural farmlands in the northern Indian state of Uttar Pradesh.
The Company is pleased to announce the completion of planting all 6.5 million planned project trees representing the achievement of a key project milestone. Project validation is ongoing with Verra, the carbon registry, with completion of the validation process expected early in the first quarter of 2025. It is anticipated that the project will generate 1.6 million high-quality nature-based removal carbon credits over an expected 20-year project life, beginning in 2025.
Rwanda Cookstoves Project Update
The Company continues to hold an inventory of approximately 700,000 carbon credits from the Rwanda project which are labeled with Verra’s “Article 6 Authorized” designation. The second issuance of 1,014,635 Article 6 Authorized carbon credits is anticipated within the coming weeks, which is net of the credits held back under the terms of the Letter of Authorization with the Rwanda Government.
While the Company regularly evaluates market-based opportunities for the sale of carbon credits, the Company believes that maintaining a short-term inventory of the Rwanda project carbon credits will allow for positive exposure to anticipated price momentum and liquidity upon eligibility under programs like CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation).
Last month, management completed a successful project site visit and in-country meetings with the DelAgua Group, the project developer, as well as government officials. Company officials visited a selection of participating households and had the opportunity to speak with numerous members of the DelAgua team at various organizational levels. The Company continues to believe in, and support, the operational excellence provided by the DelAgua Group as the project developer.
Vietnam Household Devices Project Update
The Company’s Vietnam project is continuing to operate as anticipated and the Company expects to receive an estimated 1.8 million additional carbon credits as early as late Q4, 2024.
Verra’s Cookstove Project Methodology Update
Verra, the carbon registry for each of the Vietnam and Rwanda projects, recently announced an updated methodology for cookstove projects with the intention of enhancing the market perception of the credibility and integrity of such projects. Click here for Verra’s press release.
The updated methodology applies only to newly registered Verra cookstove projects and is not immediately applicable to either of Base Carbon’s Vietnam or Rwanda projects. The updated methodology is anticipated to be applied to all Verra-registered cookstove projects for verification activities related to 2027 carbon credit vintages onwards.
As per details outlined in Verra’s press release, the revised methodology is subject to ongoing review and further adjustments such as alignment with the work of the Clean Cooking Alliance (CCA) and their planned Comprehensive Lowered Emissions Assessment and Reporting (CLEAR) methodology.
About Base Carbon
Base Carbon is a financier of projects involved primarily in the global voluntary carbon markets. We endeavor to be the preferred carbon project partner in providing capital and management resources to carbon removal and abatement projects globally and, where appropriate, will utilize technologies within the evolving environmental industries to enhance efficiencies, commercial credibility, and trading transparency. For more information, please visit www.basecarbon.com.
Cautionary Statement Regarding Forward Looking Information
This press release contains “forward-looking information” within the meaning of applicable securities laws relating to the focus of Base Carbon’s business, the expected issuance, and timing, of carbon credits, the application of Article 6 of the Paris Agreement and the “Article 6 Authorized Label” and market reaction thereto, the receipt of proceeds from the disposition of carbon credits, the implementation of the CORSIA framework and eligibility of carbon credits thereunder, including carbon credits generated by the Company’s projects, and the timing of project validation and continued development of the India project. In some cases, but not necessarily in all cases, forward-looking information may be identified by the use of forward-looking terminology such as “expects”, “anticipates”, “intends”, “contemplates”, “believes”, “projects”, “plans” or variations of such words and similar expressions or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events. These statements should not be read as guarantees of future performance, results, or achievements.
Although management believes that the anticipated future results, performance or achievements expressed or implied by the forward-looking information are based upon reasonable assumptions and expectations, readers should not place undue reliance on forward-looking information because it involves assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking information.
In respect of the Rwanda cookstoves project and the Vietnam household devices project, certain factors that influence the commercial success of such projects, including the timing and number of expected carbon credits, include among other things: (i) the Company has retained industry leading experts/consultants/advisors to assist with the evaluation, planning, negotiation and execution of such projects, (ii) the work product, including monitoring reports, of each project’s validation and verification body, (iii) project carbon credit market prices, (iv) the verification of ongoing project monitoring reports and issuance of carbon credits by Verra, (v) changes to laws, regulation or policies in applicable jurisdictions, and (vi) the Company has sufficient funds on hand to make any required carbon credit purchase price payments.
In respect of the Rwanda cookstoves project and the Vietnam household devices project, certain assumptions that influence the commercial success of such projects, including the timing and number of expected carbon credits, include among other things: (i) distributed cookstoves and water purifiers perform to specification when used and participating households use the devices as contemplated by project estimates, (ii) the Company’s in-country project partners, being the DelAgua Group in the case of the Rwanda cookstoves project and SIPCO and the project offtaker in the case of the Vietnam household devices project, perform their obligations in connection with the development and operation of the projects, and (iii) continued participant involvement and public support, including that of applicable governmental authorities, of the voluntary carbon market.
In respect of the India afforestation, reforestation, and revegetation project, certain factors that influence the commercial success of the project include, among other things: (i) the Company’s expertise with respect to the evaluation, planning and negotiation of the project, (ii) the conduct of the project counterparties, including cooperation with local small-land owners, (iii) project costs and carbon credit market prices, (iv) ongoing project monitoring and issuance of carbon credits by Verra, (v) changes to laws and regulation in the Republic of India, and (vi) extreme weather event and natural disasters.
In respect of the India afforestation, reforestation, and revegetation project, certain assumptions that influence the commercial success of the project include, among other things: (i) the development the project remains in line with anticipated timelines and costs, (ii) project counterparties, including project partner Value Network Ventures Advisory Services Pte Ltd., its subcontractors and local small-land owners, perform their contractual and/or standard operating procedures, (iii) the survival of trees, (iv) the growth rates of trees are consistent with the expectations under the project which is then reflected by monitor reports accepted by Verra, (v) the Company has sufficient funds to satisfy its capital commitments, and (vi) continued participant involvement and public support of the voluntary carbon market.
The forward-looking statements made herein are subject to a variety of risk factors and uncertainties, many of which are beyond the Company’s control, which could cause actual events or results to differ materially and adversely from those reflected in the forward-looking statements. Readers are cautioned that forward-looking statements are not guarantees of future performance. Specific reference is made to the management’s discussion and analysis for the Company’s fiscal year ended December 31, 2023 and the most recent Annual Information Form on file with the Canadian provincial securities regulatory authorities (and available on www.sedarplus.ca) for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release.
Should one or more of the risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual events or results may vary materially and adversely from those described in the forward-looking information. The forward-looking information contained in this press release is provided as of the date of this press release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
