TORONTO, August 8, 2024 (GLOBE NEWSWIRE) — Base Carbon Inc. (Cboe CA: BCBN) (OTCQX: BCBNF), operating through its wholly-owned subsidiary Base Carbon Capital Partners Corp. (“BCCPC“, together with affiliated companies, “Base Carbon“, or the “Pursue”), is pleased to announce that it has raised approximately US$11.2 million from the sale of carbon credits from its home appliance projects in Vietnam and cook stove projects in Rwanda. All financial disclosures are in US dollars unless otherwise stated.
Highlights:
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Received payment of approximately US$11.2 million from the sale of carbon credits from its projects in Vietnam and Rwanda.
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To date, payments totaling approximately US$30.0 million have been received from the Vietnam project. Full amortization and repayment of the original capital will occur within approximately 2 years of the initial capital commitment for the project.
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Manages an inventory of approximately 700,000 Article 6 carbon credits from the Rwanda Project that the Company believes are eligible for inclusion and provision in programs such as CORSIA, the international aviation industry’s framework for reducing/offsetting carbon dioxide emissions.
Vietnamese household appliance project
Including the recent payment, Base Carbon has received a total of approximately $30.0 million from the contracted sale of carbon credits generated from its Vietnam Project and expects additional proceeds of approximately $6.3 million in future payments from the Project’s offtake agreement. The Company has now realized both initial capital returns and full recoupment of Base Carbon’s capital investment in the Project. Beyond the initial 7.4 million carbon credits generated from the Project subject to the offtake agreement, Base Carbon and its shareholders will continue to have the right, but not the obligation, to purchase all carbon credits generated during the remaining life of the Project. Approximately 25 million carbon credits are currently expected to be generated in “Phase 2” of the Project. The purchase price will be fixed in advance as further described in the Company’s first quarter management’s discussion and analysis.
Cooking stove project in Rwanda
Base Carbon has completed an initial market sale of 20,000 carbon credits from its Rwanda project. This sale represents less than 3% of the initial carbon credits allocated to the Company from this project and was designed as a market-based “test trade” to ensure commercial market-based capabilities. The Company continues to hold an inventory of approximately 700,000 carbon credits marked with Verra’s “Article 6 Authorized” designation.
While the Company regularly evaluates market-based opportunities to sell carbon credits, it believes that maintaining a short-term inventory of carbon credits from the Rwanda Project will enable it to benefit positively from expected price dynamics and liquidity when it becomes eligible for programs such as CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation).
About Base Carbon
Base Carbon finances projects primarily undertaken in the global voluntary carbon markets. We aim to be the preferred partner for carbon projects by providing capital and management resources to carbon removal and reduction projects worldwide. Where appropriate, we will leverage technologies within the developing environmental industries to improve efficiency, commercial credibility and trade transparency. For more information, visit www.basecarbon.com.
Media and investor inquiries
Base Carbon Inc.
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Phone: +1 647 952 3979
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Cautionary note regarding forward-looking information
This press release contains “forward-looking information” within the meaning of applicable securities laws with respect to the focus of Base Carbon’s business, the expected issuance and timing of carbon credits, the application of and market response to Article 6 of the Paris Agreement and the Article 6 Authorized Label, the receipt of proceeds from the disposal of carbon credits, and the implementation of the CORSIA framework and the eligibility of carbon credits under that framework, including carbon credits generated by the Company’s projects. In some cases, but not necessarily all cases, forward-looking information can 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 descriptions of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but represent management’s expectations, estimates and projections of future events. These statements should not be relied upon 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 on reasonable assumptions and expectations, readers should not place undue reliance on such forward-looking information because they involve assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from any anticipated future results, performance or achievements expressed or implied by such forward-looking information.
With respect to the Rwanda Cookstove Project and the Vietnam Home Appliance Project, there are certain factors that will affect the commercial success of such projects, including the timing and number of carbon credits expected, including, but not limited to: (i) the Company has engaged industry-leading experts/consultants/assessors to assist in the evaluation, planning, negotiation and implementation of such projects, (ii) the work products, including monitoring reports, of each project’s validation and verification body, (iii) the market prices for carbon credits for projects, (iv) the verification of ongoing project monitoring reports and the issuance of carbon credits by Verra, (v) changes in laws, regulations or policies in the relevant jurisdictions and (vi) the Company having sufficient funds to make all required purchase price payments for carbon credits.
With respect to the cookstove project in Rwanda and the home appliance project in Vietnam, there are certain assumptions that affect the commercial success of these projects, including the timing and number of carbon credits expected to be generated. These include, but are not limited to: (i) the cookstoves and water purifiers distributed meet specifications when used and participating households use the appliances as contemplated in the project estimates, (ii) the Company’s in-country project partners, i.e. DelAgua Group in the case of the cookstove project in Rwanda and SIPCO and the project off-takers in the case of the home appliance project in Vietnam, fulfilling their obligations related to the development and operation of the projects, and (iii) continued participant participation and public support for the voluntary carbon market, including from relevant government authorities.
The forward-looking statements made herein are subject to a number of risk factors and uncertainties, many of which are beyond the control of the Company, 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. In particular, reference is made to the Company’s Management’s Discussion and Analysis for the fiscal year ended December 31, 2023 and the most recent Annual Information Form filed with Canadian provincial securities regulators (and available at www.sedarplus.ca) for a more detailed discussion of some of the factors underlying the forward-looking statements and the risks that could affect the Company’s ability to meet the expectations set out in the forward-looking statements 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 differ 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 any statements containing 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.
