Base Carbon Inc. (NEO: BCBN) (OTCQX: BCBNF)
("
Base Carbon", or the
"
Company"), a financier and developer of emission
reduction, removal and related climate action projects, provides an
operational update regarding its initial projects.
Highlights:
- Vietnam project partner
SIPCO has completed the full distribution of project devices, an
aggregate of 1.214 million fuel efficient cookstoves and water
purifiers, four months ahead of the initial schedule and on
budget.
- First issuance of carbon
credits generated from the Vietnam project expected
mid-2023.
- Citigroup is contracted to
purchase initial 7.4 million carbon credits generated from the
Vietnam project.
- Rwanda project partner
DelAgua has completed the full distribution of 250,000 cookstoves,
on schedule and on budget.
- Base Carbon and Danish Red
Cross engage key project consultant to provide mapping and scoping
services for Philippines blue carbon project.
Base Carbon is pleased with the progress of both
our Vietnam and Rwanda projects as we anticipate transitioning from
a development stage to a revenue-generating company in 2023. Having
now completed the distribution of cookstoves and water purifiers
(the “Devices”) in Vietnam, the final stage of
development involves initial project monitoring and reporting by an
independent validation and verification body
(“VVB”) and the subsequent verification of the
associated report by Verra, the project registry. In Rwanda, the
project documentation has been submitted to Verra and the project
is pending registration. The Company anticipates initial
verification and issuance of carbon credits in mid-2023 for both
the Vietnam and Rwanda projects.
“Achieving full distribution of the Devices for
our two initial carbon projects is foundational for our company.
The Vietnam and Rwanda projects are expected to generate highly
attractive capital returns for our shareholders as well as durable,
additional, co-benefits for the environment and local communities.
As our Company transitions to a revenue generating business, we
look forward to continued capital deployments within voluntary
carbon projects as we diversify our business and future revenue
streams,” stated Michael Costa, Chief Executive Officer of Base
Carbon.
The project Devices are critical to carbon
emission reduction and lead to both positive and measurable social
and health co-benefits for millions of individuals within the
households and communities of rural Rwanda and Vietnam. Globally,
nearly one out of three people rely on polluting cooking fuels
including wood, charcoal, and kerosene. Such ‘dirty cooking’ is a
leading source of global carbon emissions and kills approximately
four million people per annum due to respiratory illness, according
to the Clean Cooking Alliance.
“As stewards of shareholder capital within an
emerging public market, we have been diligently focused on
generating predictable revenue streams via contracted project
offtake sales to credible counterparties. We continue to see stable
market pricing for household device carbon credits and expect to
begin re-allocating project cashflows into our curated project
pipeline later this year,” remarked Wes Fulford, Chief Financial
Officer.
Vietnam Household Devices
Project
All 1,214,000 Vietnam project Devices have now
been distributed to participating households, four months ahead of
the initial schedule and on budget. Initial VVB monitoring and
reporting work commenced in early January 2023, and upon review and
verification of the associated report by carbon registry Verra, the
first issuance of project carbon credits is anticipated to be sold
to Citigroup via a contracted project offtake agreement. Initial
monitoring work has been completed by an independent,
Verra-accredited VVB. Submission of the initial monitoring report
to Verra in support of the first carbon credit issuance is
anticipated in early March 2023, with initial project carbon credit
generation anticipated in mid-2023.
Rwanda Cookstove Project
Distribution of all 250,000 cookstoves
associated with our initial project in Rwanda has been completed.
Project validation with Verra is anticipated in the near-term with
initial monitoring, reporting and verification efforts to commence
immediately thereafter. Project partner DelAgua continues to
conduct large-scale weekly household visits to further community
education and increase efficient use of the cookstoves. Carbon
credit sales and marketing activities are currently being
coordinated in anticipation of the first carbon credit issuance in
mid-2023.
Danish Red Cross Partnership
Update
Base Carbon has formally engaged a project
consultant and is actively engaged in local site mapping and
project design. In November 2022, the Company, through its
subsidiary Base Carbon Capital Partners Corp., entered into a
letter of intent with the Danish Red Cross to scope, assess and
potentially develop one or more mangrove-related carbon reduction
projects in Southeast Asia which are anticipated to follow Verra’s
“Tidal Wetland and Seagrass” methodology. The Danish Red Cross are
recognized innovators in designing investment and underwriting
structures related to the commercialization of carbon, climate and
social benefit projects. Potential projects related to the
prospective partnership will be jointly funded by the Danish Red
Cross including other Red Cross affiliated entities.
Corporate Updates – Portfolio
Evolution
The Base Carbon origination team is continuing
with the assessment of additional carbon development opportunities
with the intention of further diversifying its portfolio of carbon
projects. This is anticipated to include projects across a range of
methodologies and jurisdictions that fit within the Company’s
investment and industry thesis as the global community works
towards corporate, sovereign and global net-zero targets.
Base Carbon’s project selection strategy
involves, in part, partnering with or working alongside
best-in-class project developers and partners, investment grade
credit-rated corporate partners and non-governmental organizations
to mitigate project and capital risk while maintaining upside
carbon price exposure.
About Base Carbon
Base Carbon provides capital, development
expertise and management operating resources to projects involved
in the voluntary carbon markets. The company seeks to be the
preferred carbon project partner in providing capital and
developmental resources to carbon projects globally and, where
appropriate, will endeavour to utilize technologies within the
evolving carbon industry to enhance efficiencies, commercial
credibility, and trading transparency. For more information, please
visit www.basecarbon.com.
Media and Investor
Inquiries
Base Carbon Inc.Investor RelationsTel: +1 647
952 3979E-mail: investorrelations@basecarbon.com
Media InquiriesE-mail: media@basecarbon.com
Michael Costa, Chief Executive Officer, and Ryan
Hornby, Chief Legal Officer are responsible for this press
release.
Cautionary Statement Regarding Forward
Looking Information
This press release contains “forward-looking
information” within the meaning of applicable securities laws with
respect of the Company, including but not limited to, statements
relating to the focus of Base Carbon’s business, the Company’s
carbon reduction projects and financial results of the Company. 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.
Statements about, among other things, Base Carbon’s strategic plans
and details of development and revenue generation timelines of
current projects (including that the first issuance of carbon
credits associated with the Vietnam project and the Rwanda project
is anticipated mid-2023) are all forward-looking information. 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 Company’s carbon credit
projects, the Rwanda project and the Vietnam project, certain
factors that influence successfully meeting the anticipated first
issuance of carbon credits associated with such projects in
mid-2023 include, among other things: (i) the Company has retained
industry leading experts/consultants/advisors to assist with the
planning and execution of such projects, (ii) the timelines for
execution of the development of the Rwanda project and the Vietnam
project has to date been in line with (or accelerated from) initial
expectations, and (iii) the Company has sufficient funds on hand to
complete the execution of its milestones stated herein for the
Rwanda project and the Vietnam project.
In respect of the Company’s carbon credit
projects, the Rwanda project and the Vietnam project, certain
assumptions that influence successfully meeting the anticipated
first issuance of carbon credits associated with such projects in
mid-2023 include, among other things: (i) the Company’s project
partners satisfy their obligations as expected by the Company and
on expected timelines, (ii) the household participants in the
projects utilize the Devices supplied to them in accordance with
the expectations under the projects, (iii) the validation process
in respect of the Rwanda project, being undertaken with Verra, the
organization that has been appointed as the carbon credit registry
for such project, occurs mid-2023, (iv) the completion and
submission to Verra of the initial project monitoring reports
prepared by the project VVBs occurs mid-2023, and (v) the initial
verification by Verra of the performance of the projects set out in
the VVB reports against the project methodology in order to enable
the first issuance of the resulting carbon credits occurs mid-2023,
which timeline is reflective of the Company’s observation of
Verra’s current timeline for the verification of similar carbon
reduction projects being undertaken by other parties.
The evaluation and negotiation by the Company of
new additional projects described herein is in respect of potential
opportunities which are non-binding proposals only and which are
subject to due diligence and/or negotiation of definitive
documentation by the Company as of the date of this press release.
Readers are cautioned that there can be no assurance that the
Company will be able to enter into definitive agreements for, or
otherwise proceed with or realize upon, such potential
opportunities on a timely basis or at all, nor that the nature and
scope of such potential opportunities will ultimately be as
described herein or as to the extent of any financial, operational
or other benefits which may be realized by the Company in
proceeding with such potential opportunities. Potential projects
may be removed from the Company’s pipeline from time to time or at
any time as a result of, among other things, unsatisfactory results
from the Company’s due diligence or negotiation of terms and
conditions in respect of such potential projects.
The forward-looking information provided herein
is subject to a variety of risks 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 information. Certain risk factors include
but are not limited to: the validation process in respect of the
Rwanda project may be outside of the control of the Company and may
take longer than expected by the Company or may not occur at all;
the project monitoring by an independent third-party validation and
verification organization, or VVB, may be outside of the control of
the Company and may take longer than expected by the Company or may
not occur at all; the verification by Verra of the performance of
the projects against project methodology in order to enable the
issuance of the resulting carbon credits is outside of the control
of the Company and may take longer than expected by the Company or
may result in the issuance of fewer carbon credits than expected by
the Company; failure or timing delays for projects to be verified,
validated and ultimately developed; dependence on project
developers, operators and owners, including failure by such
counterparties to make payments or perform their operational or
other obligations to the Company in compliance with the terms of
contractual arrangements between the Company and such
counterparties; uncertainties and ongoing market developments
surrounding the regulatory framework applied to the verification,
and cancellation of carbon credits and the Company’s ability to be,
and remain, in compliance; dependence on key management; limited
operating history for the Company’s current strategy; concentration
risk; inaccurate estimates of growth strategy, including the
ability of the Company to source appropriate
opportunities/investments; volatility in prices of carbon credits
and demand for carbon credits; general economic, market and
business conditions; actions by governmental authorities, including
changes in or to government regulation, taxation and carbon pricing
initiatives; uncertainties surrounding the local, national and
global impact of the COVID-19 pandemic; foreign operations and
political risks; risks arising from competition and future
acquisition activities; due diligence risks, including failure of
third parties’ reviews, reports and projections to be accurate;
global financial conditions, including fluctuations in interest
rates, foreign exchange rates and stock market volatility; failure
of projects to generate carbon credits, or natural disasters such
as flood or fire which could have a material adverse effect on the
ability of any project to generate carbon credits; change in social
or political views towards climate change and subsequent changes in
corporate or government policies or regulations; operating and
capital costs; potential conflicts of interest; unforeseen title
defects; volatility in the market price of the Company’s shares;
the effect that the issuance of additional securities by the
Company could have on the market price of the Company’s shares; and
other risk factors, including those found in the Company’s
management discussion and analysis for the three and nine month
periods ended September 30, 2022 filed on the Company’s profile on
SEDAR at www.sedar.com and discussed in the Company’s other public
filings available on SEDAR. Readers are cautioned that the
foregoing list of factors is not exhaustive.
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.
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