Base Carbon Announces Completion of Project Milestones Ahead of Schedule
TORONTO, Feb. 22, 2023 (GLOBE NEWSWIRE) — 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.
- 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.
Tel: +1 647 952 3979
E-mail: [email protected]
E-mail: [email protected]
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.