TORONTO, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Base Carbon Inc. (Cboe CA: BCBN) (OTCQX: BCBNF) with operations through its wholly-owned subsidiary, Base Carbon Capital Partners Corp. (“BCCPC”, together, with affiliates, “Base Carbon”, or the “Company”), is pleased to announce it has received proceeds of approximately $11.2 million from sales of carbon credits from its Vietnam household device and Rwanda cookstove projects. All financial references are denominated in U.S. dollars, unless otherwise noted.

Highlights:

• Received payment of approximately $11.2 million from the sale of carbon credits generated from its Vietnam and Rwanda projects.
• Received total payments to date of approximately $30.0 million from its Vietnam project, with full payback and initial capital return within approximately 2 years of initial capital commitment to the project.
• Maintains inventory of approximately 700,000 article 6 labeled carbon credits generated from the Rwanda project which the Company believes will be eligible for inclusion and delivery into programs like CORSIA, the international aviation industry framework to reduce/offset carbon emissions.
  

Vietnam Household Devices Project

Including the most 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 off-take arrangement. The Company has now achieved both initial capital returns and full payback of Base Carbon’s capital investment into the project. Beyond the first 7.4 million carbon credits produced from the project subject to the off-take sale arrangement, Base Carbon and its shareholders continue to have the right, but not the obligation, to purchase all carbon credits produced from the remaining life of the project, currently anticipated to be approximately 25 million carbon credits in “phase 2” of the project, at a predetermined price as further described in the Company’s first quarter management’s discussion and analysis.

Rwanda Cookstoves Project

Base Carbon completed an initial market sale of 20,000 carbon credits generated from its Rwanda project. This sale represents less than 3% of the initial carbon credits issued 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 labeled with Verra’s “Article 6 Authorized” designation.

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).

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.

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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, and the implementation of the CORSIA framework and eligibility of carbon credits thereunder, including carbon credits generated by the Company’s projects. 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.

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 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.