InvestorIntel’s Tracy Weslosky recently interviewed Chad Clovis, the CEO of Karbon-X Corp. (OTC: KARX), a trailblazing carbon marketing and project development firm that is at the vanguard of North America’s ESG conversation.

In this interview, Chad explains how Karbon-X’s innovative approach includes a user-friendly app that enables individuals and small businesses to conveniently offset their carbon footprints, allowing all of us to participate in the fight against climate change.

Cost-effective, Chad discloses how the app’s popularity is skyrocketing. Discussing the latest news and events for Karbon-X, they finish by discussing a recent partnership with Resolute Resources Ltd. aimed at reducing emissions from on-site fuel usage. To access the full interview, click here

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About Karbon-X Corp.

Karbon-X is a cutting-edge carbon marketing firm specializing in direct selling of carbon credits to businesses and individuals via a proprietary app. The company actively invests in projects with the potential to generate carbon credits, fostering the growth of the green economy through an online social media community.

To know more about Karbon-X Corp., click here

Disclaimer: Karbon-X Corp. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp. (IIC) does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain“forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken,  as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

In this InvestorIntel interview, Tracy Weslosky talks with FuelPositive Corporation’s (TSXV: NHHH | OTCQB: NHHHF) Chairman and CEO Ian Clifford about the “disruptive nature” of their green ammonia production systems. By placing their systems onsite, Ian discusses how FuelPositive allows farmers and other end users to have a stable and independent supply of ammonia at a cost that is locked in for decades.

Ian goes on to explain how FuelPositive’s green ammonia production systems start to generate carbon credits as soon as they became operational. “FuelPositive owns those credits contractually”, Ian adds, “but we have the ability to utilize the value of those credits to help end users meet their operating targets and their return on investment targets as well.”

To access the full InvestorIntel interview, click here

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About FuelPositive Corporation

FuelPositive is a Canadian technology company committed to providing commercially viable and sustainable, “cradle to cradle” clean technology solutions, including an on-farm/onsite, containerized Green Ammonia (NH3) production system that eliminates carbon emissions from the production of Green Ammonia.

By focusing on technologies that are clean, sustainable, economically advantageous and realizable, the Company aims to help mitigate climate change, addressing unsustainable agricultural practices through innovative technology and practical solutions that can be implemented now. The FuelPositive on-farm/onsite, containerized Green Ammonia production system is designed to produce pure, anhydrous ammonia for multiple applications, including fertilizer for farming, fuel for grain drying and internal combustion engines, a practical alternative for fuel cells and a solution for grid storage. Green Ammonia is also considered a key enabler of the hydrogen economy.

FuelPositive systems are designed to provide for Green Ammonia production on-farm/onsite, where and when needed. This eliminates wildly fluctuating supply chains and offers end-users clean fertilizer, energy and Green Ammonia supply security while eliminating carbon emissions from the production process. The first customers will be farmers. Farmers use 80% of the traditional grey ammonia produced today as fertilizer.

To know more about FuelPositive Corporation, click here

Disclaimer: FuelPositive Corporation is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

In this InvestorIntel interview, Byron W King interviews dynaCERT Inc.‘s (TSX: DYA | OTCQX: DYFSF) President, CEO, and Director Jim Payne about dynaCERT’s proprietary HydraGEN™ Technology. Proven to be effective in improving fuel economy and significantly reducing greenhouse gases in internal combustion engines, Jim provides an update on how six of the largest mining companies in the world are adapting dynaCERT’s HydraGEN™ Technology.

Jim says that in addition to reducing particulate matter and toxic gases by more than 50%, dynaCERT’s HydraGEN™ Technology results in up to 88% reduction in nitrogen oxides right at the combustion. With growing concerns around climate change, Jim discusses how “dynaCERT has a technology right now that can make a substantial difference” by reducing emissions. Describing dynaCERT’s HydraLytica™ Telematics as a “fleet management system on steroids” that measures fuel savings and provides emission reduction, Jim explains how this technology generates carbon credits.

To access the full InvestorIntel interview, click here.

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About dynaCERT Inc.

dynaCERT Inc. manufactures and distributes Carbon Emission Reduction Technology along with its proprietary HydraLytica™ Telematics, a means of monitoring fuel consumption and calculating GHG emissions savings designed for the tracking of possible future Carbon Credits for use with internal combustion engines. As part of the growing global hydrogen economy, our patented technology creates hydrogen and oxygen on-demand through a unique electrolysis system and supplies these gases through the air intake to enhance combustion, which has shown to lower carbon emissions and improve fuel efficiency. Our technology is designed for use with many types and sizes of diesel engines used in on-road vehicles, reefer trailers, off-road construction, power generation, mining and forestry equipment.

To know more about dynaCERT Inc., click here

Disclaimer: dynaCERT Inc. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

Today’s mining industry is not the mining industry of your grandfather – but you wouldn’t know it judging by popular (mis)conceptions and perceptions. The vast majority of companies have invested extensively in technologies allowing cleaner and more profitable operations, and in programs promoting durable economic development in communities near mine sites.

So, if this is the case, why are there so often accusations of “greenwashing” and what the heck is greenwashing anyway?

Simply stated, greenwashing is when a company which isn’t doing very much to transform its operations to a more sustainable and equitable footing wants to pretend otherwise. Greenwashing often is characterized by vague and sweeping statements of intent rather than concrete and specific examples of programs and practices. It is an attempt to convince investors and the public that a company is doing more than it is in the domain of “green.”

Now, there are a couple of important caveats. First, the degree of specificity for a company depends on its stage of development. A junior exploration company, for instance, clearly has far fewer specifics to cite and therefore statements of intent, coupled with the specific examples possible (often involving reduced drill waste and improved post-drilling restoration, for example) are perfectly acceptable. Not so, however, for mature production companies. Second (and applicable throughout the industry) there is an understandable confusion about what is regarded as acceptable investments and program performance to merit the designation of “sustainable green production.”

Some international and regional organizations such as the United Nations and the European Union are diligently working on sustainable mining standards, as do some individual countries. In the US, for instance, the Securities and Exchange Commission is actively working on developing standards which reportedly may resemble those of the EU while incorporating some of the principles of the UN Sustainable Development Goals. Within the UN SDGS, item #12, Responsible Consumption and Production, is of particular relevance to the extractive industries.

Fundamentally, the concept of responsible stewardship is at the heart of sustainable mining, and applies equally to all three elements of ESG – Environmental, Social and Governance.

One possible format for concretely reporting on activities related to being or becoming sustainable has five areas, including:

1. Reduce, Reuse and Rethink mining waste (tailings and beyond);
2. Water (same three R’s as above and incredibly key);
3. Lower CO2 emissions by transitioning to renewable energy supporting operations. Some companies also are exploring carbon credits by, among other options, maintaining more forested areas within concessions;
4. Ensure communities thrive both during and after the life of the mine. This involves extensive consultations and cooperation with expert implementing bodies; and,
5. Restore the land to its natural state at the conclusion of the mine cycle. One useful source working on global standards is the International Organization for Standardization (ISO) in Geneva.

In addition to working on developing standards for producers, governments such as the UK have produced guides for investors to try and determine whether a company is green or is simply greenwashing. The US Securities and Exchange Commission (SEC) proposed similar investor guidelines in June of this year, but so far these apply only to advisors and funds, not extractive companies.

However, the probable intention of the SEC, that such funds and investors in turn will pressure mining companies to be more specific and transparent in their ESG disclosures, apparently is paying off, potentially allowing their goal to be achieved without the need to produce prescriptive and controversial guidelines. Rumors continue to abound, however, that such specific guidance may yet be forthcoming.

The bottom line? To be green in practice likely also is to be green in profit, as investors increasingly will choose true green over greenwashed.

In a recent InvestorIntel interview, Tracy Weslosky spoke with Dr. Jon Gluckman, President and CEO of Sixth Wave Innovations Inc. (CSE: SIXW | OTCQB: SIXWF) about how Sixth Wave’s IXOS® gold adsorption and recovery technology can help reduce costs and increase yield for gold mines resulting in as much as US$100/Troy Oz savings.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Dr. Gluckman said that Sixth Wave’s IXOS® purification polymer is eco-friendly and is a superior replacement for the activated carbon used today in the gold mining industry. He went on to explain how IXOS® can provide additional carbon credits for reducing carbon dioxide emissions and help enhance a gold mine’s ESG posture. Currently working with some of the major gold mining companies, Dr. Gluckman said that Sixth Wave’s IXOS® technology can also be used in silver mining and in that of other high value metals.

To watch the full interview, click here

About Sixth Wave Innovations Inc.

Sixth Wave is a development stage nanotechnology company with patented technologies that focus on extraction, purification, and detection of target substances at the molecular level using highly specialized Molecularly Imprinted Polymers (MIPs). The Company is in the process of commercializing its, IXOS^®, a line of extraction polymers for the gold mining industry.

Sixth Wave can design, develop, and commercialize MIP solutions across a broad spectrum of industries. The company is focused on nanotechnology architectures that are highly relevant for detection, purification, and separation of viruses, biogenic amines and other pathogens, and nutraceuticals for which the Company has products at various stages of development.

To learn more about Sixth Wave Innovations Inc., click here

Disclaimer: Sixth Wave Innovations Inc. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

The carbon credits market has been doing very well the past year. The world’s first and largest market for trading carbon credits is the European Union Emissions Trading System (EU ETS). Under the EU ETS, regulated entities buy or receive emissions allowances, which they can trade with one another as needed. The EU ETS works on the ‘cap and trade’ principle as you can read here. The key is that emitters can purchase carbon credits and if they exceed their emissions caps they are fined heavily. Meanwhile, companies that reduce carbon emissions (renewable energy, forestry etc) can earn money by selling their carbon credits. The idea is that by placing a cost on carbon it helps motivate emitters to reduce emissions.

Reports have indicated that a carbon price in excess of US$100/t may be needed by 2030 in order to stay below the temperature goals contained in the Paris Agreement.

Today’s company aims to accelerate the world’s transition to a net-zero carbon future by bringing capital to projects that might not otherwise be developed. In return for the capital, the company receives their carbon credits.

EU Carbon permits prices have risen 162% over the past year

EU Carbon permits 1 year price chart

Source: Trading Economics

Note: Carbon credit pricing varies globally and by market. In the voluntary market prices are closer to only an average of US$12/t CO₂e as of December 2021.

Carbon Streaming Corporation (NEO: NETZ | OTCQB: OFSTF) offers a way for investors to invest into the growth of the carbon credit market. It acts as an investment vehicle, purchasing carbon credit revenue streams in return for an upfront payment. If the value of the carbon credits goes up or can be sold later at a profit then the stream becomes more valuable, thereby potentially boosting the value of the carbon streaming acquirer. Revenues and profits will also depend on quality and return on investment of the streaming deals that are made.

Carbon Streaming currently has a portfolio of 3 to 4 global carbon credits projects which are:

• Rimba Raya (Borneo, Indonesia)
• MarVivo Blue Carbon (Baja California Sur, Mexico)
• Cerrado Biome (Cerrado, Brazil)
• Bonobo Peace Forest (DRC, Africa) – Subject to FS results.

Carbon Streaming Corp.’s current portfolio of 3 to 4 carbon credit projects

Source: Carbon Streaming Corporation company presentation

Note: Carbon Streaming Corporation has only made an initial investment in the Bonobo Peace Forest, which will be directed to prepare Feasibility Studies and establish initial project activities. Hence why the chart says “3 to 4” projects.

Catalysts and strategy in 2022 for Carbon Streaming Corporation

In 2022 Carbon Streaming intend to achieve the following:

• Acquiring additional carbon credit stream and royalty investments to grow the portfolio. The Company has a pipeline of potential opportunities of $200 million near term (<12 months), out of a total pipeline of $700 million.
• Achieving revenue from the sale of carbon credits (see image below).
• Executing on a US listing on a major U.S. stock exchange, targeted within H1, 2022.

2022 estimated carbon credits to be received by Carbon Streaming Corporation from Rimba Raya and Cerrado Biome

Source: Carbon Streaming news release January 18, 2022

CEO Justin Cochrane stated in January 2022: “Moving into 2022, we anticipate the delivery of approximately 7.0 million carbon credits from our existing stream investments, announcing new carbon project investments around the globe and deepening relationships with our growing community of carbon project developers. We will continue to invest in building the best team in the carbon markets industry and progressing our plans for a proposed U.S. Listing.”

Note: Bold emphasis by the author. Also, the “attributable credits” to Carbon Streaming Corp. are quoted in the table above as 5 to 5.6 million.

Closing remarks

Carbon Streaming Corporation offers investors a growing portfolio (currently 3 to 4 projects) of carbon credit streams for ongoing revenue and potential long-term appreciation.

2022 should be a very good year for the Company as they achieve first revenues from about 5 to 5.6 million attributable carbon credits and pursue more project deals and a U.S listing on a major U.S exchange.

Carbon Streaming Corporation trades on a market cap of C$605M after a strong 2021 with their stock moving up from ~C$7.55 a year ago to now trade at C$13.00. Stay tuned in 2022.

Everyone has heard of cryptocurrency mining and data centers by now; but have you heard of a company that specializes in providing low cost infrastructure (power and water) and hosting services for these sectors. Specialized crypto mining and data centers use huge amounts of electricity so sourcing cheap, reliable, and ideally green electricity is paramount. Today’s company does just that.

Energy costs are a key factor for data centers and crypto mining operations due to the large amounts of electricity needed

Source: Link Global Technologies website

Link Global Technologies Inc. (CSE: LNK) (“LINK”) operates as a Bitcoin mining business as well as providing hosting and power purchase contracts to clients. LINK provides the infrastructure and operating expertise for digital mining and data hosting operations. The Company had its origins in crypto mining using low cost electricity so it has hands on experience.

LINK’s main businesses involve:

• LINK’s original Crypto mining business (1,400 Bitcoin mining machines).
• Securing power purchase agreements (PPAs) for customers in data centers or crypto mining. LINK arranges scalable, cost-effective access to clean energy. LINK provides power to over 5,000 mining machines within existing operational capacity.
• Supplying energy efficient containerized data centers.

LINK’s point of difference is energy efficiency. LINK is able to save data center or crypto mining clients money on their infrastructure costs (notably electricity and/or water bills) by providing expertise and personalized solutions for each client’s needs. LINK is able to tap into green energy sources as well as energy storage solutions.

LINK state: “Link’s staff has a combined 25 years of alternative and islanded power experience. We lead in the capture of unused energy and waste heat to generate power for the Blockchain……Link designs state of the art mobile facilities for environments spanning the globe. We have standalone solutions for every climate from the cold of Canada to the heat of Africa.”

About Link Global Technologies business and how they make revenue

Source: Link Global Technologies website

Revenue generation

LINK achieves its revenue primarily from its Bitcoin mining business and also from providing hosting (can be the complete infrastructure package) and power purchase contracts to clients.

One example of how LINK’s business model works is seen in the recently announced agreement to begin building the initial 10MW site with Mission World Group. LINK states: “Link will design, build and operate the infrastructure for the operation of the Miners and will also provide management services necessary to maintain 98% uptime on the Miners. In consideration of these services, Link will work with GSV to achieve competitive rates for power and receive a profit share of mined coins.”

LINK is able to fund such operations from capital such as the announced August 2021 deal to raise $18 million via an equity facility with Alumina Partners, LLC.

LINK acquires Clean Carbon Equity (“CCE”)

As announced on November 2, 2021, LINK completed the acquisition of Clean Carbon Equity (“CCE”). The acquisition allows LINK to take steps towards providing carbon offsets in the digital economy sector, immediately acquiring cash flow and creating new long-term revenue opportunities for the Company.

LINK CEO, Stephen Jenkins, commented: “This business model creates another revenue source apart from the digital currency mining by creating verifiable offsets that we can market and monetize.”

Closing remarks

Link Global Technologies is an innovative power and infrastructure solutions provider for crypto mining, and data center operations. These operations have huge electricity and water needs, so it makes sense to get the best supply deals. Increasingly this also involves sourcing green energy and energy storage backup systems, and now carbon credits.

LINK has experience being a Bitcoin miner and has gained the skills and IP to be able to assist others. LINK’s revenues are coming in from their Bitcoin mining business and their electricity supply contracts. Given the demand growth from crypto mining and data centers it stands to reason that LINK will capture an increasing number of these energy/infrastructure supply contracts.

Link Global Technologies trades on a market cap of ~C$10 million. One to follow in the exciting space of crypto and data center infrastructure providers. Stay tuned.

You may have heard numerous companies around the world talking about setting net-zero carbon emissions goals, in fact over 1,500 companies have announced plans to be carbon net-zero by 2050 or sooner. But how will they get to net-zero? In the interim, the plan is to offset the carbon they put into the atmosphere by buying carbon credits. A carbon credit represents one tonne of carbon dioxide or the carbon dioxide equivalent of another greenhouse gas (defined by the amount of heat it traps in the atmosphere) that is prevented from entering into or being absorbed from the atmosphere. Carbon credits are anticipated to be integral to meet global net-zero goals, especially in hard-to-abate sectors such as oil, aviation, steel and cement.

No matter how you slice it, the carbon credit world is big now and destined to get a lot bigger. The estimated size of the compliance/regulated market was US$261 billion in 2020, a five-fold increase from 2017. The voluntary carbon market was a much more modest US$473 million in 2020, although UN Special Envoy for Climate Action, Mark Carney, the former Governor of the Bank of England, has said that the voluntary market “needs to be $50-100 billion per annum.” And that’s where Carbon Streaming Corporation (NEO: NETZ) comes to the rescue, so to speak. Carbon Streaming is a unique, ESG principled, investment vehicle offering investors exposure to carbon credits. Its stated business model is to focus on acquiring, managing and growing a high-quality, diversified portfolio of investments in projects and/or companies that generate or are actively involved with carbon credits. The Company invests capital through carbon credit streaming arrangements, with project developers and owners, to accelerate the creation of carbon offset projects by bringing capital to projects that might not otherwise be developed.

Carbon Streaming has been raising capital and signing up projects to build up an inventory of carbon credits. In fact, in July the Company was able to raise an impressive US$104.9 million based on the momentum they had been gaining over the first half of 2021. The latest information from the website shows the Company has a near term opportunity pipeline of 16 projects around the world totaling roughly US$200 million in investments. Longer term the deal pipeline is over US$700 million and the best part is, the target IRR for these projects is greater than 15%.

Source

The value proposition at Carbon Streaming is three fold:

1. Enter into streaming agreements with individuals, companies, and governments to stream carbon credits from their asset or property that can be sold in either the voluntary or in the compliance markets;
2. Purchase carbon credits in the voluntary and compliance markets for long-term price appreciation with selective trading as opportunities arise; and
3. Invest in or acquire companies, assets or properties involved in the origination, generation, monitoring or management of carbon credits (in other words M&A).

Strategy #1 is pretty straight forward, you simply sell your earned carbon credits to whatever market is willing to pay the most. Strategy #3 is probably similar to almost every publicly traded company on the planet. However, strategy #2 intrigues me the most from an upside potential. Having spent plenty of time in the trenches of commodity trading, I know that being long a commodity that is in demand can be very lucrative. If you are of the opinion that demand for carbon credits is potentially going to grow faster than supply, then having an enormous pipeline of carbon credits coming on stream (targeting 100 million per annum by 2025), can be a very good thing. A modest price swing can create huge leverage. Just look at natural gas prices over the last 4 months as an example for a much more than modest price swing.

The carbon emission contract that trades on the Intercontinental Exchange (ICE) known as EUAs (European Union Allowance) has a 52 week trading range of €23 to just under €66 on a per tonne of CO2 equivalent basis. If you have an inventory of 100 million of annual credits being generated each year, imagine if you keep 5% to float with the spot price (preferably with a floor in place to assure breakeven). A $5 move could add $25 million to your top line. That’s why I think Carbon Streaming could be in the right place at the right time, depending on how they manage their “selective trading”.

Upon the exercise of the special warrants issued to raise the above noted US$105 million, the Company will have roughly 231 million shares outstanding. Based on yesterday’s close of $2.38 that puts the market cap at $550 million with approximately $141 million (US$112) in cash at the end of August. Back of the envelope math suggests that with 20 million in carbon credits by year end, that could generate roughly $1.7 billion (US$1.36 billion) in top line revenue based on yesterday’s EUA close of €59. I don’t know what carbon price assumption Carbon Streaming is using to calculate their 15%+ IRR but it might be worth digging a little deeper to find out.

Environmental, Social, and Governance (“ESG”) investing has become a key theme this decade as companies and governments face greater scrutiny on their behavior by investors. One key part of ESG investing is the environment, and in particular, carbon credit trading.

A ‘carbon credit‘ (also called ‘carbon offset’ or ’emission credit/offset’) is a term for any tradable certificate or permit representing “the right to emit one tonne of carbon dioxide or the equivalent amount of a different greenhouse gas”. Essentially corporations, governments and individuals purchase carbon credits to offset their emissions from other companies that have earned credits from the government for reducing CO2 emissions. One well-known example of carbon credit trading occurred with Fiat Chrysler purchasing about US$2.4 billion worth of carbon credits from EV manufacturer Tesla from 2019 through 2021.

It is quite clear that carbon credit trading is rapidly growing to be a large industry in itself. Over 1,500 companies have announced plans to be “net–zero” by 2050 or sooner. Carbon credits are anticipated to be integral to meet these goals, especially in hard to abate sectors such as oil, aviation, steel and cement. Even better is that retail investors can now invest in a carbon credit streaming business.

Today’s company is a listed company that offers a way for investors to invest into the growth of the carbon credit market. They act like an investment vehicle purchasing carbon credit revenue streams in return for an upfront payment. If the value of the carbon credits goes up or can be sold later at a profit then the stream becomes more valuable, thereby potentially boosting the value of the carbon streaming company. Revenues and profits will also depend on the quality and return on investment (“ROI”) of the streaming deals that are made.

How carbon emission trading works and the market size (US$261 billion in 2020) currently dominated by Europe

Source: Carbon Streaming Corporation investor presentation

Carbon Streaming Corporation (NEO: NETZ) (“Carbon Streaming”) is an ESG principled investment vehicle offering investors exposure to carbon credits. Carbon Streaming is among the first publicly traded carbon offset investment companies on any exchange in the world. Carbon Streaming listed on Canada’s NEO exchange on July 26, 2021, the Frankfurt Stock Exchange on July 30, 2021 and intends to list on a U.S. stock exchange, such as NASDAQ or the New York Stock Exchange, prior to the end of the year.

Carbon Streaming’s business model is to focus on acquiring, managing and growing a high-quality and diversified portfolio of investments in projects/companies that generate or are actively involved, directly or indirectly, with carbon credits.

The Company states: “Carbon Streaming is actively pursuing streaming arrangements with individuals, companies and governments to stream carbon credits from their assets or properties. We intend to provide investors with a diversified portfolio of carbon credit streams for long-term appreciation without the operational risk. We intend to participate in both the voluntary and compliance carbon markets, and also may make investments related to carbon credits.”

Carbon Streaming has sourced a potential deal pipeline of over US$585 million with its near–term pipeline valued at approximately US$165 million at target IRRs of 15%+.

Carbon Streaming Corporation near term opportunity pipeline

Source: Carbon Streaming Corporation investor presentation

In recent news on August 3, 2021, Carbon Streaming announced a Carbon Credit Stream Agreement on the Rimba Raya Biodiversity Reserve (a 64,500-hectare peat forest in Central Kalimantan, Indonesia) and Strategic Partnership with Infinite-EARTH Founders. The Rimba Raya Project, for which InfiniteEARTH has exclusive carbon and marketing rights, is expected to create over 70 million credits over its remaining 20-year crediting period (approximately 3.5 million carbon credits per annum).

Carbon Streaming has now closed the above agreement paying an upfront cash investment of US$26.3 million consisting of US$22.3 million for the Carbon Stream with InfiniteEARTH and US$4.0 million for the strategic alliance agreement with the Founders (for consulting services, carbon project advisory, carbon credit marketing and sales). In return Carbon Streaming will receive:

“InfiniteEARTH will deliver 100% of the carbon credits created by the Rimba Raya Project, expected to be 70 million credits over the next 20 years, less up to 635,000 carbon credits per annum which are already committed to previous buyers. For the first four years, the amounts delivered under the Carbon Stream include 1,000,000 carbon credits per annum at a pre-agreed gross sale price of US$8.50……”

InfiniteEARTH is a Hong Kong-based project development company that develops and manages conservation land banks and provides environmental offsets and corporate social responsibility (CSR) solutions to companies across the globe. The full details of the deal can be viewed here.

Governments have pledged to reduce carbon emissions but as shown on the graph there is still a long way to go

Source: Carbon Streaming Corporation investor presentation

Closing remarks

Carbon credits is already a large business in Europe and it is likely to accelerate globally as governments get tougher on CO2 emissions and investors demand strong ESG efforts from companies. For investors that want to focus on ESG or simply invest money towards supporting carbon credits and hence the environment, then consider Carbon Streaming Corporation.

With the current focus on climate change and the need to reduce our global carbon footprint it would probably make sense to have an economic way for nations and companies to commoditize carbon in order to better track and deal with this problem. Well there is and it may come as a surprise to learn that there has been a fungible carbon emissions trading market since 2005 – the EU Emissions Trading System. Also known as EUAs (European Union Allowance), similar to other commodities, EUAs trade on the Intercontinental Exchange (ICE). The carbon emission contract trades in Euro on a per tonne of CO2 equivalent basis, with yesterday’s closing price at just over €52 and a 52 week range of €23 to just under €57.

There are many companies around the world, including financial institutions, utilities, fossil fuel companies, and others, that actually have dedicated carbon emission trading desks transacting things like EUAs and have done so for a long time. However, today we are going to look at a different perspective on this market, one would suggest a natural evolution for a commodity, a streaming company that gives investors exposure to the world of EUAs. Carbon Streaming Corp. (OTC: MXVDF) is a unique ESG principled investment vehicle offering investors exposure to carbon credits, a key instrument used by both governments and corporations to achieve their carbon neutral and net-zero climate goals. The Company intends to invest capital through carbon credit streaming arrangements with project developers and owners to accelerate the creation of carbon offset projects by bringing capital to projects that might not otherwise be developed.

You may have heard several companies around the world talking about setting net-zero emissions goals, in fact over 1,500 companies have announced plans to be net-zero by 2050 or sooner. Obviously, that is going to prove to be very difficult for those involved in resource extraction, manufacturing and even bitcoin mining that require more energy than is presently available on a renewable basis. But how will they get to net-zero? In the interim the plan is to offset the carbon they put into the atmosphere by buying offsets like EUAs. This can become a pretty complex circle of (carbon) life so we’ll try to keep it simple here. You can break down carbon markets into two basic categories: compliance or regulated, where markets for carbon credits are created by the need to comply with a regulatory act; and voluntary, where corporations, governments and even individuals volunteer to offset their emissions by purchasing carbon credits.

No matter how you slice it, the carbon credit world is big now and destined to get a lot bigger. The estimated size for the compliance/regulated market was US$261 billion in 2020, a five-fold increase from 2017. The voluntary carbon market was a much more modest $320 million in 2019, although UN Special Envoy for Climate Action Mark Carney has said the voluntary market “needs to be a $50-100 billion per annum.” And that’s why Carbon Streaming has been raising capital and signing up projects to build up an inventory of carbon credits.

Since the start of 2021, Carbon Streaming has raised $46 million including $32.5 million in March and another $11.6 million in May. But the Company is not just sitting on that cash having recently announced commitments to invest in the MarVivo Blue Carbon Conservation Project in Magdalena Bay in Baja California Sur, Mexico, an exclusive term sheet to develop two carbon credit projects within the Bonobo Peace Forest located in the Democratic Republic of Congo and a strategic joint-venture partnership with an established First Nations business in British Columbia to source and finance investment opportunities in collaboration with First Nations and develop projects within their territories to combat climate change through the reduction of greenhouse gas emissions. In all, Carbon Streaming has sourced a potential deal pipeline of over US$500 million with its near-term pipeline valued at approximately US$170 million at target IRRs of 15%+.

Source: Corporate Presentation

So unless you happen to have a working model of a cold fusion generator that you’ve been keeping from the world, carbon credits are going to be with us for a while and likely to become even more commoditized than they already are. Carbon Streaming represents one of the few opportunities to participate in this space in today’s market without having to set up your futures trading account and transacting EUAs.