Base Carbon Inc., operating through its wholly-owned subsidiary, Base Carbon Capital Partners Corp., has received approximately $11.2 million from the sale of carbon credits from its household device and cookstove projects in Vietnam and Rwanda.
With the recent payment included, Base Carbon has garnered a total of around $30.0 million from carbon credits associated with its Vietnam project. The Company expects to receive an additional $6.3 million in future payments from this project’s off-take agreement. The initial capital investment in the project has been fully recovered. Beyond the first 7.4 million carbon credits sold, Base Carbon and its shareholders retain the right, though not the obligation, to acquire all additional carbon credits produced in the project’s remaining life, estimated at approximately 25 million credits in “phase 2,” at a set price as detailed in the Company’s first quarter management report.
Also, Base Carbon has completed an initial market sale of 20,000 carbon credits from its Rwanda project, representing less than 3% of the credits issued. This sale served as a market-based “test-trade” to evaluate commercial capabilities. The Company continues to hold about 700,000 carbon credits with Verra’s “Article 6 Authorized” designation. By maintaining a short-term inventory, Base Carbon aims to benefit from potential price increases and liquidity once the credits are eligible for programs like CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation).