Verde and Ergon partner to commercialise carbon-sequestering road materials

Verde Resources Inc. has signed a 10-year definitive licence agreement between its subsidiary, Verde Renewables Inc., and Ergon Asphalt & Emulsions, Inc., one of North America’s largest asphalt marketers. The deal establishes a long-term partnership to commercialise Verde’s BioAsphalt™ — a carbon-sequestering road surfacing material — across the United States, Mexico and Canada. The agreement includes an option to extend for a further 10 years.

Under the terms of the partnership, Verde will license its proprietary technologies to Ergon for manufacturing, marketing and distribution of sustainable road construction products. Ergon will also gain the right to use Verde’s trademarks and access technical services to ensure accurate measurement and verification of sequestered carbon dioxide.

The agreement builds on an earlier Memorandum of Understanding and aims to advance the use of low-carbon road construction technologies that integrate Verde’s emulsifying agent with Ergon’s asphalt, reclaimed asphalt pavement (RAP) and biochar. The companies said the technology can convert roads into carbon sinks, reducing emissions across the construction value chain.

In addition to the licensing deal, Ergon has signed a term sheet for a $2 million investment in Verde, expected to close in October 2025.

“Our milestone commercial collaboration with industry leader Ergon marks a major achievement in our mission to bring innovative solutions to market and accelerate decarbonisation across emission-intensive infrastructure,” said Jack Wong, CEO of Verde Resources. “Together with Ergon, we will deliver transformative, common-sense solutions that will redefine the roads of the future for the benefit of both the environment and the economy.”

Patrick Nation, President of Ergon Asphalt & Emulsions, said: “Our agreement with Verde strengthens Ergon’s ability to deliver sustainable, next-generation technologies to the road construction industry. We are excited to integrate Verde’s solutions and work to accelerate the adoption and commercialisation of the end product over the next year, with the goal of enhancing how roads are built in a sustainable way without compromising quality or reliability.”

Verde’s BioAsphalt™ is designed to be produced without burners and can be laid year-round without heat or solvents, reducing greenhouse gas emissions and extending paving seasons. The material is also odourless, improving safety for workers.

Earlier this year, BioAsphalt™ became the first asphalt product to generate verified carbon removal credits, certified through Puro.earth and purchased by a major global financial institution. Verde plans to share 40% of its future carbon removal credits with Ergon to link commercial success with environmental impact.

The company’s carbon-sequestering technologies have received early validation from the U.S. National Center for Asphalt Technology. With the North American asphalt market valued at over $175 billion, the alliance positions Verde and Ergon to scale low-carbon road solutions and reshape the region’s infrastructure landscape.

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