Carbon Streaming partnered with Will Solutions for a carbon credits deal to ramp up its Sustainable Community Projects in Quebec and Ontario, Canada.
Carbon Streaming is an ESG principled firm that offers investors exposure to carbon credits, a key tool to achieving carbon neutral and net zero climate goals.
Will Solutions is an established operator of carbon projects.
Carbon Streaming Founder and CEO Justin Cochrane remarked on the agreement:
“We are delighted to announce our first Canadian carbon stream with Will Solutions… The Sustainable Community Projects are an excellent addition to our portfolio and highlight what Canadians can do to reduce emissions…”
The Projects enroll and reward members for greenhouse gas emission reductions through waste diversion, conversion, and energy efficiency initiatives. There’s also a plan to include reductions in the transport sector.
The Carbon Credit Streaming Deal
Carbon Streaming investment in Will Solutions gives the latter more funding to work with thousands more Canadian businesses. It will also allow the operator to enhance its capacity to securely and efficiently process billions of transactions.
The projects will reduce over 100 million tons of CO2 equivalent emissions. This reduction will produce also 100 million Verified Carbon Units (VCUs or carbon credits) over the next 10 years. Verra will verify and register the credits.
Over the term of the agreement, Carbon Streaming will receive 50% of the VCUs from the Projects which is up to 44.1 million carbon credits. The company will also have the option to renew the partnership for another 10 years.
Carbon Streaming is also to make an upfront deposit of up to US$20 million. The first installment of US$4 million was paid on closing. The additional payments (US$16 million) will be paid during projects’ implementation and enrollment milestones.
Will Solutions can expect to deliver about 425,000 to 525,000 VCUs in the latter half of 2023. The project operator can then scale it up to around 10 million carbon credits in 2030.
Will Solutions operates one of the biggest grouped projects in Canada. The operator has also been successful in generating carbon credits since 2010.
Buyers of those VCUs vary, including big corporations in Canada, major financial firms, pension funds, public agencies, industrials and food companies.
The carbon credit pricing sold by Will Solutions ranged from 2x to 5x the GEO spot price for the last 3 months. And Carbon Streaming expects that carbon credits through the deal will continue to attract premium pricing versus the GEO price.
That’s due to the good location of the Projects. Also, the big chunk of emission reductions would be from their methane avoidance, which is about 70%.
Methane is the 2nd most abundant GHG, with more than 80x the global warming potential of CO2. Hence, reducing methane will also help limit near-term temperature rise.
The proceeds from the carbon credit deal will be for scaling up the Projects by adding to Will Solutions’ sales and marketing team. In turn, this will support new member enrollment and improve automation, monitoring and reporting.