Don’t be misled by the low carbon prices on our dashboard over the last few months…
Carbon has drawn a LOT of capital over the last 18 months.
Recently one of the largest carbon exchanges – Xpansiv – announced a major investment from Blackstone Group. To the tune of $400 million. They also raised an additional $125M with participation from Bank of America and Goldman Sachs.
What Xpansiv does is closely watched by a tight-knit industry group. Because the majority of voluntary carbon market credits go through their platform.
They see what’s moving, how and at what price.
Which is why a lot of companies want to team up with them and get on their rolodex, fast.
So, when the Executive Chairman of Xpansiv (still a private company) becomes a shareholder and Director of a small, private carbon company…
You want to pay attention!
DevvStream (DESG:NEO) is NOW LIVE
DevvStream (DESG: NEO) is one of the best ways to capitalize on two of the hottest sectors of the moment…
Blockchain Technology and Carbon.
If these sound like two completely different things, don’t worry.
- One’s a global market estimated to be worth $5.92 billion already…
- And the other is already over $820B in 2021 and forecasted to be worth $1.9 trillion by 2040.
Combine them and you have something that could be very interesting.
People are taking notice of the carbon markets, including big-time investors like Google, HSBC and Meta.
The company we’re talking about, DevvStream, runs on a solid business model that has delivered 10x returns in other sectors, such as precious metals mining…
DevvStream (DESG:NEO) has an incredible business model that follows in the footsteps of the early days of many successful precious metal royalty and streaming companies.
These companies grew to an 8, 9, and 10-figure market cap over the years.
We have been following the story for over a year now, and when we met with the company in early January and couldn’t believe the progress they had made since our last update.
- The company achieved revenue in the 3rd quarter of 2022
- They have 9 signed LOIs & Termsheets and 3 contracts already with 4 more in the works.
- It intends to retain 90-100% of the carbon credits generated by DevvStream investments.
- Target paybacks of 2 years for each investment project with a 10+ year stream
The IRR numbers they’ve published are truly eye-popping for some of their projects. Take a look at their near-term pipeline…
DevvStream Tech-Based Projects
DESG is not your typical nature play or decarbonization stock.
They’re attracting partners in the massive technology and energy sectors.
Project Profile: LED Retrofit
- DevvStream has an opportunity to replace old and inefficient 100W light bulbs with 7W LED bulbs in Sub-Sahara Africa.
It costs $900,000 for 100k bulbs, and they’re eyeing a project term of 10 years. All told this could deliver 30,000 carbon credits yearly for Devvstream, per container. With multiple countries in Africa wanting to participate, there is a big demand for these LED bulbs.
At the prices the company believes it can sell, they forecast an IR of 60-90% on this deal.
Project Profile: Plugging Abandoned and Orphaned Oil Wells in North America
It’s no secret that environmentalists hate oil wells. And legions of groups spend big money to stop them.
So DevvStream is going to help oil companies and environmentalists at the same time, by plugging abandoned oil wells.
There is an opportunity to eliminate methane leakage from abandoned oil wells. Methane, if you don’t know, is terrible for emissions.
Some estimates have it as 32x more potent at trapping heat than CO2 when it comes to gas in the atmosphere. This means that every ton of avoided methane can generate 32 carbon credits.
So, how many oil wells are in this shape, you ask?
There are about 4 million abandoned and orphaned oil wells in the USA alone. And a further 370,000 in Canada.
But get this, 96% of leakage comes from about 10% of the wells. The top 10% could generate 2,000 credits per year or more.
DevvStream has invested US$1.25M into a company with an advanced and patented nanopolymer sealant that is 10x more effective at plugging wells than current solutions. This investment gives DevvStream worldwide exclusivity and pays for the first 24 wells.
And this is no science project, three pilot wells have already been successfully plugged with this new technology. The company is also in talks with an oil and gas company to get access to approximately 800 abandoned oil wells.
All told, this project could bring in 125,000 carbon credits per year just from the first initial set of wells. And the first credits could come in 2023.
But Wait, There’s More…
This is only 2 of the main projects DevvStream has running.
One of their emissions reduction projects involves improving road construction technologies and methods. Sounds archaic.
But guess what, road construction and maintenance is something that every city needs, and DevvStream is already talking to several cities.
As a result, DevvStream estimates the credits generated to be up to 5 million carbon credits every year… for 20 years.
And this is an inherent advantage of most of DevvStream’s technology-based projects. Once proven, they can be replicated over and over again.
DevvStream’s pipeline of projects is spread around the globe, reducing geopolitical risk and regulations from any 1 area. Much like a standard investment portfolio in different sectors.
This is a high-risk, high-reward, high-margin business model ready to leverage and scale with the incredible growth trajectory of the voluntary and compliance carbon market.
DevvStream is now publicly trading – and we imagine things will start happening quickly in 2023.
We’re following the story, and we’ll bring you all the important developments.
Disclosure: Owners, members, directors and employees of carboncredits.com have/may have stock or option position in any of the companies mentioned: DESG
Carboncredits.com receives compensation for this publication and has a business relationship with any company whose stock(s) is/are mentioned in this article
Additional disclosure: This communication serves the sole purpose of adding value to the research process and is for information only. Please do your own due diligence. Every investment in securities mentioned in publications of carboncredits.com involve risks which could lead to a total loss of the invested capital.