Carbon Streaming Corp (NEO: NETZ) has closed on its latest carbon credit stream, which will see it support safe water solutions and fuel efficient cookstoves within Africa. Previously announced in mid-May of this year, the company has closed the arrangement with Community Carbon and UpEnergy.
The latest stream consists of a US$20 million carbon credit stream that will support energy efficiency within Malawi, Tanzania, Zambia, Uganda and Mozambique. A total of 50 million tonnes of CO2 equivalent are expected to be reduced over the fifteen year lifespan of the project, which equates to roughly 3.3 million tonnes annually, for which the company will receive an equal number of carbon credits.
Payback on the project is currently estimated to take less than five years based on current credit pricing.
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The project is to support three cookstove projects and four safe water projects in the region, with roll-out of the program already underway. A total of 3.5 million cookstoves and water purification devices are expected to be provided under the program, with carbon credits to begin being generated next year.
The program will also see an impact fund created for the region, which will be support by Community Carbon as well as Carbon Streaming. The initiative aims to support education and empowerment of women and girls, with the first projects to begin in Q3 2022.
“We are pleased to close this remarkable stream investment with Community Carbon and incorporate these critical energy efficiency projects into Carbon Streaming’s diverse portfolio. Reducing energy poverty for millions in sub-Saharan Africa while reducing greenhouse gas emissions exemplifies our unique investment approach to deliver impacts beyond carbon to communities around the world,” commented CEO Justin Cochrane.
An initial advance of US$375,000 was made in connection with the impact fund, while the company made a deposit payment of US$6.5 million for the credit program as a whole. Additional payments of US$13.5 million will be made as the project develops and certain milestones are met.
Carbon Streaming last traded at $5.08 on the Neo.
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