DGB Group N.V. (“DGB” or “the Group”) (Euronext: DGB: NL000916951), a leading carbon project developer and ecosystem restoration company, in partnership with Akili Group, proudly announces the successful verification of its Hongera Energy Efficient Cookstoves Project (Project ID 12033). The project, developed under the latest Gold Standard methodology—Technologies and Practices to Displace Decentralized Thermal Energy Consumption—has now achieved verification for the 2023–2024 monitoring period, marking the issuance of its first batch out of a long series of carbon credits.
Key highlights
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Project scope: The Hongera Energy Efficient Cookstove Project is a transformative initiative providing 150,000 energy-efficient cookstoves to rural Kenyan communities. It significantly reduces firewood consumption, improves indoor air quality, and supports forest conservation. With nearly 70,000 cookstoves already in the field, DGB is producing 4,000 stoves per month to continue to drive greater impact.
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Issued units: Over its project lifetime, the project is expected to generate approximately 2.5 million carbon units (carbon credits). The first issuance comprises 49,000 credits, with production ramping up to deliver more annual issuances in 2025 and beyond. Issuances for 2025 are projected at 145,000 carbon units and for 2026 at 220,000 units.
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Unit sales: In July 2022, DGB secured upfront sales for 507,720 carbon units (around 30% of the project's expected total) for €1.7 million, providing a significant discount to the buyer in exchange for early-stage units. With the official issuance complete and the project’s benefits now proven, DGB expects the remaining 1,9 million carbon units to command significantly higher market prices.
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Valuation and risk: As of 30 June 2024, the total value of the project pipeline reached €29.55 million (+24.8% YoY growth). The Group's total asset value rose to €34.93 million (+19.7% YoY growth), bringing DGB’s net asset value (NAV or ‘book value’) per share to €2.31. The successful verification of the project lowers its risk parameters as it is now issuing carbon units, raising the project’s estimated total asset value—adjusted for risk—from €5.5 million to €7.9 million, increasing the asset value per share by €0.21.
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Letter of Authorisation process: Kenya has established its national regulatory framework under Article 6.2 of the Paris Agreement, enabling carbon projects to be formally authorised for international trading via a Letter of Authorisation (“LoA”). This LoA is an official government approval confirming the project meets national and international requirements. DGB is now preparing to secure a LoA for its Hongera Energy Efficient Cookstove Project. This will boost the project’s appeal to buyers and support higher carbon unit prices, further solidifying its impact and marketability.
Thomas Donia (Technical Director DGB): “This verification and issuance underscore that DGB delivers on its objectives. It demonstrates our technical expertise and our ability to execute at every stage—from planning and designing projects to implementation on the ground—securing certification and generating high-quality carbon credits. It’s a testament to our commitment and capability to produce real, verifiable environmental impact.”
Niels van Houdt (Finance Director DGB): “We are proud to announce that the Hongera project is now generating revenue. With this first issuance, we have completed the full production cycle, turning potential into realised revenue. Like all our projects, until now it has been valued on our balance sheet with a risk-adjusted discount of over 50% to account for development and issuance risks. This marks the start of the revenue streams from DGB's own projects and is the result of years of hard work, careful development, and investment. This milestone proves that while the path to issuance is demanding, it delivers strong financial outcomes for the Group and our stakeholders.”
Haron Wachira (Project Director Hongera): “This project has transformed the lives of so many local communities. Families are saving time and resources previously spent on collecting firewood, while also benefiting from improved indoor air quality. It’s inspiring to see how such an initiative can have such a positive ripple effect across households and communities.”
Project issuance profile
Total expected credits per year: Hongera Energy Efficient Cookstove Project
Total expected credits per year: full DGB project portfolio (per 4-12-2024)
Since initiating the development of its first project in 2020, DGB has expanded to oversee a portfolio of large-scale projects under management and in operation. Given the two to six-year design, development, and financing period required before projects begin generating carbon units, the issuance of initial carbon units from its own pipeline marks a significant milestone. DGB is now officially in the revenue-generating phase, highlighting the value of its entire pipeline and expected future issuances.
For further details on our active projects and development pipeline, please refer to our Projects page and Pipeline page.
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Contact for press enquiries
For more information about DGB's initiatives, please contact:
DGB GROUP NV
press@green.earth
+31320788118
Or visit our website: https://www.green.earth/
Disclaimer
This press release does not contain an (invitation to make an) offer to buy or sell or otherwise acquire or subscribe to shares in DGB and is not an advice or recommendation to take or refrain from taking any action. This press release contains statements that could be construed as forward-looking statements, including about the financial position of DGB, the results it achieved and the business(es) it runs. Forward-looking statements are all statements that do not relate to historical facts. These statements are based on information currently available and forecasts and estimates made by DGB’s management. Although DGB believes that these statements are based on reasonable assumptions, it cannot guarantee that the ultimate results will not differ materially from those statements that could be construed as forward-looking statements. Factors that may lead to or contribute to differences in current expectations include, but are not limited to: developments in legislation, technology, tax, regulation, stock market price fluctuations, legal proceedings, regulatory investigations, competitive relationships and general economic conditions. These and other factors, risks and uncertainties that may affect any forward-looking statement or the actual results of DGB are discussed in the annual report. The forward-looking statements in this document speak only as of the date of this document. Subject to any legal obligation, DGB assumes no obligation or responsibility to update the forward-looking statements contained in this document, whether related to new information, future events or otherwise. The provision of DGB’s services and products is subject to its General Terms and Conditions.
