DGB Group N.V. ("DGB" or "the Group") (Euronext: DGB: NL0009169515), a leading developer of carbon projects and ecosystem restoration initiatives, announces the signing of a verified emission reduction purchase agreement (“VERPA”) with the Green Carbon Fund (the “Fund"). The Fund has committed €2.5 million to acquire 125,000 carbon units from DGB's flagship Hongera Reforestation Project in Kenya. This transaction represents the largest single order in DGB’s history.
Key highlights
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The offtake agreement: The Green Carbon Fund will purchase 125,000 verified carbon units (also known as carbon credits) from the Hongera Reforestation Project. The units will be distributed over a five-year period, from 2030 to 2034, equating to an annual offset of 25,000 tonnes of CO2.
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Pricing structure: The Green Carbon Fund has secured a rate of €20 per tonne of CO2, amounting to a total purchase price of €2.5 million. Under the terms of the agreement, 50% of the payment will be made at the closing of the transaction, with the remaining 50% upon delivery of the units. DGB provided a discount from its standard rate for premium units from its high-quality afforestation and reforestation (AR) carbon removal projects, in recognition of the upfront payment of €1.25 million.
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Impact of funding: Proceeds from the agreement will enable DGB to expand its reforestation efforts, support biodiversity restoration, and deliver meaningful benefits to local communities. This funding will allow the project to scale to 10,800 hectares planted, significantly amplifying its environmental impact.
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Due diligence and closing timeline: The Green Carbon Fund has successfully completed its technical due diligence on the Hongera Reforestation Project. Both parties anticipate finalising the legal processes and closing the transaction within the next 12 weeks, marking a key milestone in the partnership’s progression.
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Future offtake opportunities: The Green Carbon Fund's commitment highlights a shared vision for long-term environmental impact and the delivery of high-quality carbon units. This agreement follows DGB’s CEO joining the board of VanderStyn Asset Management, the Fund’s manager. Both organisations are actively exploring further offtake opportunities, with a focus on expanding investment in high-quality, nature-based carbon projects.
John Collins, the Fund Manager at the Green Carbon Fund, remarked: "We see this investment as a strategic opportunity to secure high-quality carbon credits at a competitive price. With the global shortage of afforestation and reforestation projects involving smallholder farmers, we expect the value of these credits to rise significantly in the coming years. The Hongera Reforestation Project offers the ideal balance of being under development, yet advanced enough to provide the certainty we need. This is the right time to invest, and we’re confident in the long-term impact and financial returns this project will deliver to our investors.”
Niels van Houdt, the Finance Director at DGB, commented:
"This agreement with the Green Carbon Fund is a strong endorsement of our business model and project pipeline. We currently have an additional 5 million tonnes of carbon units available for sale from the Hongera Reforestation Project, with a total of 25.5 million tonnes across all our projects. This deal reflects the rising demand for high-quality units, and we’re excited to scale our operations further to meet it.”
About the project
The Hongera Reforestation Project aims to restore 27,800 hectares of degraded land in Kenya by planting 10.7 million trees. This initiative not only sequesters carbon but also supports local communities by creating sustainable jobs and improving biodiversity. The project collaborates with 11,000 small-scale farmers and is expected to capture 13.6 million tonnes of CO2 throughout its lifetime.
More information about the project:
Contact for press enquiries
For more information about DGB, please contact:
DGB GROUP NV
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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.
