Dutch Green Business Group N.V. (“DGB” or “the Group”) (Euronext: DGB: NL0009169515), a leading carbon project developer and ecosystem restoration company, proudly announces the completion of the Project Implementation, Funding and Verified Emission Reduction Purchase Agreement selling approximately 507,720 carbon credits to a renowned Buyer (the ¨Buyer¨) to further develop its Hongera Energy Efficient Cookstove Project in Kenya (the “Project”).
On 22 March 2022, the Project entered the development phase and on 13 July 2022, the Buyer committed to funding 100% of all Capital Expenditures by buying 30% of the total expected carbon credits (approximately 507,720 tCO2e) against upfront payment. DGB and the Buyer now completed the Project Implementation, Funding and Verified Emission Reduction Purchase Agreement and the Group receives its first upfront payment of €500,000.
The Project is expected to originate a total amount of approximately 1.7 million credits over iits project lifetime and can be extended after the initial crediting period.
The Buyer plans to retire its share of the credits once verified, claiming it against its organization's carbon footprint with the carbon credits taken out of circulation to ensure they can only be claimed once.
The Buyer shall pay a total of €1.7 million upon the following four milestones:
- €500,000 upon signature of the Project Implementation, Funding and Verified Emission Reduction Purchase Agreement today;
- €600,000 upon completion of a draft PDD and completion of the manufacturing process of the first cookstove;
- €150,000 upon completion of the distribution to all end-users of the first 50,000 cookstoves; and
- €450,000 shall be paid on submission to the Independent Auditor of the PDD, in its final form.
DGB expects to sell the remaining approximately 1.2 million verified carbon credits on the open, voluntary carbon credit market after the first issuance of the credits starts. The Buyer has the right of first refusal on all credits originating from the Project. DGB will offer credits to the Buyer at the following prices::
- Vintage Year 2023 – $8.50 per credit;
- Vintage Year 2024 – $9.00 per credit;
- Vintage Year 2025 – $9.00 per credit;
- Vintage Year 2026 – $9.00 per credit;
- Vintage Year 2027 – $9.00 per credit.
The current average index price for Nature-Based Carbon Offset Credit in the voluntary carbon markets is $9,54. If the Buyer buys all additional 1.2 million carbon credits, the sales for DGB under this agreement could add up to an additional $10.7 million in the coming 6 years.
The Project involves the manufacturing and distribution of 150,000 energy-efficient cookstoves and is designed as a project under the Gold Standard methodology ''Technologies and Practices to Displace Decentralized Thermal Energy Consumption''. Efficient cookstoves projects promote the effective fight against forest degradation and biodiversity loss. Cookstoves projects have a significant impact, as efficient cookstoves enable households to reduce from 30 to 90% of the CO2 emissions resulting from traditional open fire cooking. DGB is pleased to be able to contribute to this.
Additionally, cookstove projects provide diversity in the project pipeline of the Group and have a reduced risk profile. DGB currently manages the development of five projects with a total expected carbon credit pipeline of over 16.9 million tons of carbon credits, making DGB the most prominent project developer of carbon credits in The Netherlands.
In Q2, DGB invited investors and corporate buyers in a tender process on its complete project pipeline. DGB has received more investment proposals for its other projects and expects it can close transactions to finance its entire project pipeline going forward.
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About DGB:
Dutch Green Business Group NV is a public company that is traded on the main Dutch stock exchange Euronext Amsterdam under the ticker symbol AEX:DGB and ISIN code NL0009169515. DGB is a project developer of high-quality large-scale carbon and biodiversity projects accredited by third parties, focusing on making nature flourish and prosper, by helping governments and companies achieve net-zero through ecosystem restoration. DGB's vision is to be a leading high-impact investor in sustainably managed nature-based solutions by providing a competitive real return on investment for shareholders coupled with high societal impact. www.dgb.earth
Disclaimer:
This press release contains no (invitation to make an) offer to buy or sell or otherwise acquire or subscribe for shares in DGB Group NV and is not an advice or recommendation as to whether action should be taken. This press release contains statements that may be interpreted as forward-looking statements, inter alia relating to the financial position of the DGB Group, the results achieved, and the company(ies) it operates. Forward-looking statements are all statements that do not relate to historical facts. These statements are based on information currently available and on forecasts and estimates made by the management of the DGB Group. Although the DGB Group believes that these statements are based on reasonable assumptions, it cannot guarantee that the ultimate results will not differ materially from those statements that can be construed as forward-looking statements. Factors that can lead to, or contribute to, differences in current expectations include developments in legislation, technology, taxation, regulation, fluctuations in stock prices, legal proceedings, regulatory investigations, competitive conditions, and general economic conditions. These and other factors, risks, and uncertainties that may affect forward-looking statements or the actual results of DGB Group are discussed in the Annual Report. The forward-looking statements in this document apply only as of the date of this document. Subject to any legal obligation to do so, the DGB Group accepts no obligation or responsibility to update the forward-looking statements contained in this document, whether they relate to new information, future events or otherwise.
