BluSky Carbon Announces Partnership with Carbonpave

Rhea-AI Summary

BluSky Carbon (OTCQB: BSKCF) has entered into a strategic partnership with Carbonpave USA to commercialize innovative carbon-based construction technology across North America. The partnership involves creating a joint venture where BluSky will own 70% and Carbonpave 30%, contingent on BluSky securing $4.75 million USD in funding by February 18th, 2026.

Carbonpave's proprietary cold asphalt technology, which has already been used in over 1,000 km of roads globally, can reduce construction costs by up to 40% and allows paving in temperatures as low as -8°C. The JV will establish its initial production facility at BluSky's AR1 facility in Arkansas, utilizing BluSky's Vulcan pyrolysis units for production and R&D purposes.

Positive

• Potential 40% cost reduction in road construction and resurfacing
• Exclusive commercial rights for Carbonpave technology across North America
• Technology already proven with 1,000 km of roads built globally
• Majority ownership (70%) for BluSky in the joint venture
• Technology enables paving in cold temperatures, extending the construction season

Negative

• Partnership contingent on securing $4.75M USD funding by February 2026
• Ownership dilution possible with new share issuance
• Technology still requires certifications from various state Departments of Transportation
• Royalty fees required to be paid to Carbonpave

Companies execute preliminary strategic partnership agreement to deploy biochar and engineered carbon construction technology in North America

Old Saybrook, Connecticut and Vancouver, British Columbia--(Newsfile Corp. - September 4, 2025) - BluSky Carbon Inc. (CSE: BSKY) (OTCQB: BSKCF) (FSE: QE4) (WKN: A401NM) ("BluSky" or the "Company"), an innovative entry into the carbon removal clean technology sector, is pleased to announce that it has executed a preliminary strategic partnership agreement with Carbonpave USA, LLC ("Carbonpave") on September 3rd, 2025, aimed at commercially deploying Carbonpave's proprietary technologies throughout North America.

Carbonpave is a technology-based company that develops and produces construction and industrial materials at scale - these materials use biochar and engineered carbon as a critical ingredient. According to the Carbonpave, their cold asphalt mix can reduce the cost of new road construction and resurfacing by up to 40%, allowing paving even in temperatures as low as -8ºC. Their cold asphalt technology has built over 1,000 km of roads globally and is already in use in the southern United States for private roads, parking lots, and state roads. The technology is currently undergoing further certifications from various state Departments of Transportation.

Under the agreement, BluSky is responsible for securing funding for an initial joint production facility. To this end, BluSky is engaging project financiers to invest $4.75 Million USD into the initial facility. Upon securing an initial financing commitment, BluSky and Carbonpave will incorporate a Joint Venture ("JV") with BluSky to own 70% and Carbonpave to own 30%. The JV will hold the exclusive commercial right to utilize Carbonpave's technologies across North America and will pay a small royalty fee to Carbonpave.

In the event of the issuance of new shares in the JV, both BluSky and Carbonpave will experience proportional dilution of their respective ownership interests. All intellectual property ("IP") contributed by each party to the JV will remain the sole property of the contributing party. However, any new IP developed by the JV during its operation will be exclusively owned by the JV.

The parties have agreed to cooperate on Carbonpave's existing customer and business development pipeline throughout North America. Additionally the parties have agreed to not compete throughout North America for sale of products produced by the JV.

The JV will build its initial production facility onsite at BluSky's AR1 facility in Arkansas. The JV will lease a Vulcan Heavy pyrolysis unit from BluSky. Additionally, the JV will purchase BluSky's Vulcan II unit for research and development purposes. BluSky will use additional Vulcan units to fulfill local agricultural biochar offtakes at the AR1 facility.

Carbonpave is led by Andre van Zyl. Mr. Van Zyl graduated in 1986 as a Chemical Engineer from the Vaal University of Technology in South Africa. He has substantial experience in process plant design and implementation for the steel, water treatment, mineral processing and mining industry in Africa, Asia, and South America. For the past 15 years he has focused substantially and has acquired specialized knowledge and skills in road surfacing technology, especially in the development, manufacturing, and installation of environmentally friendly emulsified cold road premix material for new urban and remote infrastructure development areas. During the last 5 years, he has been instrumental in the further development and re-design of low carbon footprint construction technology to suit the specific climatic, geotechnical and problematic soil conditions as viable and cost-effective infrastructure development.

Under the agreement, BluSky, with Carbonpave's assistance, has until February 18th, 2026 to secure the initial funding commitment. Once this has been secured, the JV will be finalized under a Joint Venture Agreement under the terms laid out above. With success in North America, BluSky and Carbonpave may expand the geographic scope of their JV or form additional joint ventures.

Will Hessert, CEO of BluSky Carbon, comments, "Carbonpave cold asphalt lets companies pave months more out of the year, reduce their material costs dramatically, and helps them win contracts by lowering their carbon footprint. I fully believe this technology will create demand for millions of tons of biochar across the United States and Canada and will transform how modern countries build infrastructure."

Video Footage: BluSky Carbonpave Announcement

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https://www.youtube.com/watch?v=Vrd5hdsSQUI

About BluSky Carbon Inc. (CSE: BSKY) (OTCQB: BSKCF) (FSE: QE4) (WKN: A401NM) BluSky is a renewable energy company that is in the business of putting Carbon back into the ground - where it belongs! The Company converts organic and industrial waste into biochar, renewable power and carbonate rocks, as well as the development and sale of carbon capture technology. BluSky's primary objectives are to (1) construct carbon removal equipment; (2) sell the biochar produced by the carbon removal equipment; and (3) sell carbon credits ‎generated from the production of biochar. The Company's business model is based on the growing need for carbon neutrality and demand to reduce CO2 emissions.

BluSky Carbon is publicly listed in Canada on the CSE with the trading symbol BSKY, on the OTCQB as BSKCF, and in Frankfurt, Germany (FWB) with the identifier QE4. BluSky's public filings and related documents are available on the Company's profile page on SEDAR+ at www.sedarplus.ca. For more information about the Company, please visit https://bluskycarbon.com/, watch our video, and sign up to receive news alerts or join us on social media at Facebook, X (formerly twitter), Instagram, or LinkedIn.

ON BEHALF OF THE COMPANY

William ("Will") Hessert
Chief Executive Officer

BluSky Carbon Inc.
35 Research Parkway,
Old Saybrook, CT, 06475
Tel. (860) 577-2080
Web, https://bluskycarbon.com/
Email. info@bluskycarbon.com

The CSE and Information Service Provider have not reviewed and do not accept responsibility for the accuracy or adequacy of this release.

Forward-Looking Statements Caution. This release contains statements and information that, to the extent that they are not historical fact, may constitute "forward-looking information" within the meaning of applicable securities legislation based on current expectations, estimates, forecasts, projections, beliefs and assumptions made by management of BluSky about the industry in which it operates. Forward-looking information includes, but is not limited to, statements regarding the agreement with Carbonpave, including commercially deploying Carbonpave's proprietary technologies throughout North America; engaging project financiers to fund an initial joint production facility; incorporating the Joint Venture with Carbonpave under the terms laid out above, or at all; the JV building its initial production facility onsite at BluSky's AR1 facility, leasing a Vulcan Heavy pyrolysis unit from BluSky, and purchasing BluSky's Vulcan II unit for research and development purposes; BluSky using additional Vulcan units to fulfill local agricultural biochar offtakes at the AR1 facility; expanding the geographic scope of the JV; and the formation of other joint ventures. Forward-looking information may also include financial and other projections, as well as statements regarding future plans, strategies, prospects, objectives or economic performance, or the assumption underlying any of the foregoing. In some cases, forward-looking statements can be identified by terms such as "may", "would", "could", "will", "likely", "except", "anticipate", "believe", "intend", "plan", "forecast", "project", "estimate", "outlook", or the negative thereof or other similar expressions concerning matters that are not historical facts.

Forward-looking information is based on current expectations, assumptions, estimates, forecasts, projections, analysis and opinions of management made considering its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. The material factors and assumptions used to develop the forward-looking information contained in this news release include, but are not limited to: the Joint Venture being incorporated, the availability of financing on reasonable terms; the Company's ability to provide any machinery, or equipment; regulatory requirements being maintained; general business, economic and political conditions; the Company's ability to successfully execute its plans and intentions; the Company's ability to attract and retain skilled staff; market competition; the products and technology offered by competitors; that good relationships with governmental authorities, contractual counterparties, service providers and other third parties will be established and maintained; continued growth of the carbon capture technology industry and positive public opinion with respect to the carbon capture technology industry. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Accordingly, readers should not place undue reliance on any such forward-looking information. Further, any forward-looking information speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company's management to predict all such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The Company does not undertake any obligation to update any forward-looking information to reflect information or events after the date on which it is made or to reflect the occurrence of unanticipated events, except as required by law, including securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/264907

FAQ

What is the ownership structure of the BluSky Carbon and Carbonpave joint venture?

BluSky Carbon will own 70% of the joint venture, while Carbonpave will own 30%. The ownership is subject to proportional dilution if new shares are issued.

How much funding does BluSky Carbon (BSKCF) need to secure for the Carbonpave partnership?

BluSky Carbon needs to secure $4.75 million USD in funding by February 18th, 2026, to establish the initial joint production facility.

What are the advantages of Carbonpave's cold asphalt technology?

The technology can reduce construction costs by up to 40%, enables paving in temperatures as low as -8°C, and has been successfully used in over 1,000 km of roads globally.

Where will the initial BluSky-Carbonpave production facility be located?

The initial production facility will be built at BluSky's AR1 facility in Arkansas, utilizing Vulcan pyrolysis units for production and R&D purposes.

What is the intellectual property arrangement in the BluSky-Carbonpave partnership?

Each party retains ownership of their contributed IP, while any new IP developed by the joint venture will be exclusively owned by the JV.