BluSky Carbon Secures US$105 Million Biochar Sales Agreement
BluSky Carbon Inc. (CSE:BSKY)(OTCQB:BSKCF) has secured a US$105 million biochar sales agreement over 10 years. The contract involves supplying up to 382,213 tonnes of biochar for agricultural grade soil amendments in Southern USA. The delivery schedule aims for 22,200 short tons in the first year, scaling up to 40,000 tons per year thereafter. The negotiated rate is US$275 per ton.
The company's ability to meet deliveries beyond year 1 depends on commissioning additional Vulcan Heavy biomass pyrolysis systems, each costing about US$3 million. BluSky's current capacity with one Vulcan Heavy system is estimated at 15,000 tons annually, worth approximately US$4 million under the agreement.
The contract includes provisions for renegotiation or termination based on USDA funding changes or failure to fulfill terms. Emlia Partners assisted in facilitating the agreement.
BluSky Carbon Inc. (CSE:BSKY)(OTCQB:BSKCF) ha assicurato un contratto di vendita di biochar da 105 milioni di dollari per un periodo di 10 anni. Il contratto prevede la fornitura di fino a 382.213 tonnellate di biochar per miglioramenti del suolo di grado agricolo nel sud degli Stati Uniti. Il programma di consegna prevede 22.200 tonnellate brevi nel primo anno, con un incremento a 40.000 tonnellate all'anno successivamente. Il tasso negoziato è di 275 dollari per tonnellata.
La capacità dell'azienda di rispettare le consegne oltre il primo anno dipende dall'avvio di ulteriori sistemi di pirolisi biomassa Vulcan Heavy, ciascuno del valore di circa 3 milioni di dollari. La capacità attuale di BluSky con un sistema Vulcan Heavy è stimata in 15.000 tonnellate annue, per un valore di circa 4 milioni di dollari secondo l'accordo.
Il contratto include disposizioni per la rinegoziazione o la risoluzione basate su cambiamenti nel finanziamento USDA o sul mancato adempimento dei termini. Emlia Partners ha assistito nella facilitazione dell'accordo.
BluSky Carbon Inc. (CSE:BSKY)(OTCQB:BSKCF) ha conseguido un acuerdo de ventas de biochar de 105 millones de dólares por un período de 10 años. El contrato implica el suministro de hasta 382.213 toneladas de biochar para enmiendas de suelo de grado agrícola en el sur de EE. UU. El cronograma de entrega apunta a 22.200 toneladas cortas en el primer año, aumentando a 40.000 toneladas por año después. La tarifa negociada es de 275 dólares por tonelada.
La capacidad de la empresa para cumplir con las entregas más allá del primer año depende de la puesta en marcha de sistemas de pirólisis de biomasa Vulcan Heavy, cada uno con un costo de aproximadamente 3 millones de dólares. La capacidad actual de BluSky con un sistema Vulcan Heavy se estima en 15.000 toneladas anuales, con un valor de aproximadamente 4 millones de dólares según el acuerdo.
El contrato incluye disposiciones para la renegociación o terminación basadas en cambios en el financiamiento del USDA o en el incumplimiento de los términos. Emlia Partners ayudó a facilitar el acuerdo.
BluSky Carbon Inc. (CSE:BSKY)(OTCQB:BSKCF)는 10년 동안 1억 500만 달러의 바이오차 판매 계약을 체결했습니다. 이 계약은 미국 남부의 농업용 토양 개량을 위해 최대 382,213톤의 바이오차를 공급하는 것을 포함합니다. 배송 일정은 첫 해에 22,200 단톤을 목표로 하며, 이후 연간 40,000톤으로 증가할 예정입니다. 협상된 요금은 톤당 275달러입니다.
회사가 1년 이후에도 배송을 준수할 수 있는 능력은 각각 약 300만 달러의 비용이 드는 벌칸 헤비 바이오매스 열분해 시스템을 추가로 가동해야 합니다. BluSky의 현재 용량은 하나의 벌칸 헤비 시스템으로 연간 15,000톤으로 추정되며, 계약에 따라 약 400만 달러의 가치가 있습니다.
계약에는 USDA 자금 변경이나 조건 불이행에 따라 재협상 또는 종료에 대한 조항이 포함되어 있습니다. Emlia Partners는 계약 체결을 돕는 데 도움을 주었습니다.
BluSky Carbon Inc. (CSE:BSKY)(OTCQB:BSKCF) a sécurisé un contrat de vente de biochar de 105 millions de dollars sur 10 ans. Le contrat implique la fourniture de jusqu'à 382.213 tonnes de biochar pour des amendements de sol de grade agricole dans le sud des États-Unis. Le calendrier de livraison vise 22.200 tonnes courtes la première année, augmentant à 40.000 tonnes par an par la suite. Le tarif négocié est de 275 dollars par tonne.
La capacité de l'entreprise à respecter les livraisons au-delà de la première année dépend de la mise en service de systèmes de pyrolyse biomasse Vulcan Heavy, chacun coûtant environ 3 millions de dollars. La capacité actuelle de BluSky avec un système Vulcan Heavy est estimée à 15.000 tonnes annuelles, valant environ 4 millions de dollars selon le contrat.
Le contrat comprend des dispositions pour la renégociation ou la résiliation basées sur des changements de financement de l'USDA ou un manquement aux termes. Emlia Partners a aidé à la facilitation de l'accord.
BluSky Carbon Inc. (CSE:BSKY)(OTCQB:BSKCF) hat einen Vertrag über den Verkauf von Biochar im Wert von 105 Millionen US-Dollar über einen Zeitraum von 10 Jahren gesichert. Der Vertrag umfasst die Lieferung von bis zu 382.213 Tonnen Biochar für landwirtschaftliche Bodenverbesserungen im Süden der USA. Der Lieferplan sieht vor, 22.200 Kurztonnen im ersten Jahr zu liefern, die daraufhin auf 40.000 Tonnen pro Jahr steigen. Der verhandelte Preis beträgt 275 US-Dollar pro Tonne.
Die Fähigkeit des Unternehmens, die Lieferungen über das erste Jahr hinaus einzuhalten, hängt von der Inbetriebnahme zusätzlicher Vulcan Heavy Biomasse-Pyrolysesysteme ab, die jeweils etwa 3 Millionen US-Dollar kosten. Die aktuelle Kapazität von BluSky mit einem Vulcan Heavy-System wird auf 15.000 Tonnen jährlich geschätzt, was einem Wert von etwa 4 Millionen US-Dollar gemäß dem Vertrag entspricht.
Der Vertrag enthält Bestimmungen für die Neugestaltung oder Kündigung, die auf Änderungen der USDA-Finanzierung oder Nichterfüllung der Bedingungen basieren. Emlia Partners hat bei der Ausarbeitung des Vertrags geholfen.
- Secured a US$105 million biochar sales agreement over 10 years
- Initial volume of 22,200 short tons in the first year, scaling up to 40,000 tons per year
- Negotiated rate of US$275 per ton
- Current capacity with one Vulcan Heavy system estimated at 15,000 tons annually (US$4 million in sales)
- Ability to meet deliveries beyond year 1 depends on securing financing for additional Vulcan Heavy systems
- Each additional Vulcan Heavy system costs approximately US$3 million
- Contract includes provisions for renegotiation or termination based on USDA funding changes
- No assurance given that financing for additional systems will be secured on acceptable terms
Ten-year contract for agricultural grade soil amendments in Southern USA
OLD SAYBROOK, CT and VANCOUVER, BC / ACCESSWIRE / September 24, 2024 / BluSky Carbon Inc. (CSE:BSKY)(OTCQB:BSKCF)(FWB:QE4)(WKN:A401NM) ("BluSky" or the "Company"), an innovative entry into the carbon removal clean technology sector is very pleased to announce that it has entered into a sales agreement (" Sales Agreement ") with a U.S. based purchaser (" Purchaser ") pursuant to which the Company has agreed to supply, and the Purchaser has agreed to purchase, up to 382,213 tonnes of biochar over a period of 10 years substantially on the schedule and pricing terms as set forth below:
Table 1 (Left) Blusky Carbon monthly biochar scale-up sales for year 1.
Table 2 (Right) BluSky Carbon monthly biochar sales for years 2 to 10
All currency stated as US dollars. Net 60 days. Delivery: FOB BluSky production site.
(as of September 24, 2024)
Table 3: BluSky Carbon annual biochar sales for years 1 to 10 (as of September 24, 2024)
The Agreement sets forth a delivery schedule (see tables 1 to 3 above) designed to achieve an initial volume of approximately 22,200 short tons [1] within the first year of operation, scaling up to approximately 40,000 tons per year for the remainder of the of the Agreement. Biochar will be supplied on as-is basis. The moisture content will be verified with a Certificate of Analysis (CoA) at delivery. Based upon a negotiated rate of two hundred and seventy-five dollars (US
Biochar is black carbon produced from biomass sources (i.e., wood chips, plant residues, manure or other agricultural waste products) for the purpose of transforming the biomass carbon into a more stable form (carbon sequestration). [2] It can persist for long periods of time in the soil at various depths, typically thousands of years. Biochar is produced by heating biomass or waste materials containing carbon through pyrolysis. Pyrolysis involves thermal and chemical decomposition of biomass in limited or zero supply of oxygen, typically at temperatures ranging from 300°C to 1000°C. Biochar can be used as a soil amendment to improve soil physical and chemical properties, enhance water retention, and sequester carbon. It also contributes to climate change mitigation by stabilizing carbon in soils for thousands of years, preventing it from being released as carbon dioxide into the atmosphere. Biochar has shown promise in increasing crop yields, improving soil fertility, and reducing environmental pollution through its ability to retain nutrients and minimize greenhouse gas emissions. [3]
The Company notes that its ability to meet scheduled delivery of biochar beyond year 1 is conditional upon its commissioning and receiving an additional two (2) Vulcan Heavy biomass pyrolysis systems (Vulcan Heavy). The Company anticipates that each Vulcan Heavy will cost approximately US
The Company notes further that if either party fails to fulfill the terms of this Agreement, the other party may give written notice detailing the breach; thereafter, if the defaulting party does not remedy the breach within ninety (90) days, the Agreement may be terminated for cause. Moreover, the Agreement provides that if congressional funding to the United States Department of Agriculture (USDA) is reduced relative to the funding provided to USDA in 2024, then either party shall have the right to require the other to engage in good faith negotiations to amend the price and material terms of this Agreement; in the event such terms cannot be renegotiated, the Agreement will terminate with no further obligation or liability owed by either party.
The Agreement was concluded with the assistance of Emlia Partners (Emlia), an entity which provides specialized consulting services and an extensive network of brokers and developers with the aim of facilitating access for project financing opportunities focused on biochar solutions for agricultural enterprises.
Notes Emlia Partners' Managing Director, Mr. John Harty, "Biochar's inherent properties are vital to building a sustainable circular economy, offering long-term environmental benefits, while sequestering carbon. The Agreement is a testament to BluSky's innovation and leadership, positioning them at the forefront of the biochar and carbon removal industry. We are proud to be working with their team."
BluSky CEO Will Hessert comments, "This sale positions BluSky as a growing force in the increasingly important carbon removal economy. As with any emerging sector, there is a lot of work yet to be done. Operationally, many of the key elements are already in place, including our first large-scale Vulcan Heavy biomass pyrolysis unit. The system is currently undergoing setup and testing. The Vulcan Heavy is designed to be a capital-efficient module that can produce industrial quantities of biochar. We founded BluSky Carbon to remove gigatonnes of carbon dioxide from the atmosphere. This Agreement is a great step forward in that direction, and we aim to take many more."
About BluSky Carbon Inc. (CSE:BSKY)(OTCQB:BSKCF)(FWB: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
Sales or partner opportunities:
Greg Pakiela, Business Development
greg.pakiela@bluskycarbon.com
Forward-Looking Information Disclaimer
This news release contains statements and information that constitute "forward-looking information" within the meaning of applicable securities laws. Such information is based on current expectations, estimates, forecasts, projections, beliefs and assumptions made by management of BluSky. Forward-looking information may 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. Examples of such statements within this news release include, but are not limited to: the anticipated term of the Agreement; that the counterparty thereunder will fulfill its obligations; that the Company will be successful in scaling its operations, which requires, among other things, the acquisition of multiple Vulcan Heavy machines; that the Company will be successful in completing the buildout of its Kiloplex facility, including testing and optimization of its Vulcan Heavy system; that the Company will be able to complete financings required to scale its operations; and that the Company will be able to meet its commitments under the Agreement.
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: regulatory requirements being maintained; general business, economic and political conditions; the Company's ability to successfully execute its plans and intentions; the availability of financing on reasonable terms; the Company's ability to attract and retain skilled staff; market competition; the products and technology offered by competitors; that good relationships with 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, including, without limitation the Company's limited operating history; negative cash flow; financial position and results of operations differing materially from expectations; the expectation of incurring future losses and never becoming profitable; requiring additional capital to continue operations; reliance on the third-party service providers; strong competition from competitors in the carbon capture technology industry; technological changes in relation to carbon capture that may adversely affect adoption of current technology or the Company's products; supply and demand for the reduction of carbon emissions; and other risk factors described in the Amended Prospectus. 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.
Investors are cautioned to not place undue reliance on forward-looking information, and to carefully review the risk factors described in the Company's Final Prospectus dated May 27, 2024, as amended by Amended No. 1 dated June 11, 2024, available on www.sedarplus.ca under the Company's profile
The CSE has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.
[1] The short ton is a measurement unit equal to 2,000
[3] https://edis.ifas.ufl.edu/publication/SS585
SOURCE: Blusky Carbon Inc.
View the original press release on accesswire.com
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