BluSky Carbon Signs LOI for US$192 Million AR2 Biochar Project
BluSky Carbon has signed a Letter of Intent (LOI) for a second commercial facility project (AR2) in Northwest Arkansas, following their previously announced US$105 million AR1 project. The AR2 project proposal involves a US$192 million biochar sales agreement over 10 years, with a fixed volume of 70,000 tons annually at US$275 per ton.
The project's execution depends on commissioning five Vulcan Heavy biomass pyrolysis systems and securing necessary financing. The company has received a 25-year land lease agreement offer and a feedstock proposal option to purchase up to 500,000 tons of biomass annually from regional forestry industry waste streams. Delivery terms would be FOB production site in Northwest Arkansas with net 60-day payment terms.
BluSky Carbon ha firmato una Lettera di Intenti (LOI) per un secondo progetto di impianto commerciale (AR2) nel Nord-Ovest dell'Arkansas, dopo il loro precedente progetto AR1 da 105 milioni di dollari. La proposta del progetto AR2 prevede un contratto di vendita di biochar da 192 milioni di dollari per un periodo di 10 anni, con un volume fisso di 70.000 tonnellate all'anno a 275 dollari per tonnellata.
L'esecuzione del progetto dipende dall'avviamento di cinque sistemi di pirólisi della biomassa Vulcan Heavy e dal reperimento dei finanziamenti necessari. L'azienda ha ricevuto un'offerta di contratto di locazione per il terreno di 25 anni e un'opzione di proposta per l'acquisto fino a 500.000 tonnellate di biomassa all'anno dai flussi di rifiuti dell'industria forestale regionale. I termini di consegna sarebbero FOB sito di produzione nel Nord-Ovest dell'Arkansas con termini di pagamento a 60 giorni netti.
BluSky Carbon ha firmado una Carta de Intención (LOI) para un segundo proyecto de instalación comercial (AR2) en el noroeste de Arkansas, tras su proyecto AR1 previamente anunciado por 105 millones de dólares. La propuesta del proyecto AR2 incluye un acuerdo de ventas de biochar por 192 millones de dólares a lo largo de 10 años, con un volumen fijo de 70,000 toneladas anuales a 275 dólares por tonelada.
La ejecución del proyecto depende de la puesta en marcha de cinco sistemas de pirólisis de biomasa Vulcan Heavy y de asegurar la financiación necesaria. La empresa ha recibido una oferta de contrato de arrendamiento de tierras por 25 años y una opción de propuesta de compra de hasta 500,000 toneladas de biomasa anualmente de los desechos de la industria forestal regional. Los términos de entrega serían FOB en el sitio de producción en el noroeste de Arkansas con condiciones de pago a 60 días netos.
블루스카이 카본(BluSky Carbon)은 아칸소 주 북서부에서 두 번째 상업 시설 프로젝트(AR2)에 대한 의향서(LOI)를 체결했습니다. 이는 이전에 발표된 1억 5천만 달러 규모의 AR1 프로젝트에 이은 것입니다. AR2 프로젝트 제안은 1억 9천2백만 달러의 바이오차 판매 계약을 포함하며, 10년 동안 매년 70,000톤의 고정 물량을 톤당 275달러에 제공합니다.
프로젝트의 실행은 다섯 개의 벌컨 헤비 바이오매스 열분해 시스템의 가동과 필수 자금 조달 확보에 달려 있습니다. 이 회사는 25년 토지 임대 계약 제안과 매년 최대 50만 톤의 바이오매스를 지역 임업 산업 폐기물 스트림에서 구매할 수 있는 원료 제안 옵션을 받았습니다. 인도 조건은 아칸소 주 북서부 생산 현장에서 FOB 조건으로, 순 60일 결제 조건입니다.
BluSky Carbon a signé une Lettre d'Intention (LOI) pour un second projet d'installation commerciale (AR2) dans le nord-ouest de l'Arkansas, suite à leur projet AR1 précédemment annoncé d'un montant de 105 millions de dollars. La proposition du projet AR2 implique un contrat de vente de biochar de 192 millions de dollars sur une période de 10 ans, avec un volume fixe de 70 000 tonnes par an à 275 dollars la tonne.
L'exécution du projet dépend de la mise en service de cinq systèmes de pyrolyse de biomasse Vulcan Heavy et de l'obtention du financement nécessaire. L'entreprise a reçu une offre de bail foncier de 25 ans ainsi qu'une proposition d'achat de matières premières pouvant atteindre 500 000 tonnes de biomasse par an provenant des flux de déchets de l'industrie forestière régionale. Les conditions de livraison seraient FOB sur le site de production dans le nord-ouest de l'Arkansas avec des conditions de paiement net à 60 jours.
BluSky Carbon hat eine Absichtserklärung (LOI) für ein weiteres kommerzielles Anlagemodell (AR2) im Nordwesten von Arkansas unterzeichnet, nachdem das zuvor angekündigte Projekt AR1 über 105 Millionen US-Dollar bekannt gegeben wurde. Der Vorschlag für das Projekt AR2 umfasst einen Vertrag über den Verkauf von Biokohle im Wert von 192 Millionen US-Dollar über 10 Jahre, mit einem festen Volumen von 70.000 Tonnen jährlich zu 275 US-Dollar pro Tonne.
Die Ausführung des Projekts hängt von der Inbetriebnahme von fünf Vulcan Heavy Biomasse-Pyrolysesystemen und der Sicherstellung der erforderlichen Finanzierung ab. Das Unternehmen hat ein 25-jähriges Landpachtangebot sowie eine Rohstoffvorschlagsoption erhalten, um jährlich bis zu 500.000 Tonnen Biomasse aus regionalen Forstabfallströmen zu kaufen. Die Lieferbedingungen wären FOB am Produktionsstandort im Nordwesten von Arkansas mit Nettozahlungsbedingungen von 60 Tagen.
- Secured LOI for US$192 million biochar sales agreement over 10 years
- Fixed volume commitment of 70,000 tons annually at US$275 per ton
- Received 25-year land lease agreement offer
- Secured feedstock proposal for up to 500,000 tons annually
- Project execution contingent on securing financing with no assurance of success
- Requires significant capital investment for five Vulcan Heavy systems
- Final agreement still subject to negotiation
Second ten-year project proposal targets agricultural and land remediation in Northwest Arkansas
OLD SAYBROOK, CT and VANCOUVER, BC / ACCESSWIRE / December 11, 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 pleased to announce that it has signed a Letter of Intent (the "LOI") regarding a project proposal with a U.S. based purchaser ("Purchaser") pursuant to which the Company aims to establish a second commercial facility unrelated to the previously announced US
The proposal sets forth a delivery schedule (similar in nature to the AR1 sales agreement) whereby the Purchaser could purchase from the AR2 project a fixed volume of 70,000 tons of biochar per year over a period of 10 years. The biochar would be supplied on an as-is basis. The moisture content would be verified with a Certificate of Analysis (CoA) at delivery. Based upon a negotiated rate of two hundred and seventy-five dollars (US
The Company notes that its ability to meet scheduled delivery of biochar is conditional upon its commissioning a total of five (5) Vulcan Heavy biomass pyrolysis systems (Vulcan Heavy). BluSky's ability to commission any Vulcan Heavy will be contingent on its ability to secure financing on acceptable terms, and no assurance can be given this will occur. The Company further notes that the transactions contemplated by the LOI remain subject to the negotiation and entering into of a definitive agreement.
Concurrently and integral to the sales proposal contained in the LOI, BluSky has received a 25-year land lease agreement offer from a third party for the Company to lease a portion of a strategic location offering ample room and infrastructure suitable for the AR2 pyrolysis systems build-out. Additionally, BluSky has received a substantial and highly competitive feedstock proposal option from a third party to purchase up to 500,000 tons per year of biomass feedstock containing a moisture content of
Under the terms of the ten-year biochar sales proposal, standard commercial clauses regarding any breaches of agreements would be subject to written notification detailing the breach; thereafter, if the defaulting party does not remedy the breach within a mutually agreed period, the Agreement may be terminated for cause. Payment terms are proposed to be net 60 days. Delivery terms would be FOB production site in Northwest Arkansas
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).1 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.2
BluSky CEO Will Hessert comments, "The momentum in our sector continues to expand and grow. Interest in sustainable carbon reduction, related job creation opportunities, and the topic of waste transformation into a useful mix of saleable products has achieved an inflection point in the minds and attitudes of a growing number of influential business leaders across the nation. Every week we are responding to an increasing number of inquiries and expressions of interest in our technology and related carbon reduction solutions. In fact, managing the interest in our business is pushing us to adopt new procedures to ensure every opportunity has a chance to be heard. As we near the holiday season, we are blessed to be able to reflect on this remarkable situation and grateful for the interest we are more than happy to manage."
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 production 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 Company's Annual Information Form, a copy of which may be obtained under the Company's profile at www.sedarplus.ca. 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.
The CSE has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.
1 https://www.ars.usda.gov/midwest-area/stpaul/swmr/people/kurt-spokas/biochar/
2 https://edis.ifas.ufl.edu/publication/SS585
SOURCE: BluSky Carbon Inc.
View the original press release on accesswire.com
FAQ
What is the total value of BluSky Carbon's (BSKCF) AR2 biochar project?
How many tons of biochar will BSKCF deliver annually under the AR2 project?
What infrastructure does BSKCF need for the AR2 project?
How does the AR2 project compare to BSKCF's previous AR1 project?
What feedstock supply has BSKCF secured for the AR2 project?
