Carbon Streaming Announces Landmark Azuero Reforestation Carbon Removal Project in Collaboration With Rubicon Carbon, Ponterra, and Microsoft

The Azuero Reforestation Project Will Restore 10,000 Hectares of Degraded Land in Panama with Over 75 Native Tree Species

TORONTO, May 21, 2024 (GLOBE NEWSWIRE) -- Carbon Streaming Corporation (Cboe CA: NETZ) (OTCQB: OFSTF) (FSE: M2Q) (“Carbon Streaming” or the “Company”), in collaboration with Microsoft Corporation (“Microsoft”) and Rubicon Carbon Capital LLC (“Rubicon”), is pleased to announce that it has entered into a carbon credit streaming agreement (the "Azuero Reforestation Stream”) with Azuero Reforestación Colectiva, S.A. (“ARC”), a wholly owned subsidiary of leading project developer Ponterra Ltd. (“Ponterra”), for the ARC Restauro Azura project (the “Azuero Reforestation Project” or the “Project”) located in Panama.

Deal Highlights

• The Project is expected to generate 3.24 million carbon removal credits through 2052.
• Carbon Streaming, alongside Rubicon and Microsoft, will fund 100% of project costs over seven years.
• Carbon Streaming will receive 13.5% of the credits generated by the Project.
• Microsoft has entered into an offtake agreement to purchase 100% of Carbon Streaming’s credits from the Project generated through 2040.
• Carbon Streaming will act as sole marketer of ARC’s carbon credits not already committed to the co-investors under the Azuero Reforestation Stream.
• The expected IRR from the Project is consistent with Carbon Streaming’s target IRR for other investments, and the addition of a long-term carbon credit offtake has significantly de-risked cash flows.
• Verra has selected the Project to participate in its new Sustainable Development Verified Impact Standard (SD VISta) Nature Framework program.
• The Project has been designed to target six UN Sustainable Development Goals: 1 (No Poverty), 4 (Quality Education), 8 (Decent Work and Economic Growth), 13 (Climate Action), 15 (Life on Land), and 17 (Partnerships for the Goals).
• The Azuero Reforestation Stream and concurrent offtake agreement with Microsoft represents one of the largest nature-based carbon removal deals to date.
  

The Azuero Reforestation Project is expected to restore 10,000 hectares of degraded tropical forest on the Azuero Peninsula in Panama that has been converted to low-density cattle ranchland over the last century. Ponterra is actively restoring this degraded land with over 75 native tree species, using a vertically integrated reforestation strategy including nurseries, seedbanks, and deep community involvement. The Project will enable over 100 local landholders to participate in and earn an income from the reforestation activities through long-term annual payments and a share of carbon credit sales. Ponterra expects to plant over six million trees and create more than 300 permanent local jobs in the local community. The Project has been designed to target the following UN Sustainable Development Goals: 1 (No Poverty), 4 (Quality Education), 8 (Decent Work and Economic Growth), 13 (Climate Action), 15 (Life on Land), and 17 (Partnerships for the Goals). Given these strong social and environmental co-benefits, Verra has selected the Project to participate in their new SD VISta Nature Framework.