Carbon Streaming Announces Sustainable Rice Farming Stream With Core Carbonx

Carbon Streaming Corporation (NEO: NETZ) (OTCQB: OFSTF) (FSE: M2Q) (“Carbon Streaming” or the “Company”) is pleased to announce that it has entered into a carbon credit streaming agreement (“Nalgonda Rice Farming Stream” or the “Carbon Stream”) with Core CarbonX Solutions Pvt Ltd. and its services provider, Core CarbonX Solutions Private Limited (collectively, “Core CarbonX”), to develop its Nalgonda Rice Farming methane avoidance grouped project located in the Nalgonda District, Telangana State, India (the “Project”).

The Project enrolls rice farmers in a program to reduce greenhouse gas (“GHG”) emissions by improving their rice cultivation practices and rewards participants with a portion of the proceeds received through the sale of Verified Carbon Units (“VCUs”) generated. The improved cultivation practices and resulting GHG emission reductions are achieved through implementing Alternate Wetting and Drying (“AWD”) and Direct-Seeded Rice (“DSR”) farming methods.

Streaming Agreement Highlights:

• The Project is expected to generate approximately 2.5 million VCUs over seven years, in a range of approximately 300,000 to 400,000 VCUs annually, and is expected to be independently verified and registered through Verra.
• Carbon Streaming will receive 100% of the VCUs generated by the Project, with ongoing payments to Core CarbonX for each VCU sold.
• Core CarbonX is expected to make its first delivery under the Carbon Stream in the second half of calendar year 2023.
• Carbon Streaming has made an initial upfront deposit of US$1.55 million on closing, with an additional payment of US$1.78 million as the Project achieves registration and credit issuance milestones.
• With the Project focused on methane avoidance and strong co-benefits, the Company expects VCUs generated to be sold at a premium to market pricing, which has ranged from approximately US$6.50/VCU to US$9/VCU year to date.
• Carbon Streaming expects payback in less than four years assuming current market pricing for agricultural methane avoidance credits.

Impact Highlights:

• The Project focuses on enrolling rice farmers in a program to implement AWD rice cultivation practices and educate them on the benefits of this technique.
• The AWD protocol decreases water consumption by up to 30% and allows for more oxygenation of soil, reducing anaerobic decomposition and methane emissions by up to 50%.
• All emission reductions from the Project are considered methane avoidance, delivering action towards the UN Global Methane Pledge.
• The Project targets six UN Sustainable Development Goals, including Climate Action (13), No Poverty (1), Zero Hunger (2), Decent Work and Economic Growth (8), Responsible Consumption and Production (12), and Partnerships for the Goals (17).

Carbon Streaming Founder and CEO Justin Cochrane stated: “We are delighted to announce our first carbon stream on an agricultural project and partnership with Core CarbonX. This stream continues to diversify our high-quality portfolio by project type and geography.”