Acadian Timber Corp. Announces Sale of Voluntary Carbon Credits

EDMUNDSTON, New Brunswick, March 20, 2024 (GLOBE NEWSWIRE) -- Acadian Timber Corp. (“Acadian”) (TSX:ADN) today announced an agreement for the sale of voluntary carbon credits relating to the first reporting period of its ongoing carbon credit project.

“We are pleased with the agreement to sell nearly all of our currently registered carbon credits, demonstrating the continued gravitation towards high quality carbon credit projects,” commented Adam Sheparski, President and Chief Executive Officer. “The registration process for the second and third tranches of carbon credits for this project is well under way, and we look forward to future additional sales.”

The credits are expected to be delivered prior to the end of the third quarter of 2024, generating net proceeds to Acadian of approximately U.S.$14 million or C$19 million, using current foreign exchange rates.

Acadian’s project is registered on the American Carbon Registry under the name Anew – Katahdin Forestry Project, and requires balancing harvest and growth, long-term planning, periodic carbon inventory verification, and maintenance of the Acadian’s sustainable forestry certification.

The project is expected to generate an additional 1.1 million credits over the remainder of the 10-year crediting period. Actual credit issuances will be adjusted each reporting period based on actual harvesting, natural disturbances, and other factors, as well as periodic updating for inventory and verification activities.

The impact to Acadian’s future financial results from the sale of additional carbon credits is subject to market conditions, the successful marketing of the credits and to the timing of, and prices obtained from, contracts negotiated with third parties. Prices obtained from prior sales are not necessarily indicative of prices that will be obtained in the future.

Acadian Timber Corp. is one of the largest timberland owners in Eastern Canada and the Northeastern U.S. and has a total of approximately 2.4 million acres of land under management. Acadian owns and manages approximately 777,000 acres of freehold timberlands in New Brunswick, approximately 300,000 acres of freehold timberlands in Maine and provides timber services relating to approximately 1.3 million acres of Crown licensed timberlands in New Brunswick. Acadian’s products include softwood and hardwood sawlogs, pulpwood and biomass by-products, sold to approximately 90 regional customers. Acadian also develops carbon credits for sale in voluntary carbon credit markets.