Vancouver-based carbon removal technology specialist BluSky Carbon (CNSX: BSKY) has signed a Letter of Intent (LOI) for a biochar project in Northwest Arkansas, expected to generate $192 million in revenue.
This marks the company’s second large-scale initiative following its $105 million AR1 project announced earlier this year.
The AR2 project aims to produce 70,000 tons of biochar annually over a decade, with a fixed sales price of $275 per ton.
Execution hinges on securing adequate financing and formalizing the LOI into a definitive agreement, BluSky said in a statement on Wednesday.
Biochar will be supplied “as-is,” with moisture content verified through a Certificate of Analysis (CoA) at delivery.
To meet this commitment, BluSky plans to commission five Vulcan Heavy biomass pyrolysis systems.
Relevant: BluSky Carbon Commences Biochar Production In Arkansas
As part of the project, BluSky has received a 25-year land lease offer and a competitive proposal to purchase up to 500,000 tons of biomass feedstock annually from regional forestry industry waste streams.
Final decisions on these agreements are contingent on financing and definitive sales agreements.
Biochar, a stable form of carbon derived from biomass through pyrolysis, is recognized for its ability to improve soil health, enhance water retention, and sequester carbon for thousands of years.
It plays a crucial role in mitigating climate change by preventing carbon dioxide (CO2) emissions and supporting sustainable agriculture and land remediation.
BluSky CEO Will Hessert highlighted growing momentum in sustainable carbon reduction technologies, with increasing inquiries and partnerships as the company expands its impact.
The AR2 project reflects BluSky’s commitment to advancing carbon sequestration technology and supporting global climate goals.
Read more: BluSky CEO Shares Details On The Company’s Commercial Gameplan
