DevvStream Announces Multi-Year Agreement For The Sale Of Carbon Credits

DevvStream Announces Multi-Year Agreement For The Sale Of Carbon Credits - Carbon Herald

DevvStream Holdings Inc. (OTCQB: DSTRF), a leading carbon credit project co-development and commercialization firm specializing in technology-based solutions, announced a multi-year carbon credit purchase agreement with a major logistics and marketing firm, a wholesaler, transporter, supplier and marketer of liquid petroleum gases, crude oil, heavy fuel oil, and refined fuel and bio-fuel products. Under the terms of the Agreement, the Customer will purchase 25,000 compliance carbon credits from DevvStream, with an optional 100,000 additional credits.

Compliance credits purchased under the agreement will be generated under the Canadian Clean Fuel Regulations (CFR) program in Compliance Category 3 “supplying fuel or energy to advanced vehicle technology,” such as electric vehicle charging stations. The first delivery of CFR credits is expected by December 31, 2024.

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“This Agreement reflects the strong demand for CFR credits and DevvStream’s commitment to fostering long-term relationships with commercial buyers to incentivize innovation and adoption of clean technologies and expand the use of low-carbon intensity fuels throughout the economy,” said Sunny Trinh, CEO of DevvStream. “The CFR credits sold under this Agreement will be developed under Canada’s CFR program, the first national low-carbon fuel program in North America. Our ability to meet these stringent requirements showcases DevvStream’s expertise in the carbon sector.”

The CFR is a crucial component of Canada’s climate plan aimed at reducing emissions, advancing clean technologies and fuels, and fostering sustainable jobs in various sectors like clean technology, agriculture, and low-carbon energy. CFR regulations focus on making gasoline and diesel cleaner over time, promoting the adoption of clean fuels and technologies, and driving innovation across multiple industries. According to company estimates, the expected price for compliance credits developed under the CFR program is $200 – $300 CAD per credit.

DevvStream’s Low Carbon Fuels Advisor, Dr. Michael Rensing, will oversee the generation of CFR credits under this Agreement. Dr. Rensing has been instrumental in developing and implementing successful low-carbon fuel standard policies and legislation, including British Columbia’s, which is one of the most successful LCFS Programs in North America. Carbon credits that are sold in the BC LCFS market are among the world’s highest in value, with prices in 2023 averaging $472 CAD per credit.

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The CFR program aims to reduce the carbon intensity of transportation fuels, such as gasoline and diesel, by approximately 15% below 2016 levels by 2030, resulting in significant greenhouse gas reductions of up to 26 megatonnes. The CFRs have replaced Canada’s Renewable Fuel Regulations and focus on lifecycle greenhouse gas emissions rather than volumetric blending requirements. To comply with these regulations, primary suppliers must create credits and can trade them through a credit market established to meet specific carbon intensity reduction requirements.

The CFR program was developed under the 2016 Pan-Canadian Framework on Clean Growth and Climate Change, and is now included under Canada’s 2030 Emissions Reduction Plan, which provides a roadmap for the Canadian economy to achieve 40-45% emissions reductions below 2005 levels by 2030, building upon the actions outlined in Canada’s previous climate plans. The PCF is considered a foundational step for Canada to achieve its commitments under the Paris Agreement and work towards a prosperous net-zero emissions future by 2050.

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