Carbon Streaming Corporation has entered into a project pipeline streaming agreement with Mast Reforestation for up to $15 million. The project aims to advance the company’s pipeline of post-wildfire reforestation projects in the Western USA.
At the same time, Carbon Streaming will invest $2 million into the parent company of Mast Reforestation. Other investors of Mast include Social Capital, TIME Ventures, and Elemental Excelerator.
The first carbon streaming agreement was signed under the Pipeline Agreement for the Sheep Creek Ranch project in the state of Montana. Carbon Streaming will enter into separate agreements for each project. The projects with Mast Reforestation will be registered under the Climate Action Reserve’s Climate Forward program.
Forecasted Mitigation Units – or CO2 credits – generated by the projects are expected to be sold to Afforestation, Reforestation, and Revegetation credits at a premium price because of good geographical location and biodiversity benefits. Previous buyers of Mast Reforestation’s CO2 credits include Shopify and Time CO2.
Relevant: DroneSeed Acquires Cal Forest Nurseries, Sets Forth New Parent Brand Mast Reforestation
As part of each stream agreement, Carbon Streaming will make an upfront deposit in exchange for receiving up to 100% of the CO2 credits generated from the projects and will make ongoing payments for each sold CO2 credit.
The Sheep Creek Reforestation Stream is set to remove about 225,000 metric tons of CO2 equivalent, and the CO2 credits are expected to be issued in 2025 and 2026. Carbon Streaming expects to receive financial payback for the project following the first issuance.
The Mast Reforestation Projects are expected to bring positive impacts for wildlife and terrestrial and water ecosystems for over 100 years, along with supporting rural communities and creating new jobs.
“We are excited to collaborate with Carbon Streaming in this new partnership as it shares our unique vision for scaling reforestation and carbon removal solutions,” said Grant Canary, Founder and CEO of Mast. “This Pipeline Agreement is a scalable model that will help us get more trees in the ground, accelerating reforestation efforts in areas devastated by the rise in forest fires amplified by climate change.”
Read more: ‘DroneSeed’s Mission Is To Make Reforestation Scalable’ – Jonathan Loevner, VP of Carbon Markets
