Base Carbon notes Cookstoves becomes CORSIA-eligible

Executive Summary

• Base Carbon Inc. announced the completion of its first sales of CORSIA-eligible tagged carbon credits from its Rwanda Cookstoves project, marking a significant monetization milestone.
• The project achieved full eligibility and tagging under the UN International Civil Aviation Organization's CORSIA framework for the 2024-2026 phase, positioning it among the first globally to receive this designation.
• The company contracted and sold 300,537 credits, with financial settlement expected imminently, while maintaining a substantial inventory of over 1.07 million credits for future revenue generation.

Key Details

• First sales of CORSIA-eligible tagged carbon credits from the Rwanda Cookstoves project have been completed.
• 300,537 CORSIA-eligible credits were contracted for sale, sourced from both company-held inventories and credits held by partner DelAgua Group (subject to a revenue-sharing arrangement).
• Financial settlement for the contracted sales is anticipated over the coming weeks.
• Pre-sale inventory consisted of 1,076,230 VM0050 Rwanda carbon credits, broken down into 733,874 CORSIA-eligible credits and 342,356 standard VM0050 credits.
• The company holds economic ownership subject to a revenue share with DelAgua on an additional 243,973 CORSIA-eligible credits.
• The standard VM0050 credits have been included in Rwanda's first biennial transparency report (BTR) and are expected to meet CORSIA-eligibility tagging requirements in the short term without requiring insurance.
• To achieve formal CORSIA eligibility, the project completed comprehensive technical requirements including migrating to the newest Verra methodological standard, securing insurance for corresponding adjustment obligations, and executing a formal deed agreement with Verra.
• CORSIA Phase 1 demand (2024-2026) is estimated at 146 million to 236 million credits, representing a significant market opportunity.
• Following a methodological update last fall, the company anticipates regular biannual carbon credit issuances going forward.
• The company is currently engaged in additional bona fide sales negotiations and RFPs, with plans to be strategic and opportunistic regarding future monetization.

Notable Quotes

• Michael Costa, CEO: "CORSIA tagging is a key validation milestone of Base Carbon's strategy. We are grateful for DelAgua's partnership and expertise in achieving CORSIA eligibility. Their meticulous work on migration, insurance and compliance requirements has positioned the project and our inventory exceptionally well."
• Michael Costa, CEO: "Demonstrating initial sales represents further confirmation of our business model, asset underwriting and portfolio positioning. With increasing demand from global airlines and limited current supply of eligible credits, our inventory and future issuances are well positioned to capture value through expanded monetization opportunities as the CORSIA market continues to mature."