Base Carbon obtains India ARR expansion options

Executive Summary

• Base Carbon Inc. has acquired two contractual options to expand its India Afforestation, Reforestation, and Revegetation (ARR) project at no additional cost, allowing for the planting of 20 million additional trees.
• The expansion options allow the company to purchase associated carbon credits on substantially similar economic terms as the initial project and remain exercisable over the full 20-year project life.
• The company announced an investor town hall for September 30, 2025, to provide a business update, while noting that the initial project has completed planting of 6.5 million trees and is awaiting validation from Verra.

Key Details

• Expansion Options:
  • Granted two contractual options to expand the India ARR project at no additional cost.
  • Each option allows for the funding of 10 million additional trees (20 million total).
  • Expansion allows for the purchase of all associated carbon credits on substantially similar economic terms as the initial project.
  • Options are exercisable over the full 20-year duration of the current project life.
  • These options supplement the existing right of first refusal held by Base Carbon Capital Partners Corp. (BCCPC) regarding any extension or expansion initiated by partner Value Network Ventures Pte. Ltd. (VNV).
• Project Status & Financials:
  • Initial Project Scope: Afforestation/reforestation of degraded rural farmlands in Uttar Pradesh, India.
  • Planting Progress: Full planting of 6.5 million trees completed as of December 31, 2024.
  • Validation: Project submitted to Verra for validation (Project ID 4892); first issuance of carbon credits expected in the first half of 2026.
  • Capital Deployment: Approximately $6.7 million (U.S.) deployed of $13.6 million (U.S.) committed to the initial project.
  • Remaining Capital: Approximately $6.0 million (U.S.) is maintenance capital, with ~$4.0 million (U.S.) expected to be financed through initial sales of carbon credits.
• Project Details:
  • Planting over 16 different tree species on smallholder lands (5 hectares or less).
  • Species include Citrus, Guava, and Mahua trees.
  • Focus on community-centric engagement, food security, and income generation for local families.
• Upcoming Event:
  • Investor Town Hall on Tuesday, Sept. 30, 2025, at 11 a.m. Eastern Time via Zoom.

Notable Quotes

• "VNV continues to demonstrate high-quality work and reliability as a project partner, and we are excited to be expanding our collaboration through these new opportunities to grow the project. We believe that the ability to expand existing carbon credit generating projects, at the right time, can strategically reduce risk through reinvestment into known and proven projects with experienced project partners, while also enhancing the expected project returns for our shareholders," said Michael Costa, chief executive officer of Base Carbon.