ASSET SUMMARY

Operator Blue Source LLC, Locus Agricultural Solutions
Location Midwestern USA
Stage Development (2023E start)
Commodity Verra Verified Carbon Standard voluntary carbon offset credit
Terms Proceeds sharing agreement with Blue Source LLC.

Green Star Royalties and Bluesource announced an agreement to create premium, verified carbon offset credits that will reward the adoption of regenerative agriculture practices by North American farmers. This agreement marks the start of a pilot program that will enable a Bluesource and Locus AGpartnership to incentivize regenerative agriculture practices on 320,000 acres of farmland, maximizing soil health and the soil’s carbon sequestration capacity. Green Star Royalties and Bluesource expect this pilot phase to result in over 500,000 carbon offset credits per annum commencing in 2023, to be available for sale in the voluntary carbon marketplace. This program has been financed by Green Star Royalties, with Bluesource executing the carbon offset development and sales.

PROGRAM HIGHLIGHTS

  • Originating carbon offset credits: Green Star Royalties anticipates generating annual revenues equivalent to approximately 100,000 carbon offset credits from this project.
  • Premium credits in a low-risk jurisdiction: Providing carbon finance to growers across the Midwestern United States to create premium regenerative agriculture carbon offset credits for the voluntary carbon markets.
  • Significant scalability: Initial pilot project to target 320,000 acres, with further potential of over one billion acres of additional prospective farmland in the United States and in Canada.
  • Preferred partner status: Green Star Royalties is a preferred partner of Bluesource for the financing of multiple future regenerative agriculture projects.
  • Innovative aligned benefit structure: Pioneered by Green Star Royalties and Bluesource, this novel approach, in partnership with grower-facing organizations such as Locus AG, enables farms to participate in the carbon credit market, ensuring aligned benefits to all program participants.
  • Sustainable farming: This initiative aims to finance and accelerate the transition of North American farmers to sustainable farming practices that will improve soil health and accelerate atmospheric CO2removal and sequestration into soils.
  • Highly reputable partner: Bluesource is North America’s leading carbon offset developer and marketer, with a proven track record spanning over 20 years in developing and monetizing nature-based carbon offset projects.

ASSET DESCRIPTION

  • Regenerative agriculture aims to promote topsoil health regeneration and to rebuild soil organic matter while improving water management, reducing or eliminating nitrogen-based fertilizers, increasing biodiversity, and implementing low tillage and cover crop practices.
  • Regenerative agriculture reverses climate change by sequestering significant additional amounts of atmospheric CO2 into soils than would have occurred by utilizing current farming practices.
  • Green Star will be financing Bluesource’s regenerative agriculture carbon offset program with cash proceeds made available to growers through Locus AG’s CarbonNOW program and will fund revenue-accelerating and award-winning microbial soil “probiotic” technology.
  • Locus AG will actively recruit growers under pilot project until a total of 320,000 acres of farmland across Midwestern U.S. have been adopted into program.
  • The pilot program has a 11.5-year term, with future carbon credit revenues, net of expenses, to be split between growers, Bluesource and Green Star.

Bluesource
Bluesource is a climate action partner for private and public companies, non-profit organizations and governments. Bluesource has pioneered creative solutions to the climate crisis since 2001, with deep expertise across environmental technologies and markets. With more than 200 active projects in the United States and Canada, Bluesource is a leader in voluntary, compliance and pre-compliance carbon, renewable energy attribute, renewable natural gas and energy efficiency markets. For six consecutive years, Bluesource has been voted Best Project Developer (North America) and Best Offset Originator (California) by peers and partners in Environmental Finance’s Annual Market Rankings.

Locus AG
Locus AG is an agtech Certified B Corporation and World Business Council for Sustainable Development innovator that is helping to solve the interrelated challenges of climate change and food security. Its innovative, award-winning microbial soil “probiotic” technology and CarbonNOW program give farmers a new way to boost crop yields and profit and accelerate carbon sequestration while reducing operating costs and environmental impact. The company’s success has received global recognition, including being named a Top 100 North America Winner by Red Herring, one of the Top New 50 Startups to Watch by Cleantech Group and winner of NREL’s Industry Growth Forum Outstanding Venture Award. Locus AG gets its core scientific capabilities from its parent company, Locus Fermentation Solutions, an Ohio-based, globally recognized green technology company. For more information, visit LocusAG.com.