Canadian firm to sell credits in Asia, signs domestic soil carbon MoU

Quantum Commodity Intelligence – A Canada-based project developer is looking to sell carbon credits into Asia after signing a marketing deal with a Singapore-based firm, and separately has signed an agreement with a compatriot company to enhance soil and marine carbon sequestration activities.

Carbon RX said Tuesday the agreement with Grand Light Holdings Limited made the latter "non-exclusive marketing agent" for carbon credits from projects for 12 months starting on January 31.

On Wednesday Carbon RX announced a memorandum of understanding (MoU) with biosynthetic algae and seaweed carbon sequestration company King Tide Carbon to combine the companies' expertise in terrestrial and aquatic carbon market expertise.

The Grand Light deal aims to provide Carbon RX with access to "emerging" Asian markets, including Singapore, Taiwan, China and Hong Kong, taking advantage of the growing net-zero commitments of companies in the region.

"Canadian-based carbon credits are viewed very positively in our local market due to the high integrity of Canadian operators," said Grand Light's Jack Yao in a statement.

Credits for marketing in Asia will come from all Carbon RX projects, Carson Sinclair, director of origination and marketing told Quantum.

"We are currently in the process of securing approval from the VVB [verification and validation body] for our 'Canadian Prairies Cropland Project', which notably includes First Nations farmland within Treaty 4 Territory in the heart of the Canadian Grain Belt," he said.

"Additionally, we are actively developing a forestry project, as well as, a grasslands project, both of which have a strong focus on First Nations land, with many more projects to come," he added.

"Upon registry approval, all of these credits will be available for Grand Light to market across the Asian market," Sinclair added.

The Canadian Prairies Cropland Project is based on the RX Regenerative Agriculture Protocol, which was approved by the Pure Sky registry in December.

Sinclair added that the company is "confident in the applicability" of its credits "within the diverse regulatory frameworks" of Asian countries.

"We believe that our carbon credits offer a viable option for Asian businesses looking to meet their obligations in their respective domestic carbon markets," he said.

King Tide deal

The MoU with King Tide is a step towards a "definitive agreement", which, if reached, would see the duo provide marketing and assistance in the sale of carbon credits generate by both companies.

In addition, Carbon RX would gain access King Tide's "soil enhancing" products, such as biochar, derived from its aquatic carbon capture techniques, including from biosynthetic algae and seaweed.

King Tide will get to "leverage" Carbon RX's extensive land base, including First Nations and non-First Nations landholdings.

"The application of aquatic carbon capture techniques and the application of these products on western Canadian soils has great potential to help our farmers sequester additional carbon," said Carbon RX chief executive Marty Seymour.

"By merging aquatic carbon sequestration with terrestrial applications we believe we can add value to Canadian farms. This MoU accelerates our access to a key market for King Tide in Canada," King Tide founder, Matt Lodge, added.

Carbon RX had not responded to Quantum's request for comment at press time.