Carbon Streaming Corp. on Sept. 20 announced it will provide Microsoft with carbon removal credits from the Waverly Biochar project, which will be collocated at a wood pellet production facility in Waverly, Virginia.
The biochar project is being developed by Restoration Bioproducts LLC at the site of Wood Fuel Developer LLC’s 100,000-ton-per-year pellet mill. Restoration Bioproducts in December 2022 announced it had broken ground on the biochar project.
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Virginia Gov. Glenn Younkin announced plans for the project in August 2022. According to information released by Youngkin’s office, Restoration Bioproducts will use pyrolysis technology to convert waste wood from the mill into biochar and syngas. The company expects to invest $5.8 million into the project over three years.
According to Carbon Streaming, the Waverly Biochar project is expected to deliver up to 10,000 metric tons of carbon dioxide removal credits per year towards Microsoft’s carbon-neative target.
“We are delighted to be working with Microsoft to provide them with high quality and scalable carbon dioxide removals to support their carbon negative commitment,” said Oliver Forster, vice president of sales at Carbon Streaming. “We’re particularly excited about the capacity for biochar to scale this decade with support from visionary organizations such as Microsoft.”
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“We’re pleased to work with Carbon Streaming to support the development of biochar as a carbon removal approach through the Waverly Biochar project,” said Brian Marrs, senior director, energy and carbon, Microsoft. “Carbon Streaming’s capacity to provide project-level finance is an important part of scaling this industry and it ensures we can focus on procuring carbon removal from high quality projects.”
Financial documents published by Carbon Streaming indicate the company entered into a carbon credit streaming agreement with Waverly RB SPE LLC, a subsidiary of Restoratin Bioproducts LLC, in May 2022 to support the construction of the Waverly Biochar project. Under terms of the agreement, Waverly RB will deliver 100 percent of the carbon credits generated by the project to Carbon Streaming for a term of 25 years. Carbon Streaming is responsible for marketing and selling the carbon credits and will make ongoing delivery payments to Waverly RB for each carbon credit it sells. The agreement was amended in July 25 to increase the upfront investment to $2.95 million. As part of the amendment, Carbon Streaming will also receive a royalty on biochar sold. Carbon Streaming expects the project to produce approximately 140,000 bone dry tons of biochar over 25 years and remove more than 262,000 metric tons of carbon dioxide equivalent emissions.
