DevvStream Holdings Inc.
OTCQB: DSTRF | CBOE: DESG
Game Changer | 07/25/2023 |
DevvStream’s Technology Can Single-Handedly
Improve the Legitimacy and Transparency of the Carbon Sector
Last week, we introduced a Company quite unlike any others, DevvStream Holdings Inc. (CBOE: DESG) (OTCQB: DSTRF) (FSE: CQ0). DevvStream is a technology-based ESG company that advances the development and monetization of environmental assets, with an initial focus on carbon markets. The Company works with governments and corporations worldwide to achieve their sustainability goals through the implementation of curated green technology projects. If you missed our former introduction to DevvStream, make sure to check out the previous report.
Today, we are here to discuss not only DevvStream’s latest project but also the largest single forestry project in the world. Pursuant to a Memorandum of Understanding with Bluegace Energy, the Company plans to manage a project between DevvStream and Bluegrace Energy for the Amazon Rainforest conservation measures in Bolivia at 8.3 Million Hectares in total size.
8.3M hectares is really big. The biggest forestry carbon project in the Americas up to this point is roughly 5 1/2 M hectares. DevvStream has received interest from quite a few other large land projects throughout the world to utilize the new methodology as an alternative to REDD+. With a flagship project of this size and the additional interest, it wouldn’t be crazy to think that this can become the new alternative forestry standard.
Deforestation avoidance carbon credits have been very well established under the REDD+ framework but have come under scrutiny as of late due to inaccuracies in measurement which have traditionally been made via estimations.
In response to this, and to avoid transparency and permanence issues that have been encountered in the past, DevvStream is now working on a new methodology to measure the carbon sequestration of forests that apply AI technology as well as satellite and computer imaging.
Now, let’s take a look at the economics of the deal. DevvStream will provide the carbon credit management services of this project and will receive a portion of the resulting credits that are generated from this project that, according to industry standard, could potentially be about 2-3% of the total amount.
Under previous methodologies, an average hectare of rainforest can generate ~11 carbon credits per year. This is why we are breaking down the numbers and bringing it to your attention. The average price for high quality forestry projects (which these are) are around $8-10 per credit.
Based on these numbers, the Amazon Rainforest Carbon Project has a potential value of up to $913 million per year which could produce a yearly portion for DevvStream of $18.3 million to $27.4 million. Additionally, according to the Company, forestry projects like this typically last for up to a 20 year crediting period. With this being said, the total potential value of the Amazon Rainforest Carbon Project could reach $18.3 billion meaning DevvStream’s portion could potentially be $366 million to $548 million ($256 million to $381 million with a 30% discount).
These numbers represent an estimate based on carbon credit pricing staying the same. However, the carbon credit market is actually expected to expand to meet driving demand in the coming years. This means the Amazon Rainforest Carbon Project potential value as well as DevvStream’s portion could be even higher.
All in all, DevvStream’s technology and methodology can single-handedly improve the legitimacy and transparency of the carbon sector. Make sure you read the Company’s latest press release and keep up with the growing brand.
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