Regen Ag

Regenerative Agriculture Carbon Project

Flagship carbon farming program to generate premium, verified carbon credits from regenerative agriculture practices across the USA

Operator

Locus Agriculture

Location

USA

Stage

Development (2025E start)

Commodity

Verra Verified Carbon Units voluntary carbon offset credit

Terms

30% Gross Revenue royalty on CarbonNOW® program

Purchase Price

US$20.6 million

The royalty is payable in cash from the sale of carbon offsets or directly in carbon credits, at Green Star Royalties’ election. In addition, the term of the royalty has been increased from 10 years to 20 years of carbon credit issuance to better capture the longevity and durability of the CarbonNOW program and should contribute significant incremental cash flow generation to Green Star Royalties through the early 2040’s. At the end of 2023, there were approximately 310,000 acres of U.S. farmland is enrolled in the program, representing the full scope of the original pilot. As enrollment progresses, the CarbonNOW program is anticipated to generate approximately 250,000 carbon credits starting in 2025 and progressively increasing to over 1.3 million carbon credits per year over the following 20 years. Green Star estimates generating cash flow from approximately 75,000 carbon credits in 2025, increasing to over 400,000 carbon credits per year over the royalty term. This program has been financed by Green Star Royalties, operated and managed by Locus AG, while Anew remains the carbon project developer and will lead CarbonNOW’s validation and verification efforts, as well as conduct carbon credit marketing and sales. The carbon credits will be available for sale in the voluntary carbon marketplace. Additional information on the royalty structure can be found here.

Green Star Royalties, in partnership with Locus Agriculture (“Locus AG”) , incentivizes the adoption of regenerative agriculture practices by North American farmers. This practice change, which includes the application of Locus AG’s revenue-accelerating and award winning agricultural biologicals, is expected to improve soil health, accelerate atmospheric CO₂ removal, reduce the use of traditional NPK fertilizers and improve crop yields, ultimately resulting in the creation of premium, verified carbon credits. This CarbonNOW® carbon farming program was initially started as an agreement by Green Star Royalties, Locus AG and Anew Climate to incentivize regenerative agriculture practices on 320,000 acres of U.S. farmland in 2021. However, following strong demand and grower enrollment, in April 2022 the CarbonNOW® carbon farming program was expanded more than fourfold to cover 1.32 million acres of farmland. In January 2024, as part of optimizing the CarbonNOW program, Green Star Royalties partnered directly with Locus AG and revised the original proceeds sharing agreement with Anew Climate to a 30% gross carbon revenue royalty on the program.

Highlights

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 CO₂ removal and sequestration into soils.
Innovative, aligned benefit structure: The partnership between Locus AG and Green Star Royalties, with Anew Climate as the carbon project developer, enables farmers to participate in the carbon credit market, maximizing benefits and alignment to all program participants.

Premium credits in a low-risk jurisdiction: Providing carbon finance to growers across the United States to create premium regenerative agriculture carbon credits for the voluntary carbon markets.
Material increase in scope: Project expansion from 320,000 to 1.32 million acres reflects strong demand and likelihood of grower enrollment.
Originating carbon credits: Green Star Royalties anticipates generating annual cash flow approximately 75,000 carbon credits in 2025, increasing to over 400,000 carbon credits per year over the 20-year royalty term.
Highly reputable partner: Anew Climate is North America’s leading carbon offset developer and marketer, with a proven track record spanning over 21 years in developing and monetizing nature-based carbon offset projects.

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 not otherwise occurred by utilizing current farming practices.

Green Star Royalties will be financing Locus AG’s regenerative agriculture CarbonNOW program with cash proceeds made available to growers in order to fund revenue-accelerating and award-winning microbial soil probiotic technology.
Locus AG will actively recruit growers until a total of 1.32 million acres of farmland across the USA have been adopted into program.
Green Star's 30% gross carbon revenue royalty on the program has a 20-year term.

Locus AG

Locus Agriculture (Locus AG) is an agriculture biological company that consistently pairs the most vital inputs with data-driven guidance to help growers achieve more productive, sustainable crops. Its globally recognized CarbonNOW® carbon farming program gives farmers a new way to boost yields, profit and accelerate carbon sequestration while reducing operating costs and environmental impact. Locus AG gets its core scientific capabilities from its parent company, Locus Fermentation Solutions (Locus FS), an Ohio-based green technology powerhouse. For more information, visit LocusAG.com.

Anew Climate

Anew is accelerating the fight against climate change by enabling companies and organizations to align their goals for conservation and impact with actionable next steps. With a comprehensive solutions portfolio that includes advisory services, carbon credits, renewable natural gas, renewable energy certificates, EV credits, and emission credits, Anew lowers barriers to participation in environmental markets for clients across the private and public sectors.

As a leading marketer and originator of environmental products, the company brings together strategic finance, regulatory expertise, scientific knowledge, and impact focus to make it possible for businesses to thrive while building a sustainable future. Anew is majority owned by TPG Rise, TPG’s global impact investing platform, and emerged from the February 2022 combination of durational industry leaders Element Markets, LLC and Blue Source, LLC. The company has offices in the U.S., Canada, and Europe, and an environmental commodities portfolio that extends across five continents.