Regen Ag

Regenerative Agriculture Carbon Project

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

Operator

Anew Climate LLC, Locus Agricultural Solutions

Location

USA

Stage

Operating (2023E carbon credit accumulation)

Commodity

Verra Verified Carbon Standard voluntary carbon credit

Terms

Proceeds sharing agreement with Anew Climate LLC

Purchase Price

US$20.6 million

Green Star Royalties and Anew Climate announced an agreement to create premium, verified carbon credits that will reward the adoption of regenerative agriculture practices by North American farmers. This agreement initially started a program that would enable an Anew Climate and Locus AG partnership to incentivize regenerative agriculture practices on 320,000 acres of farmland, maximizing soil health and the soil’s carbon sequestration capacity. 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. Green Star Royalties and Anew Climate expect this expanded program to result in over 2 million carbon credits per year, generating credits starting in 2023 from regenerative agriculture practices undertaken during the 2022 growing season. The carbon credits will be available for sale in the voluntary carbon marketplace. This program has been financed by Green Star Royalties, with Anew Climate executing the carbon offset development and sales.

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: Pioneered by Green Star Royalties and Anew Climate, this novel approach, in partnership with grower-facing organizations such as Locus AG, 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 equivalent to approximately 560,000 carbon credits from the expanded project (100,000 previously).
Preferred partnership drives growth: Green Star Royalties and Anew Climate look to finance progressively larger regenerative agriculture projects with further potential of over one billion acres of additional prospective farmland in the United States and in Canada.
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 Anew Climate’s regenerative agriculture carbon program with cash proceeds made available to growers through Locus AG’s CarbonNOW program 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.
The pilot program has a 11.5-year term, with future carbon credit revenues, net of expenses, to be split between growers, Anew Climate and Green Star Royalties.

Anew Climate

Anew Climate is a climate action partner for private and public companies, non-profit organizations and governments. Anew Climate has pioneered creative solutions to the climate crisis since 2001, with deep expertise across environmental technologies and markets.

With close to 400 active projects in the United States and Canada, Anew Climate is a leader in voluntary, compliance and pre-compliance carbon, renewable energy attribute, renewable natural gas and energy efficiency markets. For seven consecutive years, Anew Climate 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.