DevvStream Holdings Inc., a leading carbon credit project development and generation firm specializing in technology solutions, announced a multi-year carbon credit purchase agreement (the "Agreement") with a Canadian subsidiary of a large investor-owned energy company (the "Customer"). Under the terms of the Agreement, the Customer will purchase 250,000 carbon credits generated by DevvStream in accordance with compliance programs in both Alberta and British Columbia, over a minimum three-year term, subject to satisfaction of certain conditions precedent including implementation of certain proposed regulatory requirements in British Columbia. The first delivery of carbon credits is expected by December 31, 2024, and final delivery is expected by 2026, with an allowance for an optional 400,000 additional credits to be purchased beyond that window.
Carbon credits can only become eligible for trading on compliance markets if they are produced in alignment with relevant national, regional and/or international policies and legislation. Under the Agreement, DevvStream will generate carbon credits in compliance with the Technology Innovation and Emission Reduction (TIER) Regulation, enacted under Alberta's Emissions Management and Climate Resilience Act, as well as British Columbia's still-pending Output- Based Pricing System (OBPS). In the event that the B.C. OBPS has not been finalized during the term of the Agreement, and certain other conditions precedent are not satisfied, equivalent voluntary credits may be delivered in substitution at the option of the customer.
DevvStream has developed a number of targeted, scalable carbon offset programs (COPs)-including road transportation and maintenance emission reduction activities, a buildings and facilities program, efficient lighting program, electric vehicle charging station program, and a methane-abatement program centered around sealing orphaned oil and gas wells-that will be leveraged to fulfill the terms of the Agreement. To ensure scalability, DevvStream COPs utilize the Program of Activities (PoA) approach, a recognized modality of project development under the Clean Development Mechanism (CDM) of the United Nations Framework Convention on Climate Change (UNFCCC). This allows the Company to aggregate an unlimited number of eligible activities from multiple program participants, across pre-defined jurisdictions, enabling rapid deployment at scale.
"This agreement underscores our commitment to developing the highest quality technology-based carbon credits available, and equally importantly, establishing relationships with buyers who care about the integrity and underlying value of the purchases they make," said Sunny Trinh, CEO of DevvStream. "The carbon credits delivered under this agreement will adhere to the Core Carbon Principles developed by the Integrity Council for the Voluntary Carbon Market (ICVCM), but will also align with rigorous compliance program methodologies established via Canadian law. Our ability to navigate these complex requirements on a strict timeline demonstrates DevvStream's operational and technical excellence in the carbon space. This agreement also illustrates the high demand for offsets expected to be generated by our programs."
