• The Hongera Energy Efficient Cookstoves Project ("Project") in Kenya is a large-scale nature-based solutions initiative that manufactures and distributes 150,000 energy-efficient cookstoves to local communities in Kenya, reducing firewood usage, restoring nature, and minimising indoor air pollution. Efficient cookstove projects promote the effective fight against deforestation, forest degradation, and biodiversity loss. Cookstove projects have a significant impact, as efficient cookstoves enable households to reduce 30-90% of the CO2 emissions resulting from traditional open-fire cooking.
• On 22 March 2022, the Project entered the development phase. It is designed under the Gold Standard methodology 'Technologies and Practices to Displace Decentralized Thermal Energy Consumption'. The Project is expected to originate approximately 1.8 million carbon units (carbon credits) with yearly unit issuances from 2024 to 2030 (approximately 300,00 carbon units per annum). The Project can be extended after the initial 6-year crediting period.
• On 13 July 2022, the Buyer committed to funding 100% of all the capital expenditures of the Project by buying 507,720 carbon units (approximately 30% of the total expected tCO2e of the Project) against an upfront payment of €1.7 million upon completing certain milestones.
• On 31 August 2022, DGB received its first upfront payment of €500,000 for this first milestone. On 29 November, DGB received €600,000 for completing the second milestone: completing the Project Design Documentation and manufacturing the first cookstoves. On 8 May 2023, DGB received €450,000 for completing the next milestone by submitting the Project Design Document to an external auditor on 5 May 2023.
• Now, the Project has reached another significant milestone: it has manufactured and distributed 50,000 energy-efficient cookstoves to local households in Kenya, completing the final milestone on the purchase agreement. DGB received the final payment of €150,000 from the Buyer for completing this milestone.
The forward carbon unit sales achieved through these milestones reflect DGB's commitment to achieving its strategic goal of establishing forward purchases of €2+ million contracts by Q3 2024. It is a testament to DGB's ongoing commitment to developing and scaling impactful nature-restoration projects that generate high-quality, verified carbon units.
CEO Duijvestijn stated: "The Project has evolved from a local initiative into a global force for nature restoration. Through creative collaborations with PlanetPlay, Subway Surfers, and J Balvin, it demonstrates how carbon units can make a tangible impact on a worldwide scale. DGB anticipates securing more significant and impactful deals in this rapidly growing market, thanks to its proven track record of developing and managing high-integrity carbon projects."
© 2024 GlobeNewswire (Europe)
