Canada-based DevvStream Holdings Inc. (OTCQB: DSTRF), a leader in carbon credit generation, has announced plans to acquire a 50% equity stake in Monroe Sequestration Partners (MSP), a subsidiary of Crestmont Investments LLC.
The transaction will be funded through 2 million newly issued shares of DevvStream’s stock upon the company’s business combination with Focus Impact, after which the new entity, DevvStream Corp, will trade on Nasdaq under the symbol “DEVS.”
MSP is developing a carbon sequestration hub in northern Louisiana, capable of storing an estimated 260 million metric tons (MMT) of carbon dioxide (CO2).
The facility, located in a legacy oil and gas field, spans 425 square miles and is positioned to capture a significant portion of the 30 MMT of CO2 emitted annually by local sources.
Revenues from the project will be generated through federal tax credits under Section 45Q of the U.S. Internal Revenue Code, which offers $85 per ton of CO2 stored, DevvStream said in a statement earlier this week.
Relevant: Focus Impact Shareholders Express Support For DevvStream Transaction
Additional revenue streams are expected from the sale of voluntary carbon offset credits and CO2 storage fees.
Future earnings may also come from timberland sequestration, stream bed remediation, and wetlands restoration efforts.
The field, which has produced trillions of cubic feet of gas since the early 1900s, will now be converted into a carbon sequestration reservoir under an exclusive agreement with the field’s largest owner.
MSP is supported by a board of advisors that includes members of the Louisiana Oil and Gas Association and experts in carbon sequestration.
Sunny Trinh, CEO of DevvStream, praised the partnership for its potential to contribute to global CO2 reduction efforts and generate diverse revenue streams.
The acquisition is expected to close in line with DevvStream’s business combination and Nasdaq listing.
