Verde is at the forefront of carbon capture The fertilizer industry is rebounding after a Q3 dip, with global demand picking up. #Potash prices are on the rise, signaling a promising 2024.
Verde AgriTech (TSX: NPK / OTC: VNPKF) is at the forefront of carbon capture through Enhanced Rock Weathering, potentially earning $15M annually from carbon credits.
Verde is leading sustainable innovation, initiating field studies to assess the potential of its carbon capture project. A third-party study suggests each tonne of Verde's products could extract 120 kg of carbon dioxide through Enhanced Rock Weathering (ERW), a process accelerating the natural weathering of rocks to sequester carbon.
Key Highlight:
Verde's existing facilities can generate up to 300 Kt of carbon credits annually, equating to a remarkable US$15M in potential revenue. Ongoing discussions with various parties for the sale of carbon credits underscore the company's commitment to sustainability.
Q3 posed challenges, with revenue down 66% YoY due to lower product sales (43% YoY drop) and declining prices (40% YoY). Fertilizer demand faced headwinds in the first nine months due to sluggish global GDP growth, elevated interest rates, and volatile fertilizer prices.
- Encouraging Signs: Despite challenges, there's a positive note as fertilizer prices stabilize. Potash prices in Brazil, though down 45% YoY, show a promising 5% QoQ increase to $343/t, hinting at potential recovery in 2024.
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