First-of-its-kind stream project financing enables end-to-end reforestation with no upfront cost to landholders
SEATTLE, May 10, 2023 /PRNewswire/ -- Mast Reforestation, the leading vertically integrated reforestation company, today announced a $15 million financing agreement with Carbon Streaming Corporation to advance its post-wildfire reforestation projects throughout the American West. This first-of-its-kind project financing will cover the high upfront costs of reforestation projects, accelerating Mast's forest restoration work and enabling the company to serve more landowners affected by wildfires.
Under the stream financing agreement, Carbon Streaming will provide Mast with up to $15 million to advance its pipeline of post-wildfire reforestation projects. In addition to the $15 million project financing agreement, Carbon Streaming has invested $2 million in Mast.
"This innovative project financing is a scalable model that will help us get more trees in the ground, accelerating reforestation efforts in areas devastated by the rise in forest fires amplified by climate change," said Mast CEO and Founder, Grant Canary. Mast Reforestation's Chief Revenue Officer, Woolsey McKernon, describing the selection process stated, "Carbon Streaming has a proven track record of supporting projects in the nature-based voluntary carbon markets. Given that and our shared vision for scaling reforestation and carbon removal solutions, we feel this partnership is an ideal match."
"The $15 million stream financing agreement will allow Mast to accelerate the timelines of their crucial reforestation work and expand their services to wildfire-affected landowners across the American West at no upfront cost," said Justin Cochrane, CEO of Carbon Streaming. "This immediate impact for landowners combined with the strong demand for Mast's unique vertically-integrated reforestation model and high-quality carbon removal credits make this a win-win collaboration for us. The ultimate outcome will be more forests restored, more carbon dioxide removed from the atmosphere, and more carbon removal credits generated and sold. This is the kind of virtuous cycle that drives climate progress."
In exchange for project financing, Carbon Streaming will receive carbon removal credits generated by the projects. Carbon Streaming will leverage its sales team to sell these carbon removal credits delivered under the stream financing agreement and will collaborate with Mast's sales team to maximize opportunities. Sales proceeds will allow Mast to scale its no upfront cost reforestation services to meet the needs of the increasing number of landowners impacted by catastrophic wildfire. Carbon Streaming offers Mast its known capacity to fund projects, knowledge of nature-based voluntary carbon markets, its network, and experience with carbon credit sales.
The first project to be funded under the financing agreement is Sheep Creek Ranch, a more than 2,700 acre project in Montana that was severely burned in the 2021 Harris Mountain Fire. Mast's supply chain of seed and seedlings has enabled this project to move forward rapidly and the initial payment from Carbon Streaming will immediately support Mast's reforestation efforts.
Sheep Creek Ranch is a key part of the migration corridor connected to Yellowstone National Park. Restoring this forestland will keep this crucial migration corridor thriving for various species from Rocky Mountain elk to threatened species like grizzly bears and Canada lynx. Ecosystem services provided by Sheep Creek's restored forest also create the possibility for the project to generate biodiversity credits, an increasingly in-demand mechanism for rewarding protection of plant and animal species, and the benefits they provide to communities. Mast will begin planting at Sheep Creek Ranch once the snow melts this month.
Mast Reforestation aims to continue to grow its pipeline of reforestation projects using the model it has developed with Carbon Streaming by seeking out additional capital partners that see the value in the high-quality carbon removal credits that Mast's reforestation projects generate.
About Mast Reforestation:
As the leading end-to-end reforestation company in the U.S., Mast is on a mission to make reforestation scalable. As bigger and hotter fires destroy more forestland every year, Mast Reforestation provides faster and more resilient forest restoration at no cost to landowners. Mast provides everything from collecting native, diverse seed species to site prep, planting, and ongoing monitoring, using carbon financing to pay for it all. Mast Reforestation encompasses a portfolio of trusted companies: DroneSeed, Silvaseed, and Cal Forest, which bring a combined 150+ years of nursery experience and make Mast one of the largest suppliers of seed and seedlings in the U.S. Mast's investors include Alexis Ohanian's Seven Seven Six, Social Capital, DBL Partners, Marc Benioff's TIME Ventures, Elemental Excelerator, and more. To learn more, visit www.mastreforest.com.
Media Contact:
Mary Caroline Pruitt
press@mastreforest.com
About Carbon Streaming:
Carbon Streaming (NEO: NETZ) (OTCQB: OFSTF) aims to accelerate a net-zero future. It pioneered the use of streaming transactions, a proven and flexible funding model, to scale high-integrity carbon credit projects to advance global climate action and additional United Nations Sustainable Development Goals. This approach aligns Carbon Streaming's strategic interests with those of project partners to create long-term relationships built on a shared commitment to sustainability and accountability and positions Carbon Streaming as a trusted source for buyers seeking high-quality carbon credits. Carbon Streaming's focus is on projects that have a positive impact on the environment, local communities, and biodiversity, in addition to their carbon reduction or removal potential. Carbon Streaming has carbon credit streams and royalties related to over 20 projects around the world, including high-integrity carbon removal and avoidance projects from nature-based, agricultural, engineered and community-based methodologies.
Media Contact:
Amy Chambers
media@carbonstreaming.com
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SOURCE Mast Reforestation
