Site capable of storing an estimated 260 MMT of CO2
Company will partner with Monroe Sequestration Partners to generate both 45Q federal tax credits and voluntary offset credits
Company owns a 50% equity stake in the facility
Sacramento, California--(Newsfile Corp. - November 19, 2024) - DevvStream Corp. (NASDAQ: DEVS) ("DevvStream" or the "Company"), a leading carbon credit project co-development and generation firm specializing in technology-based solutions, and Monroe Sequestration Partners LLC ("MSP"), a subsidiary of Crestmont Investments LLC, today announced a progress update regarding the development of the previously announced MSP carbon sequestration facility (the "Monroe Project"). Designed to leverage the carbon storage capabilities of a 425-square-mile legacy oil and gas field located in northern Louisiana, the Monroe Project has the potential to become one of the largest carbon sequestration reservoirs in the United States, with an estimated total storage capacity of 260 million metric tons of CO2.
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Monroe Project Update
- Advanced engineering and geologic assessments are uncovering significant carbon emission sources, aligning with the objectives of the Louisiana Department of Natural Resources and the Federal CarbonSAFE program.
- The Monroe Project represents an ideal candidate for CarbonSAFE funding, as the program seeks to support projects with robust geologic potential and scalable development strategies.
- Multiple surface locations have been identified and prioritized for initial monitoring and injection wells, demonstrating the project's readiness for implementation.
"The Monroe Project represents a key component of DevvStream's overarching investment strategy," said Sunny Trinh, CEO of DevvStream. "The project has significant environmental impact potential as well as substantial revenue potential via the generation of 45Q credits and voluntary carbon offset credits, as well as storage fees from accepted CO2 to be sequestered. We are proud to work with the Louisiana Oil and Gas Association, the state of Louisiana, and MSP, and we are thrilled to see development moving forward as planned."
"Louisiana is committed to carbon capture and sequestration not only for the environmental benefits, but also because it provides a new opportunity for our oil and gas producers to expand their skilled workforce and existing resources," said Bryan Hanks, board member of the Louisiana Oil and Gas Association. "By transitioning to carbon storage, we're giving these industries a path to remain viable in a cleaner energy future, helping preserve jobs, stimulate the local economy, and leverage decades of expertise in subsurface operations. Our initiative alongside MSP and DevvStream allows Louisiana to support both economic resilience and environmental progress."
Key Details About the Monroe Project
- Strategic Location: Located in Northern Louisiana's with proximity to major CO2 emitters, creating efficient access for capturing and storing emissions.
- Economic & Environmental Impact: Supported by 45Q federal tax credits-currently sold for $85 per tonne of CO2 stored-and the voluntary carbon market, the Monroe Project aims to deliver both significant financial returns and environmental benefits.
- Local Partnerships: Collaboration with Louisiana's oil and gas industry leaders, engineering firms, and regulatory experts creates a robust foundation for project execution.
- Job Creation and Regional Benefits: Expected to stimulate the local economy by creating jobs, supporting local businesses, and contributing to sustainable economic growth in Louisiana.
- Carbon Neutral Goals: The Monroe Project is positioned as a flagship initiative in the global push toward net-zero emissions, making a substantial contribution to emissions reduction goals.
- Future Expansion Potential: With over 500,000 acres of potential storage area, the project has ample space for additional CO2 disposal wells and future capacity growth.
Benefits of Primacy in Louisiana
- Regulatory Advantage - Class VI Permit Primacy: Louisiana's primacy to issue Class VI permits gives it a significant edge over other states in carbon sequestration. This authority means that Louisiana can approve carbon storage projects directly through state-level regulators rather than waiting for federal EPA approval, which is often a lengthy process.
- Faster Project Approvals: With primacy, Louisiana can streamline the permitting process for Class VI wells, reducing the time it takes for projects to begin. This faster approval process allows carbon sequestration initiatives to move from planning to execution more quickly than in states without this authority.
- Lower Costs and Greater Certainty: By handling permits locally, Louisiana reduces costs and regulatory uncertainty for carbon storage developers, making it an attractive location for investment compared to states relying on federal approvals.
- Enhanced Project Scalability: Primacy allows Louisiana to scale up carbon sequestration efforts more effectively, as the state can manage and process multiple permit requests in response to demand, supporting larger and more ambitious projects.
- Supportive State Incentives: Louisiana offers incentives for carbon sequestration, making it easier to develop and sustain projects within the state.
About DevvStream
Founded in 2021, DevvStream is a leading authority in the use of technology in carbon project development. The Company's mission is to create alignment between sustainability and profitability, helping organizations achieve their climate initiatives while directly improving their financial health.
With a diverse approach to the carbon market, DevvStream operates across three strategic domains: (1) an offset portfolio consisting of nature-based, tech-based, and carbon sequestration credits for immediate sale to corporations and governments seeking to offset their most difficult-to-reduce emissions; (2) project investment, acquisitions, and industry consolidation to extend the company's reach, allowing it to become a full end-to-end solutions provider; and (3) project development, where the company serves as project manager for eligible activities such as EV charging in exchange for a percentage of generated credits.
For more information, please visit www.devvstream.com.
About Monroe Sequestration Partners
Monroe Sequestration Partners LLC is a Delaware limited liability company formed by Crestmont Investments that holds agreements and intellectual property related to the conversion of a large, legacy gas field into a carbon sequestration reservoir and hub. Managed by members of the Crestmont executive team on an interim basis, Monroe Sequestration Partners is supported by a board of advisors that includes members of the Louisiana Oil and Gas Association, as well as veteran financial and industry operators and engineers.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this news release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and generally relate to future events, trends or DevvStream's future financial or other performance metrics. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expect", "intend", "will", "estimate", "anticipate", "believe", "predict", "potential" or "continue", or the negatives of these terms or variations of them or similar terminology. These forward-looking statements include statements regarding DevvStream's intentions, beliefs, projections, outlook, analyses and current expectations concerning, among other things, DevvStream's ability to continue as a going concern and to realize the benefits of its recently completed business combination, DevvStream's ability to remain listed on Nasdaq, the volatility of the market price and the liquidity of DevvStream's common shares, the impact from future regulatory, judicial, legislative or regulatory changes in DevvStream's industry, including, but not limited, in Louisiana, the trends in the carbon credit markets, future performance and anticipated financial impacts of certain transactions by DevvStream or others, the growth and value of the global carbon credit market traded value, the potential of carbon credits to provide carbon emission reductions and reduce carbon emissions to limit global warming, the tax credits generated by certain carbon related projects, estimate C02 storage capacities or areas of different projects in which DevvStream is investing, including the Monroe Project, or DevvStream's opportunity pipeline and the ability of such opportunities to generated credits each year, or the growth of the international renewable energy certificates, are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by DevvStream and its management are inherently uncertain and subject to material change. Given these risks, uncertainties, and other factors, you should not place undue reliance on these forward-looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties.
These forward-looking statements are expressed in good faith, and DevvStream believes there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and DevvStream is under no obligation, and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in filings made by, or to be made by, DevvStream from time to time with the SEC. This news release is not an offer to sell or the solicitation of an offer to buy, any securities of DevvStream and this news release is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in DevvStream. All subsequent written and oral forward-looking statements concerning DevvStream or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above.
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