BluSky Carbon Signs Letter of Intent for Biochar Project in Arkansas

BluSky Carbon has signed a Letter of Intent (LOI) for its second large-scale biochar project. The project, known as AR2, is based in Northwest Arkansas. The Vancouver-based company is expected to obtain $192 million in revenue for the project's duration.

AR2 Project Overview

The AR2 project aims to produce 70,000 tons of biochar annualy over the next decade. BluSky Carbon has secured a fixed sales price of $275 per ton. Sales will play a role in the company's projected revenue. However the executiion of the project relies on securing necessary funds and converting the Letter of Intent (LOI) into a formal agreement.

For the project, the company intends to employ five Vulcan Heavy biomas pyrolysis systems for the production of biochar. These systems will convert biomass into carbon-rich biochar, which has many benefits for soil health, water retention and carbon sequestration.

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Strategic Partnerships and Land Lease

BluSky Carbon has obtained a 25 year land lease offer for the AR2 project. In addition, the company is reportedl yin talks to negotiate the purchase of nearly 500,000 tons of biomass feedstock annually. These agreements can prove detrimental to securing financing and finalizing sales contracts.

Biochar and Its Climate Impact

Biochar is a stable form of carbon. It is produced by heating organic material in an oxygen-limited environment, which is known as pyrolysis. Biochar plays a crucial role in mitigating climate change by sequestering CO2 in the soil for over thousands of years. A plus side to biochar is that it increases soil fertility.

Biochar helps businesses and farmers take meaningful steps toward sustainable carbon reduction by preventing carbon emissions and supporting landlords' remediation efforts.

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BluSky’s Commitment to Climate Goals

BluSky’s CEO, Will Hessert, emphasized the growing demand for sustainable carbon removal technologies. He noted that increasing inquiries and partnerships highlight the company’s expanding impact on global climate goals.

With the AR2 biochar project, BluSky Carbon is advancing carbon sequestration efforts and driving progress toward a more sustainable future.