DevvStream Holdings Inc, a firm in carbon credit project co-development and technology-driven solutions, has announced a memorandum of understanding (MOU) to acquire a 50% equity stake in Monroe Sequestration Partners LLC (MSP), a subsidiary of Crestmont Investments LLC.
In exchange for this stake, DevvStream will issue 2 million newly authorized shares of common stock to MSP as part of its planned business combination with Focus Impact, which will result in a new public company expected to be named DevvStream Corp. This entity is anticipated to begin trading on Nasdaq under the ticker symbol “DEVS.”
MSP, funded and managed by Crestmont, is focused on developing one of the largest carbon sequestration reservoirs in the United States within a legacy oil and gas field in northern Louisiana.
This area, covering 425 square miles across three parishes, is geologically suited for carbon storage and has an estimated capacity of 260 million metric tons (MMT) of CO2.
Also read: Vaulted Deep Achieves Milestone with Initial Deliveries of Carbon Credits
The project aims to capture a significant portion of the 30 million metric tons of CO2 emitted from local sources each year.
Revenues from the Monroe Sequestration Partners LLC (MSP) project are projected to be generated within two years through federal tax credits for carbon sequestration, commonly known as “45Q” credits.
Named after Section 45Q of the Internal Revenue Code, these credits currently sell for $85 per tonne of CO2 stored. In addition to the 45Q credits, the project is expected to generate revenue from the sale of voluntary carbon offset credits and storage fees associated with the CO2 sequestered in the converted reservoir.
Other potential income sources may include timberland sequestration, stream bed remediation, and wetlands restoration.
The MSP field has been in production since the early 1900s, yielding several trillion cubic feet of gas.
Also read: Experts Warn Against Forestry Australia’s Proposal to Remove Trees for Carbon Credits
MSP recently secured an exclusive agreement with the field’s largest owner and operator to transition the site into a carbon sequestration reservoir.
MSP benefits from a seasoned advisory board that includes members from the Louisiana Oil and Gas Association (LOGA) and its Carbon Capture and Utilization Storage committee to support its operations.
This board comprises experts from leading energy law firms, carbon project developers, independent landowners, and experienced financial and industry professionals specializing in carbon sequestration.