Verde Secures 10-Year Biochar Commercialization Deal with Ergon Asphalt

summarizeSummary

Verde Resources' subsidiary signed a 10-year commercial agreement with Ergon Asphalt, the largest U.S. asphalt supplier, to commercialize engineered biochar products, including revenue sharing, royalties, and carbon credit monetization.

check_boxKey Events · M&A and Partnerships · VRDR

• 10-Year Commercial Agreement

  Verde Renewables entered a Master Commercialization and Collaboration Agreement (MCCA) with Ergon Asphalt & Emulsions, the largest U.S. asphalt supplier, for a 10-year initial term.

• Preferred Biochar Vendor

  Verde Renewables will act as a preferred vendor of engineered biochar for Ergon-Verde Products, starting with a cold mix road paving product.

• Revenue & Royalty Streams

  The agreement includes net revenue sharing from biochar sales to Ergon's customers and a cash royalty per gallon of Ergon's emulsion product sold in connection with Project #1.

• Carbon Credit Monetization

  Verde will manage and share 50/50 in carbon removal credits generated from Ergon-Verde Products.

auto_awesomeAnalysis · VRDR · Energy & Transportation

This 8-K details a 10-year Master Commercialization and Collaboration Agreement between Verde Renewables, a subsidiary of Verde Resources, and Ergon Asphalt & Emulsions, the largest asphalt supplier in the U.S. The agreement establishes Verde as a preferred biochar vendor, includes revenue sharing from biochar sales, royalties per gallon of Ergon's emulsion product, and a 50/50 split of carbon credits generated. This formalizes a previously announced partnership, providing critical long-term revenue streams and market access for Verde's sustainable biochar products. The filing also includes an amendment to Verde's supply agreement with Biochar Solutions, ensuring supply to meet the new demand.