Rotterdam, The Netherlands – 8 July, 2021 - SilviCarbon, a global leader in nature-based Carbon Dioxide Removals (CDRs), co-owned by VARO Energy (51%) has confirmed the acquisition of 100% of Stora Enso’s holding in the Laos Plantation AB. The transaction is expected to conclude by the end of September, 2021.
With this acquisition SilviCarbon launches its first plantation project, taking the development of this plantation in a new direction as part SilviCarbon's long term strategy to develop an upstream wood and carbon position.
“We believe that building plantations on degraded land is the best and fastest way to remove large amounts of CO2 from the atmosphere, storing it in living biomass. By owning and managing a growing and living forest we are creating a genuine and legitimate position in the carbon value chain,” said Michael Knap, SilviCarbon co-founder and director.
SilviCarbon projects that the total amount of CO2 removed and stored at the Laos plantation is over 5 million tons over the project’s lifetime.
The plantation, located in the Savannaketh and Saravane provinces, comprises an existing 3.400 ha agroforestry plantation and a concession for an additional 31.600 ha future plantation, totaling 35.000ha of fast growing Eucalyptus trees mixed with agriculture, mainly mountain rice, and conservation areas. It was formerly developed by Stora Enso as a competitive raw materials base that explored best practices in sustainable plantation operations, conservation and emphasized local community engagement.
The project will build on the legacy of the plantation’s former operator by creating new forest on degraded land, while respecting all sustainability dimensions – social, environmental and economical. Revenues will be generated from timber sales and the sale of carbon removal credits through the planting of new trees, avoiding further deforestation in conservation areas.
SilviCarbon will develop the plantation in close coordination with local communities that profit through improved agricultural practices allowing them to abandon their traditional migrating slash and burn practices, as well as provide direct funding for community development.
The area was heavily bombed during the Vietnam war, as a result of which the full project area is being cleared of bombs, giving back the full utilization potential of the region to the local communities and the country.
With an abundance of expertise in carbon, forestry and agro-forestry markets, SilviCarbon purposefully selects and participates in scalable afforestation, reforestation and regenerative farming projects that provide tangible long-term economic and social benefits.
SilviCarbon matches reforestation projects and carbon market participants to remove carbon from the atmosphere for the long- term. With extensive experience in plantations, forestry products and carbon markets, SilviCarbon is well positioned to develop carbon financing solutions for large-scale forestry projects and provide nature-based CDRs to companies seeking to meet their net zero climate targets.
For more information on SilviCarbon, please go to www.silvicarbon.com