Carbon-credit developer Boreal Carbon raises $4 million in seed financing

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This article was published 18/10/2021 (1677 days ago), so information in it may no longer be current.

Carbon-credit developer Boreal Carbon Corp. has raised $4 million to help acquire and manage forestry projects across North America.

The Toronto-based company, founded earlier this month, hopes to build a portfolio of forestry projects that will generate carbon credits by reducing greenhouse gases. Carbon credits, one part of the “cap-and-trade” programs adopted by regional governments across North America, are generated by companies that cut emissions and then sell the credits to other companies. The system is designed to encourage companies to reduce their carbon footprint while forcing other polluters to pay for excess emissions.

Boreal’s capital raise was led by Canadian holding company Senvest Capital Inc. and Osmington Inc., a private firm owned by Canadian billionaire David Thomson.

The group of investors also included NordStar Capital, which owns the Toronto Star. Paul Rivett, Torstar chair and co-owner, is chairman of Boreal.

“As the world moves towards a net zero GHG economy, carbon credits will play an integral role to facilitate governments and corporations in meeting their GHG emissions targets,” said Boreal CEO Brendon Abrams in a press release.

“Combined with the growing influence of ESG investing, an increase in the cost to pollute, and the prospect for significant regulatory changes in Canada and the United States, we believe the value of high-quality verifiable carbon credits will increase over the coming years.”

The $4-million investment will allow Boreal to fill key company positions, including a chief forester, carbon-credit analysts and investment analysts, as well as to source potential acquisition opportunities, Abrams told the Star.

“These projects are quite capital intensive, because we’re essentially buying land where forestry projects operate,” he said. “Each project will be in the multiple of millions of dollars.”

Abrams said the company will likely lead a second round of financing early next year, depending on their acquisition prospects.

“This is an exciting day for Boreal as we begin our journey towards becoming a leading carbon credit developer through the acquisition and management of forestry projects in North America. We have assembled a strong leadership team, and with the support of our investors, we are well-positioned to execute on our vision for the benefit of all stakeholders,” said Rivett.

Jacob Lorinc is a Toronto-based reporter covering business for the Star. Reach him via email: jlorinc@thestar.ca