Star Royalties Ltd. Expands Its Portfolio with U.S. Forest Carbon Offset Royalties

TORONTO, ON / ACCESSWIRE / April 25, 2024 / Star Royalties Ltd., through its joint venture Green Star Royalties, has finalized a royalty agreement with NativState LLC for a series of Improved Forest Management (IFM) projects in the Southeastern United States. This $5.6 million investment will allow Green Star to acquire revenue royalties on carbon offsets for a period of 20 years.

The strategic investment includes a significant royalty on Arkansas-based Project ACR 783, marking Green Star's initial venture into carbon offset-issuing royalties. Green Star expects the delivery of approximately 180,000 carbon offsets in 2024 alone, aimed at boosting its North American carbon offset solutions.

This collaboration with NativState, a company managing over 300,000 acres of forest land, enhances Green Star’s portfolio by integrating high-integrity IFM projects and supporting voluntary carbon markets. The investment promises significant returns, aligning with the increasing demand and pricing trends for premium North American carbon offsets, which currently range from approximately $13-15 per ton CO2e to over $20 per ton CO2e for avoidance and removal carbon offsets respectively.

Alex Pernin, CEO of Star Royalties, emphasized the deal's alignment with conservation and economic returns, expecting it to transition Green Star into a phase of free cash flow generation. Stuart Allen of NativState highlighted the importance of this partnership in empowering small and medium forest landowners to tap into global carbon markets, thereby promoting sustainable forest management and biodiversity.