Acadian Timber Corp. provided an update on its ongoing carbon credit project. During 2021, Acadian executed its first carbon development and marketing agreement to develop voluntary carbon credits on the portion of its Maine Timberlands that is subject to a working forest conservation easement.
This project commits Acadian to balancing harvest and growth, and requires long term planning, annual reporting, periodic carbon inventory verification, and maintenance of the existing sustainable forestry certification. Preliminary credit volumes have been submitted to third-party verifiers, who will audit the model. Accordingly, the final issued volumes could vary from the estimates presented.
Under the current timeline, credits are expected to be registered on the American Carbon Registry in the fourth quarter of 2022, with the potential for sales to be realized immediately thereafter. The impact to Acadian's financial results is subject to the successful marketing of the credits and to the timing of, and prices obtained from, contracts negotiated with third parties, which are not yet in place. After the share of proceeds allocated to the project developer and project related expenses, Acadian is expected to receive approximately 84% of gross revenues from any sale of the carbon credits.