Singapore Firms Ink Carbon Credits Offtake Agreement

Singapore-based noco-noco, a Nasdaq-listed decarbonisation solutions provider, and LNG Alliance, an integrated liquified natural gas terminals infrastructure project development, sourcing, and supply company, have signed a non-binding in-principal agreement, paving the way for LNG Alliance to potentially purchase carbon credits being developed by noco-noco.

The announcement is a major breakthrough for noco-noco as it prepares to develop over 30 contracted carbon abatement projects secured by its subsidiary noco-noco Australia.

The global carbon credit market traded value was US$978.56 billion in 2022. Under the UN’s Framework Convention on Climate Change Paris Agreement protocols, the global carbon credits market is expected to reach US$2.68 trillion by 2028, becoming a significant route to sustainability transitions.

The proposed offtake agreement between the two Singapore-based companies would span five years and allow LNG Alliance to buy between one and two million carbon credits annually from noco-noco, marking the first such offtake agreement for noco-noco.

Located across Papua New Guinea (PNG), noco-noco’s REDD+ deforestation avoidance projects are being developed over 5.3 million hectares of land and are estimated to produce almost 159 million carbon credits annually. Each carbon credit represents one metric ton of carbon dioxide or carbon dioxide equivalent.

When developed, the carbon credits will be used to offset noco-noco’s unavoidable emissions across its business verticals and will also be made available to third parties looking to purchase offsets towards their own decarbonization targets.

Masataka Matsumura, CEO of noco-noco, commented: “Global interest and demand in quality carbon credits has surged in recent years as the benefits and wider impacts of these in meeting sustainability goals become apparent. We are excited to enter our first potential offtake agreement with LNG Alliance.”