Philippines-based Sogod Energy has been approved by the municipality of Medellin to build a state-of-the-art solar power generation facility capable of producing more than 730 MWp annually, equating to over 1.2 million I-RECs per year
Sacramento, California--(Newsfile Corp. - November 29, 2024) - DevvStream Corp. (NASDAQ: DEVS) ("DevvStream" or the "Company"), a leading carbon credit project co-development and generation firm specializing in technology-based solutions, today announced an agreement (the "Agreement") transferring the ownership of all renewable and carbon assets generated by the Sogod Energy Inc. Medellin Solar Power facility (the "Facility") to DevvStream in the form of international renewable energy certificates ("I-RECs"). The 730-megawatt-peak ("MWp") Facility has been approved by the municipality of Medellin, Cebu as part of its "Medellin 2030" smart city master development plan and will be developed and implemented in three phases by Sogod Energy ("Sogod"), a renewable energy company based in the Philippines. Once completed, the total annual energy production capacity of the Facility will be an estimated 1,219,615 megawatt-hours ("MWh"), allowing the generation of over 1.2 million I-RECs per year. Entry into the I-REC market expands the Company into global energy transition markets and represents a new advancement in the Project Development category of DevvStream's three-tiered corporate strategy. The first phase of the Facility's development is anticipated to be complete within 6 months, with the first I-RECs being produced approximately a month thereafter.
I-RECs are tradable instruments that certify electricity was generated from renewable energy sources. Each I-REC represents 1 MWh of renewable electricity generated and injected into the grid. Organizations can purchase I-RECs to meet their renewable energy goals, support clean energy development, and report sustainability metrics, even if they cannot source renewable energy directly. The I-REC Standard is a globally recognized system that ensures the tracking and credibility of these certificates, helping organizations align with international frameworks like the Greenhouse Gas Protocol for Scope 2 emissions accounting.
According to the International Tracking Standard Foundation, the I-REC market has experienced significant growth in recent years, reflecting a global shift towards renewable energy adoption and sustainability commitments.
Issuance and Redemption Volumes: In 2022, the I-REC Standard issued approximately 199 million certificates, marking a 179% increase from the previous year. This upward trajectory continued into 2023, with 283 million certificates issued, representing a 42% growth compared to 2022. Redemptions also saw substantial growth, increasing by 81% to 176 million certificates in 2023.
First Half of 2024: The momentum persisted into 2024, with 188 million certificates issued in the first half of the year, a 17% increase over the same period in 2023. Redemptions during this period grew by 58%, totaling 162 million certificates.
Strong Demand: Members of the Climate Group RE100-a global initiative that includes more than 400 influential corporations-have committed to using 100% renewable electricity throughout their operations. If 100% renewable electricity proves to be unfeasible, these companies have committed to leveraging financial instruments such as I-RECs. In certain regions, such as the Philippines, there is insufficient renewable energy to meet the RE100 commitment, resulting in stronger demand and consistently higher price points.
"While our roots are in carbon, DevvStream maintains a diverse asset portfolio, representing a range of environmental and energy transition assets," said Sunny Trinh, CEO of DevvStream. "I-RECs present a new opportunity for diversification and growth, particularly in the Asian segment, which accounts for approximately 70% of the world's total installed solar capacity. To penetrate this market, we are starting with ASEAN member states, where demand is strong and prices are correspondingly higher. The rise of the I-REC market in Asia overall has been significant in recent years, offering DevvStream a strong path toward revenue while broadening the Company's environmental impact and global reach. I'd like to extend my appreciation to Scott Harrington and his team at DevvStream Asia, which was instrumental in securing this contract as well as building our overall project pipeline for the Asian renewable energy market based on years of onsite work. We're proud to partner with Sogod on this critical solar infrastructure project and look forward to additional collaboration on future projects in Bohol, Batangas, and beyond."
"Sogod Energy Inc. aims to be the industry leader in grid-connected solar power plant development," said Juan Carlo Casem, President and CEO of Sogod. "To help monetize our latest projects, we needed a partner who was not only an expert in the generation of high-quality environmental assets, but also an industry leader that operates with transparency, integrity, and a strong vision to improve the world. DevvStream was the obvious choice. We look forward to a long and fruitful partnership as we continue developing the renewable energy infrastructure that the Philippines needs in order to preserve its natural beauty and heritage."
About DevvStream
Founded in 2021, DevvStream is a leading authority in the use of technology in carbon project development. The Company's mission is to create alignment between sustainability and profitability, helping organizations achieve their climate initiatives while directly improving their financial health.
With a diverse approach to the carbon market, DevvStream operates across three strategic domains: (1) an offset portfolio consisting of nature-based, tech-based, and carbon sequestration credits for immediate sale to corporations and governments seeking to offset their most difficult-to-reduce emissions; (2) project investment, acquisitions, and industry consolidation to extend the company's reach, allowing it to become a full end-to-end solutions provider; and (3) project development, where the company serves as project manager for eligible activities such as EV charging in exchange for a percentage of generated credits.
