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Sadot Group Takes Stake in High-Integrity Blue Carbon Project in Indonesia - Expanding its Commitment to Decarbonizing Global Supply Chains

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Sadot Group (NASDAQ:SDOT) has acquired a 37.5% stake in Special Development Group (SDG), marking its entry into Indonesia's blue carbon market. The project, located in the Riau Islands, focuses on restoring and protecting peatland and mangrove ecosystems in partnership with 11 indigenous coastal communities.

The initiative is expected to generate 1.1-1.2 million verified carbon credits in its first issuance cycle. The project will be validated under VM0007 (REDD+) and VM0033 methodologies. According to McKinsey and BCG research, nature-based carbon credit prices could increase 3x-10x by 2030.

The investment aligns with Sadot's strategy to decarbonize commodity supply chains and strengthen its net-zero roadmap while supporting its grain, protein, and logistics operations.

Sadot Group (NASDAQ:SDOT) ha acquisito una quota del 37,5% in Special Development Group (SDG), segnando il suo ingresso nel mercato del carbonio blu in Indonesia. Il progetto, situato nelle Isole Riau, si concentra sul ripristino e la protezione degli ecosistemi di torbiere e mangrovie in collaborazione con 11 comunità costiere indigene.

L'iniziativa dovrebbe generare 1,1-1,2 milioni di crediti di carbonio verificati nel suo primo ciclo di emissione. Il progetto sarà validato secondo le metodologie VM0007 (REDD+) e VM0033. Secondo ricerche di McKinsey e BCG, i prezzi dei crediti di carbonio basati sulla natura potrebbero aumentare di 3-10 volte entro il 2030.

L'investimento è in linea con la strategia di Sadot di decarbonizzare le catene di approvvigionamento delle materie prime e rafforzare il proprio percorso verso il net-zero, supportando al contempo le sue attività nei settori dei cereali, delle proteine e della logistica.

Sadot Group (NASDAQ:SDOT) ha adquirido una participación del 37,5% en Special Development Group (SDG), marcando su entrada en el mercado de carbono azul de Indonesia. El proyecto, ubicado en las Islas Riau, se centra en restaurar y proteger los ecosistemas de turberas y manglares en colaboración con 11 comunidades costeras indígenas.

Se espera que la iniciativa genere 1,1-1,2 millones de créditos de carbono verificados en su primer ciclo de emisión. El proyecto será validado bajo las metodologías VM0007 (REDD+) y VM0033. Según investigaciones de McKinsey y BCG, los precios de los créditos de carbono basados en la naturaleza podrían aumentar de 3 a 10 veces para 2030.

La inversión se alinea con la estrategia de Sadot para descarbonizar las cadenas de suministro de materias primas y fortalecer su hoja de ruta hacia la neutralidad de carbono, apoyando sus operaciones en granos, proteínas y logística.

Sadot Group (NASDAQ:SDOT)는 인도네시아의 블루 카본 시장에 진출하며 Special Development Group(SDG)의 37.5% 지분을 인수했습니다. 이 프로젝트는 리아우 제도에 위치해 있으며, 11개 원주민 해안 공동체와 협력하여 이탄지와 맹그로브 생태계를 복원하고 보호하는 데 중점을 두고 있습니다.

이 사업은 첫 발행 주기에서 110만~120만 검증된 탄소 배출권을 생성할 것으로 예상됩니다. 프로젝트는 VM0007(REDD+) 및 VM0033 방법론에 따라 검증될 예정입니다. 맥킨지와 BCG 연구에 따르면 자연 기반 탄소 배출권 가격은 2030년까지 3배에서 10배까지 상승할 수 있습니다.

이번 투자는 Sadot의 원자재 공급망 탈탄소화 전략과 넷제로 로드맵 강화를 목표로 하며, 곡물, 단백질 및 물류 사업을 지원합니다.

Sadot Group (NASDAQ:SDOT) a acquis une participation de 37,5% dans Special Development Group (SDG), marquant son entrée sur le marché indonésien du carbone bleu. Le projet, situé dans les îles Riau, vise à restaurer et protéger les écosystèmes de tourbières et de mangroves en partenariat avec 11 communautés côtières indigènes.

Cette initiative devrait générer 1,1 à 1,2 million de crédits carbone vérifiés lors de son premier cycle d'émission. Le projet sera validé selon les méthodologies VM0007 (REDD+) et VM0033. Selon les recherches de McKinsey et BCG, les prix des crédits carbone basés sur la nature pourraient augmenter de 3 à 10 fois d'ici 2030.

L'investissement s'inscrit dans la stratégie de Sadot visant à décarboner les chaînes d'approvisionnement en matières premières et à renforcer sa feuille de route vers la neutralité carbone, tout en soutenant ses activités dans les secteurs des céréales, des protéines et de la logistique.

Sadot Group (NASDAQ:SDOT) hat einen 37,5%-Anteil an Special Development Group (SDG) erworben und damit seinen Einstieg in den Blue-Carbon-Markt Indonesiens markiert. Das Projekt befindet sich auf den Riau-Inseln und konzentriert sich auf die Wiederherstellung und den Schutz von Torf- und Mangrovenökosystemen in Zusammenarbeit mit 11 indigenen Küstengemeinschaften.

Die Initiative wird voraussichtlich 1,1 bis 1,2 Millionen verifizierte Kohlenstoffgutschriften im ersten Ausgabzyklus generieren. Das Projekt wird nach den Methoden VM0007 (REDD+) und VM0033 validiert. Laut Forschungen von McKinsey und BCG könnten die Preise für naturbasierte Kohlenstoffgutschriften bis 2030 um das 3- bis 10-fache steigen.

Die Investition entspricht der Strategie von Sadot, Lieferketten für Rohstoffe zu dekarbonisieren und seine Netto-Null-Roadmap zu stärken, während gleichzeitig die Getreide-, Protein- und Logistikgeschäfte unterstützt werden.

Positive
  • Strategic entry into high-growth blue carbon market with potential 3x-10x price increase by 2030
  • Expected generation of 1.1-1.2 million verified carbon credits
  • Partnership with 11 indigenous communities strengthens ESG credentials
  • Project will help offset company's operational emissions
Negative
  • Initial carbon credit generation timeline not specified
  • Financial terms of the stake acquisition not disclosed

Insights

Sadot's 37.5% stake in Indonesian carbon project represents strategic diversification with potential upside from rising carbon prices.

Sadot Group's acquisition of a 37.5% stake in the Special Development Group marks a calculated diversification into the growing carbon credits market. The investment positions the company to capitalize on the projected 3x-10x price increase for high-quality nature-based carbon credits by 2030, as forecasted by McKinsey and BCG.

The project's expected generation of 1.1-1.2 million carbon credits represents significant potential revenue. Validation under VM0007 and VM0033 methodologies ensures these will be premium-grade credits, commanding higher market prices than lower-quality alternatives. The focus on peatland and mangrove ecosystems is particularly strategic, as these biomes sequester carbon at rates 3-5 times higher per hectare than terrestrial forests.

Beyond direct revenue from credit sales, this investment creates operational synergies across Sadot's existing agricultural supply chain. The company can use a portion of these credits to offset its own emissions, potentially reducing compliance costs as carbon regulations tighten globally. This vertical integration of carbon offsetting represents a forward-thinking approach to regulatory risk management.

The partnership with 11 indigenous coastal communities adds social impact credentials that enhance marketability to corporate buyers increasingly scrutinizing the co-benefits of carbon projects. As major corporations accelerate net-zero commitments, demand for high-integrity credits with strong community engagement components continues to outpace supply, creating favorable pricing dynamics for early movers like Sadot.

  • Sadot finalized all the documentation required for its 37.5% stake ownership in the Special Development Group (SDG)

  • Expected to issue 1.1-1.2 million verified carbon credits from peatland and mangrove which are among the world's most effective carbon sinks

  • Partnership reinforces Sadot's role as a next-generation agri-food company - combining operational excellence with environmental innovation to drive sustainable value

  • McKinsey and BCG forecast nature-based credit prices could increase 3x-10x by 2030

BURLESON, TX / ACCESS Newswire / July 23, 2025 / Sadot Group Inc. (NASDAQ:SDOT), ("Sadot Group", "Sadot" or the "Company"), an emerging player in the global Agri-food supply chain, announced today its strategic entry into a landmark nature-based carbon project in Indonesia's Riau Islands - marking a significant milestone in its mission to decarbonize commodity supply chains through scalable, nature-positive solutions.

Sadot received its 37.5% equity stake in the Special Development Group (SDG) - the local entity holding full project rights in formal partnership with 11 indigenous coastal communities across the Riau archipelago. The project focuses on the restoration and long-term protection of peatland and mangrove ecosystems, among the world's most effective natural carbon sinks.

A share of these credits will also be used to directly offset emissions from Sadot's operations, further strengthening its net-zero roadmap.

"This project brings operational synergy to Sadot while supports our decarbonization goals across our grain, protein, and logistics verticals," said Chagay Ravid, CEO of Sadot Group. "Nature-based carbon is becoming central to how supply chains will be financed, regulated, and measured in the years ahead, and we are exploring making it a core part of our operational and financial strategy."

Recent research by McKinsey & Company and BCG indicates that prices for high-quality, nature-based carbon credits could rise by 3x to 10x by 2030, driven by increasing corporate demand, regulatory tightening, and growing scrutiny around offset integrity.

SDG has advised that the initiative is expected to generate between 1.1 and 1.2 million high-integrity carbon credits in its first issuance cycle, verified under internationally recognized methodologies. Validation is planned under the VM0007 (REDD+) and VM0033 (Tidal Wetlands Restoration) methodologies, ensuring full compliance with the highest global standards for nature-based carbon projects.

This move builds on Sadot's broader ESG strategy, which includes regenerative farming pilots, lower-emission logistics, and traceable sourcing models. By embedding nature-based solutions at the core of its operations, Sadot is advancing a future where food production and environmental restoration go hand in hand.

About Sadot Group Inc.

Sadot Group Inc. has rapidly established itself as an emerging player in the global food supply chain. Sadot Group provides innovative and sustainable supply chain solutions that address the world's growing food security challenges.

Sadot Group currently operates within key verticals of the global food supply chain including global agri-commodity origination and trading operations for food/feed products such as soybean meal, wheat and corn, and farm operations producing grains and tree crops in Southern Africa.

Sadot Group connects producers and consumers across the globe, sourcing agri-commodity products from producing geographies such as the Americas, Africa and the Black Sea and delivering to markets in Southeast Asia, China and the Middle East/North Africa region.

Sadot Group is headquartered in Burleson, Texas with subsidiary operations throughout the United States, Brazil, Canada, Colombia, India, Israel, Singapore, Ukraine, United Arab Emirates, South Korea and Zambia. For more information, please visit www.sadotgroupinc.com.

Forward-Looking Statements

This press release may include "forward-looking statements" pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. To the extent that the information presented in this press release discusses financial projections, information, or expectations about our business plans, results of operations, products, or markets, or otherwise makes statements about future events, such statements are forward-looking. Such forward-looking statements can be identified by the use of words such as "should", "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," and "proposes." Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in documents that we file from time to time with the SEC. Forward-looking statements speak only as of the date of the document in which they are contained, and Sadot Group, Inc., does not undertake any duty to update any forward-looking statements except as may be required by law.

Investor Relations:

E - IR@sadotco.com

SOURCE: Sadot Group Inc.



View the original press release on ACCESS Newswire

FAQ

What stake did Sadot Group (SDOT) acquire in the Indonesian carbon project?

Sadot Group acquired a 37.5% stake in Special Development Group (SDG), which holds project rights for carbon initiatives in Indonesia's Riau Islands.

How many carbon credits will Sadot's Indonesian project generate?

The project is expected to generate between 1.1 and 1.2 million high-integrity carbon credits in its first issuance cycle.

What is the projected growth for nature-based carbon credit prices by 2030?

According to McKinsey and BCG research, prices for high-quality, nature-based carbon credits could increase by 3x to 10x by 2030.

What validation methodologies will be used for Sadot's carbon credits?

The project will be validated under VM0007 (REDD+) and VM0033 (Tidal Wetlands Restoration) methodologies.

How does this investment align with Sadot Group's business strategy?

The investment supports Sadot's decarbonization goals across its grain, protein, and logistics verticals while advancing its ESG strategy and net-zero roadmap.
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