If You Invested in BluSky Carbon Inc (BSKCF)

BluSky Carbon Inc. (OTCQB: BSKCF) is described as an entry into the carbon removal clean technology sector. According to company disclosures, BluSky positions itself as a renewable energy company that focuses on putting carbon back into the ground by converting organic and industrial waste into biochar, renewable power and carbonate rocks, and by developing and selling carbon capture technology. The company’s stated business model is based on the growing need for carbon neutrality and the demand to reduce CO₂ emissions.

BluSky Carbon is publicly listed in Canada on the Canadian Securities Exchange under the symbol BSKY, trades on the OTCQB in the United States as BSKCF, and is also listed in Frankfurt, Germany with the identifier QE4 (WKN A401NM). The company notes that its public filings and related documents are available on its profile page on SEDAR+.

Business focus and activities

Company materials state that BluSky’s primary objectives are to:

• Construct carbon removal equipment;
• Sell the biochar produced by that carbon removal equipment; and
• Sell carbon credits generated from the production of biochar.

The company reports that it converts organic and industrial waste into biochar, renewable power and carbonate rocks. Biochar is referenced in BluSky’s communications as a product that can qualify for global carbon credit transactions when it meets certain quality and contaminant thresholds. BluSky has highlighted laboratory testing of biochar produced by its Vulcan Heavy equipment, indicating that this biochar meets requirements for its offtake agreements and qualifies for carbon credit transactions.

Carbon removal technology and equipment

In its news releases, BluSky refers to its Vulcan Heavy biomass pyrolysis systems and a Vulcan II unit. The company indicates that these systems are used to produce biochar from biomass and waste streams, and that biochar produced by Vulcan Heavy equipment has been tested to meet standards relevant for biochar offtake and carbon credit uses. BluSky also describes itself as being involved in the development and sale of carbon capture technology, and in the construction of carbon removal equipment.

Company communications describe the use of biomass pyrolysis systems to convert biomass into a more stable form of carbon in the form of biochar. BluSky links this activity to carbon sequestration and the generation of carbon credits, which it intends to sell as part of its business model.

Projects, biochar offtake and facilities

BluSky has referenced project concepts and agreements involving biochar production and offtake. The company has discussed an AR1 facility and an AR2 biochar project in Arkansas in its news releases. It has also described a ten-year project proposal for the AR2 project, involving a proposed fixed volume of biochar per year and a stated sales value based on a negotiated per-ton rate, subject to definitive agreements and financing.

The company has also mentioned a proposed production facility associated with a joint venture at its AR1 facility in Arkansas, where a joint venture would lease a Vulcan Heavy pyrolysis unit from BluSky and purchase a Vulcan II unit for research and development purposes, while BluSky would use additional Vulcan units to fulfill local agricultural biochar offtakes at the AR1 facility. These descriptions are presented by the company as part of its plans and proposals and are subject to financing and definitive agreements.

Partnerships and strategic agreements

BluSky has announced a preliminary strategic partnership agreement with Carbonpave USA, LLC, a technology-based company that develops and produces construction and industrial materials using biochar and engineered carbon as critical ingredients. Under this preliminary agreement, BluSky is described as being responsible for securing funding for an initial joint production facility, after which a joint venture would be incorporated with BluSky holding a majority interest and Carbonpave holding a minority interest. The joint venture would hold exclusive commercial rights to utilize Carbonpave’s technologies across North America and would pay a royalty fee to Carbonpave. The agreement is described as preliminary and subject to financing and final joint venture documentation.

The company has also announced a strategic agreement with Lympha Inc., a project financing and advisory firm focused on low-carbon projects. BluSky states that Lympha intends to support the financing needs of BluSky to expand production of new facilities through the sales of future carbon removal credits, and that the parties plan to collaborate in monetizing CO₂ removal credits generated from BluSky’s biochar facilities. BluSky notes that any financing will be subject to definitive agreements for specific projects.

Financing activities

In its public news releases, BluSky has described several financing activities, including:

• Non-brokered private placements of secured debentures and convertible debentures with specified interest rates, maturities and conversion terms;
• Non-brokered private placement offerings of units consisting of common shares and share purchase warrants, with stated exercise prices and terms;
• An engagement letter for a marketed public offering of units on a best-efforts basis through an agent, subject to regulatory and stock exchange approvals; and
• Amendments to the terms of previously announced convertible debenture offerings.

The company has stated that net proceeds from these offerings are intended to be used for the ongoing development of its business model, general working capital purposes, and general corporate purposes, as applicable. These financing descriptions come from BluSky’s own press releases and are subject to the terms and conditions outlined therein.

Listings and regulatory disclosures

BluSky notes that it is listed on the Canadian Securities Exchange (CSE) under the symbol BSKY, trades on the OTCQB under BSKCF, and on the Frankfurt Stock Exchange under the identifier QE4 (WKN A401NM). The company states that its audited annual financial statements and related management’s discussion and analysis and certifications are filed on SEDAR+ and can be accessed under its profile there.

Geographic footprint

In its news releases, BluSky references activities in Old Saybrook, Connecticut and Vancouver, British Columbia, and describes project concepts in Arkansas, including an AR1 facility and a proposed AR2 project in Northwest Arkansas. It also refers to potential deployment of technologies across North America through joint venture arrangements, subject to financing and definitive agreements.

Position within the carbon removal and renewable energy space

According to its own descriptions, BluSky operates in the carbon removal clean technology sector and identifies itself as a renewable energy company. Its business model, as described by the company, centers on constructing carbon removal equipment, producing and selling biochar, and generating and selling carbon credits from biochar production. The company ties this model to the broader themes of carbon neutrality and CO₂ emissions reduction, as stated in its public communications.