ECO2 Forests Inc. (ECOF.PK) announced its first Global Forestry Plan project on US soil will be a planned 14,000 acre Kiri Tree forest program in Washoe County, Nevada.
The project will be known as the US Sustainable Forest Program and is expected to result in the planting of up to 3 million Kiri Trees. This is the first such project in the United States of this magnitude, the company said.
"ECO2 Forests intends to establish a Program of Sustainable Forest projects in Washoe County, Nevada. Each project is forecast to contain approximately 2,000 acres of land to be forested. The Smoke Creek Project is the first project, planned to commence immediately. It is the first phase of a 14,000 acre program of 7 such forecasted projects forming the US Sustainable Forest Program," ECO2 Forests CEO Collie Christensen said today.
The Kiri Tree reaches maturity in just seven years.
"Due to the unique regenerative nature of the Kiri Tree being planted and its ability to regrow from the stump after each harvest, the project is planned to operate for approximately 50 years, subject to certain conditions. This period coincides with the lease terms of the total 78,000 acre network of ranches which includes the water rights to ensure sufficient irrigation for the entire project."
ECO2 Forests said the project is forecast to produce in excess of $220 million
of revenue per year for the Washoe County US Sustainable Forest
Program. Operational costs are expected to be
around 20%.
"This is a fantastic project for ECO2 Forests, our land partners, associates and for our forests that are under threat from logging in the United States. By growing our sustainable forests we can help stop the logging of forests that have existed for hundreds of years and enjoyed by thousands of families every year," remarked Christensen.
"ECO2 Forests anticipate that we will employ 280 US workers who live in the local area which we hope will provide another boost to the local economy, with the planned commencement of planting in mid-May of the initial nursery site," Christensen added.
Additional capital raising of up to an initial $10 million to accredited investors has already commenced. This capital raising is aimed to ensure the project is suitably funded.
The company did not give a timeline for planting the full 14,000 acres, however it did offer operational estimates for the full acreage:
- 3 million Kiri Trees planted
- 560 million board feet (1.3 million m3) of sustainable lumber produced for sale
- $1.49 billion in sales of sustainable lumber
- 6.5 million tons of CO2 absorbed from the atmosphere (carbon sequestration)
- 6.5 million carbon credits generated
- $84 million carbon credit sales
In January, ECO2 Forests Inc. announced a deal to sell the carbon credits generated from an Austrailian project to CarbonX Trade, Inc., a subsidiary of Lakewood, CO-based Green Ventures Future Fund.
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