Le Lézard
Classified in: Environment, Science and technology
Subject: SVY

CubicFarm Systems Corp. Announces Methane Reduction and Carcass Study Results and Corporate Update


VANCOUVER, BC, Aug. 10, 2022 /CNW/ - CubicFarm® Systems Corp. ("CubicFarms" or the "Company") (TSX: CUB) a leading local chain agricultural technology company, today announced the preliminary results of its methane and carbon dioxide-equivalent reduction study (the "Carbon Study") and beef finishing carcass study (the "Carcass Study"). The Company also provided updates related to the Company's HydroGreen division and previously announced carbon commercialization program and a corporate update.

Study data indicates significant improvements in animal performance and a reduction in the environmental footprint of cattle, while providing compelling unit economics and payback period.

Study Highlights

Carcass Study

Carbon Study

Quantification of Value

Verra Carbon Standard certification can be used to monetize greenhouse gas ("GHG") emission reductions by converting them into tradeable carbon credits. The enteric methane reductions are understood to be categorized under the VM40001 methodology, which would allow for sales in carbon credit offset markets.

HydroGreen Patents Pending Issuance

HydroGreen has filed patent applications that protect its proprietary growing methods, including HydroGreen's indoor growing system hardware design. Over the past several months, HydroGreen has filed eight additional patent applications related to HydroGreen's process and benefits of sprouting grains, reducing methane in beef cattle, and improving fertility in cattle.

In addition to the Carbon Study and the Carcass Study beef data, previously announced research data demonstrated that feeding dairy cows HydroGreen fresh forage lowers methane emissions by approximately 24 per cent on a per unit milk output basis. HydroGreen continues to pursue further dairy studies to extend the addressable carbon commercialization for the dairy market.

Carbon Credit Opportunity

Global consumer demand for beef and dairy is expected to grow for the foreseeable future2 as global living standards rise. To mitigate the environmental effects of increased global consumer demand for beef and dairy, livestock producers will need to invest in innovative solutions to reduce methane emissions from cattle, such as HydroGreen technology.

By pre-selling farm-based inset and offset carbon credits to organizations with net-zero goals, the Company believes it is ideally positioned to create recurring cash flow from operations and capture carbon credit streams as demand and value of carbon credits increase.

Premium Co-Benefits

In addition to the methane reduction from feeding cattle fresh forage grown in commercial scale AVPs, the Company identified premium co-benefits, including:

"It isn't often that a globally applicable technology can both benefit the environment and drive performance increases supported by compelling unit economics," said Dave Dinesen, Chief Executive Officer, CubicFarms. "HydroGreen continues to prove its value as a leading livestock feed technology that not only significantly improves animal performance and delivers meaningful environmental benefits, but also positions us to enter the carbon credit market."

Corporate Update

A total of 223 CubicFarm System and HydroGreen sales orders under contract that are pending manufacturing, installation, and site readiness, are valued at approximately USD$30.7 million:

Geographic
Territory

Country

Division

Number of
Modules

Estimated Value
(USD Millions)

Expected
Completion
Date

Indiana

USA

Fresh

20

3.0

2022 Q3

New South Wales

Australia

Fresh

19

2.7

2022 Q4

Manitoba

Canada

Fresh

27

4.0

2023 Q1

British Columbia

Canada

Fresh

26

3.4

2023 Q1

Montana

USA

Fresh

21

2.9

2023 Q2

British Columbia

Canada

Fresh

100

12.6

2023 Q4

Texas

USA

Feed

10

2.1

2022 Q4

Total



223

30.7


FreshHub Commercial Validation Project

CubicFarms has completed Phase I of its rapid project to achieve commercial validation of its larger FreshHub configuration using the CubicFarm System technology and approach, prior to the installation of the first FreshHub targeting the end of December 2023. Phase II is currently underway, with Phase III equipment being ordered for installation:


Intention

Target Commercial Outcome

Progress

Phase I

Proof of concept using
latest CubicFarm
System technology

Build and manufacture the FreshHub
prototype modules

Complete

Phase II

Validate produce
output

Growing the volume of produce
necessary at scale and quality to run a
FreshHub operation

Targeting
October 2022

Phase III

Validate commercial
earnings

Validate operating model economics to
run a FreshHub operation, targeting a
return on invested capital of 20%

Targeting
February 2023

Footnotes

1Assumed value based on estimates of realized pricing. Wholesale market pricing for beef ranges from approximately USD$3.50 per kilogram. for ground beef to approximately USD$24.50 for choice grade tenderloin. Source: United States Department of Agriculture market news for the week ended August 5, 2022.


2Organization for Economic Co-Operation and Development (OECD).

About HydroGreen

HydroGreen's Automated Vertical Pasturestm technology utilizes a unique process to sprout grains, such as barley and wheat, in a controlled environment with minimal use of land, labour and water. HydroGreen's fully automated indoor growing technology performs all growing functions including seeding, watering, lighting, harvesting, and re-seeding ? all with the push of a button ? to deliver nutritious fresh forage for livestock without the typical investment in fertilizer, chemicals, fuel, field equipment, and transportation. Automated Vertical Pasturestm not only provide superior nutritious feed to benefit the animal, but also enables significant environmental benefits to the farm.

About CubicFarms

CubicFarms is a leading local chain agricultural technology company developing and deploying technology to feed a changing world. Its proprietary ag-tech solutions enable growers to produce high quality, predictable produce and fresh livestock feed with HydroGreen Nutrition Technology, a division of CubicFarm Systems Corp. The CubicFarmstm system contains patented technology for growing leafy greens and other crops onsite, indoors, all year round. CubicFarms provides an efficient, localized food supply solution that benefits our people, planet, and economy.

For more information, please visit www.cubicfarms.com.

On behalf of the Board of Directors

"Dave Dinesen"

Dave Dinesen, Chief Executive Officer

Forward looking and other cautionary statements

Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, including, without limitation, statements with respect to: the Company's ability to qualify the methane reduction achieved through AVPs for carbon credits, the quantification of value of the AVPs and the market for carbon credits generally, the expected completion date of projects under contract and the anticipated dates for completion of Phase II and Phase III of the FreshHub Commercial Validation Project. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements including: verification, cancellation and other risks associated with carbon credits; reduction in demand for carbon credits; changes in government regulation; estimates of market opportunity for carbon credits and forecasts of market growth may prove to be inaccurate. Such statements can be identified by the use of words such as "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict", and other similar terminology, or state that certain actions, events, or results "may", "can", "could", "would", "might", or "will" be taken, occur, or be achieved.

These statements reflect the Company's current expectations regarding future events, performance, and results and speak only as of the date of this news release. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except as required by securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if the Company's expectations regarding future events, performance, or results change.

SOURCE CubicFarm Systems Corp.


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News published on 10 august 2022 at 07:30 and distributed by: