Key Highlights

  • Verde Resources’ subsidiary will provide biochar to Ergon under a master commercialization agreement.
  • The initial annual supply of up to 38,500
  • Carbon removal credits generated from the Ergon‑Verde products will be managed and partially shared with Ergon.

Verde Resources Inc. (OTC: VRDR) announced that its wholly owned subsidiary, Verde Renewables, has executed a master commercialization and collaboration agreement with Ergon Asphalt & Emulsions, Inc. The pact designates Verde Renewables as the preferred supplier of biochar for Ergon’s asphalt and pavement preservation portfolio. A copy of.

Agreement Overview

The master agreement grants Verde Renewables first rights to supply biochar for any Ergon product that incorporates the material. Both parties will negotiate commercial terms for each application, documenting them in addenda or separate contracts. The arrangement also obligates Verde Renewables to support Ergon with technical assistance and field services to accelerate market uptake.

Product Focus

The initial collaborative effort centers on a cold‑mix road‑paving formulation that embeds Verde’s biochar. Ergon, the largest U.S. Provider of asphalt and preservation solutions, will test, pilot, and commercialize this blended product.

Revenue from sales of the biochar component will be shared between the partners, and Ergon will remit a cash royalty for each gallon of its emulsion sold under the project.

Carbon Credit Management

Verde Renewables will oversee the registration, verification, and sale of carbon removal credits generated by the biochar‑enhanced paving mix. Net proceeds from these credits will be divided, with a percentage returned to Ergon. This framework creates an additional revenue stream tied to the environmental benefits of the biochar.

Supply Chain Amendment

In parallel, Verde Renewables amended its supply agreement with Biochar Solutions LLC. The amendment, a copy of, confirms an initial annual supply ceiling. All biochar delivered under the amendment will be white‑labeled with Verde Renewables’ branding.

Timeline and Commencement

The collaboration is slated to begin in 2027, with Verde Renewables providing biochar for the cold‑mix product and supporting Ergon’s rollout efforts. The parties will hold annual discussions to evaluate purchase commitments and adjust supply volumes as market conditions evolve.

Term and Renewal

The master agreement runs for an initial multi‑year period and renews automatically unless either side issues termination notice six months before the current term ends. Standard termination clauses apply for breach, bankruptcy, or executive changes, with a 60‑day notice provision tied to senior leadership departures.

FAQs

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.