Verde Resources, Inc. (OTC: VRDR)

Verde Resources, Inc. is a road construction and building materials company that develops and licenses environmentally sustainable technologies. Its core offerings include biochar infused asphalt known as BioAsphalt, a cold mix emulsifying agent called Verde V24, an enzyme based soil stabilizer named TerraZyme, and a biochar production process referred to as BioFraction. BioAsphalt combines biochar, a stable form of carbon derived from organic waste, with Verde V24 to create a pavement material that can be applied at ambient temperature and that generates verifiable carbon removal credits. Verde V24 enables the formation of a strong bond between biochar and aggregate without the need for heat. TerraZyme works by catalyzing a natural reaction in clay soils to improve strength, durability and moisture resistance while reducing the need for traditional chemical binders. BioFraction uses a pyrolysis process to convert palm oil waste into biochar and other renewable byproducts that can supply the carbon sequestering component of its asphalt products. The company’s strategy integrates carbon sequestration into infrastructure to create materials that perform well and contribute to climate goals.

Verde Resources, Inc. generates revenue primarily through the licensing and sale of its proprietary materials. It sells Verde V24 to its exclusive licensee Ergon Asphalt & Emulsions, Inc. for use in asphalt products across the United States, Canada and Mexico, and receives a share of the carbon removal credits generated from biochar infused asphalt. The company also plans to sell biochar produced at its Borneo facility to third parties that require a sustainable carbon source for construction or industrial applications. In addition, Verde Resources, Inc. intends to license the TerraZyme enzyme and the BioFraction process to qualified partners, earning licensing fees, royalties and potential revenue from carbon credit sales associated with those technologies. The firm anticipates that carbon removal credits will become a recurring revenue stream as each ton of biochar infused asphalt sold results in a verified credit that can be sold to corporations seeking to offset emissions. Revenue may also arise from the sale of specialty biochar products derived from the BioFraction process for use in soil amendment or other markets. Overall, the business model relies on a light asset approach where partners handle production and distribution while Verde Resources, Inc. focuses on innovation, technology transfer and credit monetization.

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Verde Resources, Inc. occupies a niche at the intersection of the sustainable construction materials market and the carbon removal industry. The global road construction market was valued at $572.9 billion in 2023, with the North American segment accounting for $188.0 billion, indicating a large addressable opportunity for innovative paving solutions. In the carbon removal space, analysts project the market for carbon dioxide removal credits could grow from roughly $2.7 billion in 2023 to as much as $100 billion per year by 2030 to 2035 if standards and policy frameworks improve. While the company faces competition from large, established construction materials producers and a growing number of climate tech startups focused on carbon offsets, it differentiates itself by being the first to commercialize a carbon sequestering asphalt product that has been validated by the National Center for Asphalt Technology and certified by Puro.earth for carbon credit generation. Its competitive advantages include a scalable licensing model that leverages partners’ existing infrastructure, next generation road technologies that lower emissions and maintain performance, the ability to create verified carbon removal credits that open new revenue streams, an asset light expansion strategy that minimizes capital needs, and alignment with global net zero targets and environmental, social and governance expectations.

The company’s customers are businesses engaged in road construction and infrastructure development as well as governmental entities that procure paving and soil stabilization products. Under its exclusive licensing agreement, Ergon Asphalt & Emulsions, Inc. serves as the primary channel for distributing Verde V24 and biochar infused asphalt throughout the United States, Canada and Mexico, reaching state departments of transportation, local municipalities and federal agencies such as the Department of Defense and the Department of Transportation. Private sector contractors and developers also rely on these materials to meet environmental, social and governance goals and to qualify for green financing or tax incentives. In addition, Verde Resources, Inc. anticipates future customers in Southeast Asia where it plans to offer its biochar, TerraZyme and BioFraction technologies to highway operators, provincial agencies and private firms pursuing sustainable infrastructure projects. The firm’s model enables these customers to obtain sustainable products without building new production facilities, as they can incorporate the licensed technologies into their existing operations.