Puro.earth Partnership Proposal — Technology-Enhanced Carbon Integrity

Executive Summary

As the first registry to focus exclusively on engineered carbon removal, Puro.earth has established itself as a leader in the carbon credit market, particularly in the domain of carbon removal credits. With your recent acquisition by Nasdaq, the emphasis on market infrastructure and integrity aligns seamlessly with DaedArch Corporation's innovative sensor-based Monitoring, Reporting, and Verification (MRV) platform. This proposal outlines a strategic partnership aimed at enhancing the integrity of carbon credits through advanced sensor technology, ensuring compliance with existing methodologies, and facilitating transparent verification processes. By leveraging DaedArch's capabilities in real-time data collection and analysis, we can mutually enhance the credibility of carbon removal projects under Puro.earth’s registry, particularly in biochar, BECCS, enhanced weathering, and direct air capture.

Value Proposition

Enhanced Verification Integrity

DaedArch's MRV platform is designed to provide continuous, real-time monitoring of carbon removal projects. Our sensor-based technology enables:

• Ground-Truth Data Collection: Utilizing IoT-enabled sensors, we gather high-resolution data that aligns with the requirements set forth in the Puro.earth methodologies, including Version 1.0 of the Biochar Methodology and Version 2.0 of the Direct Air Capture Methodology.
• Automated Reporting: Our platform automates the reporting process, minimizing human error and ensuring that data submitted for verification is accurate and timely. This is crucial for maintaining the integrity of carbon credits and meeting the expectations of stakeholders.
• Transparent Verification Chains: By integrating our data into Puro.earth’s registry framework, we can enhance transparency, allowing third-party verifiers to access real-time data streams that substantiate project claims.

Alignment with Puro.earth’s Mission

Our partnership will support Puro.earth's commitment to promoting engineered carbon removal solutions. By integrating DaedArch’s MRV capabilities, we can:

• Strengthen the credibility of carbon removal credits by providing verifiable, real-time data that meets the standards outlined in the Puro.earth Registry's Verification Protocol.
• Facilitate the scaling of innovative carbon removal technologies, such as biochar and BECCS, by ensuring robust monitoring that meets the regulatory and market demands.
• Enhance market confidence, ultimately driving demand for carbon removal credits and supporting Puro.earth's growth trajectory.

Partnership Model

Collaborative Framework

The proposed partnership will operate under a collaborative framework, where both organizations leverage their strengths to achieve common goals:

• Integration of Technologies: DaedArch will integrate its MRV platform with Puro.earth’s existing registry infrastructure, ensuring seamless data flow and compliance with registry standards.
• Joint Development of Methodologies: We will work together to refine existing methodologies and develop new ones that incorporate sensor-based monitoring, enhancing the rigor of carbon credit verification.
• Shared Marketing Initiatives: Both organizations will engage in joint marketing efforts to promote the enhanced integrity of carbon credits verified through our partnership, targeting key stakeholders in the carbon markets.

Governance Structure

A governance structure will be established to oversee the partnership, comprising representatives from both organizations. This governance body will:

• Coordinate technology integration efforts.
• Monitor the effectiveness of the partnership.
• Address any challenges that arise during implementation.

Pilot Program

Objectives

The pilot program aims to demonstrate the effectiveness of DaedArch's MRV platform in enhancing the verification integrity of carbon removal projects registered with Puro.earth. The specific objectives include:

• Validation of Sensor Data: Assess the accuracy and reliability of sensor data in real-world applications.
• Assessment of Reporting Efficiency: Evaluate the efficiency gains from automated reporting processes.
• Verification Process Enhancement: Analyze the impact of real-time data access on the verification process.

Selected Projects

The pilot program will focus on a select number of projects within Puro.earth’s registry, particularly those utilizing biochar, BECCS, and direct air capture methodologies. We recommend the following projects for initial integration:

1. Biochar Project A: A project focused on converting agricultural waste into biochar, with a target of sequestering 10,000 tons of CO2 annually.
2. BECCS Project B: A biomass energy project that captures and stores CO2 emissions, aiming for a reduction of 15,000 tons of CO2 per year.
3. Direct Air Capture Project C: A facility utilizing advanced DAC technology to remove 5,000 tons of CO2 from the atmosphere annually.

Implementation Steps

1. Site Assessment: Conduct an initial site assessment to identify optimal sensor placement and integration points.
2. Sensor Deployment: Deploy DaedArch’s sensors at selected project sites, ensuring compliance with Puro.earth's monitoring requirements.
3. Data Integration: Integrate real-time data streams into Puro.earth’s registry for ongoing monitoring and reporting.
4. Evaluation and Reporting: Assess the pilot program outcomes, focusing on data accuracy, reporting efficiency, and verification process improvements.

Timeline

The proposed timeline for the partnership and pilot program is as follows:

• Month 1-2: Partnership agreement finalization and governance structure establishment.
• Month 3: Initial site assessments and project selection confirmation.
• Month 4-5: Sensor deployment and data integration.
• Month 6-8: Pilot program execution, including data collection and analysis.
• Month 9: Evaluation of pilot program outcomes and adjustments as necessary.
• Month 10: Joint presentation of findings and recommendations for scaling integration across additional projects.

Commercial Terms

Revenue Sharing Model

The partnership will operate under a revenue-sharing model, whereby both DaedArch and Puro.earth will benefit from enhanced carbon credit sales resulting from improved verification integrity. Proposed terms include:

• Percentage Split: A 60/40 revenue split favoring Puro.earth for all carbon credits sold that utilize DaedArch’s MRV data.
• Performance Incentives: Additional bonuses for exceeding project targets, incentivizing both parties to maximize carbon removal outcomes.

Cost Structure

The costs associated with the pilot program will be shared equally between both organizations, covering sensor deployment, data processing, and integration efforts. A detailed budget will be developed during the initial partnership phase.

Future Collaboration

Upon successful completion of the pilot program, we anticipate expanding the partnership to include:

• Broader integration of DaedArch’s MRV platform across all projects registered with Puro.earth.
• Joint development of new methodologies that incorporate sensor-based monitoring for emerging carbon removal technologies.
• Continued collaboration on marketing initiatives to promote the enhanced integrity of carbon credits.

Conclusion

The partnership between DaedArch Corporation and Puro.earth represents a significant opportunity to enhance the integrity and credibility of engineered carbon removal credits. By leveraging advanced sensor-based MRV technology, we can provide the necessary transparency and verification rigor that stakeholders demand in today’s carbon markets. We look forward to discussing this proposal in detail and exploring the path forward for a successful collaboration that aligns with our shared commitment to addressing climate change through innovative solutions.

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Appendix

• References to Puro.earth Methodologies:
• Biochar Methodology (Version 1.0)
• Direct Air Capture Methodology (Version 2.0)
• Verification Protocols and Standards

• DaedArch Technical Specifications:
• Overview of sensor technology and data analytics capabilities.
• Compliance with industry standards for MRV in carbon markets.