Arva is committed to sound financial management of the project for the entire 90 year project longevity. Arva is a profitable company and continues to experience growth in its business. Arva is a Public Benefits Corporation and has adequate capital to fulfill commitments under the Arva Carbon Ready USA project.
Project financials will be updated, replacing estimates with real-time data, enhancing Arva’s ability to forecast project longevity and financial health accurately over the life of the project. The project considers projected infrastructure needs and development costs, which are supported and advanced by Arva’s business model. Initial expenditures include essential project fees, such as the Verra account opening and maintenance, project registration, legal fees for contracting and advising, and validation and verification contracting. Additional costs include soil sampling and analysis and model calibration and validation as the project expands to include new crop functional groups. These estimates account for project expansion and inflation.
The anticipation of revenue from VCU sales is embedded in the project’s financial plan, acknowledging time for validation and verification activities before monetization. Projected annual increases of 10% in carbon prices, supported by EY forecasts1, guide revenue expectations. The CropForce platform supplements this effort, providing growers with an ongoing profit increase estimation. As project timelines, credit issuance dates, and price forecasts are subject to change, the plan remains adaptable to accurately predict and quantify project revenue.