BadCarbon and Nexus Renewable Power

Terms

Announced

18 Mar 2025

Instrument

M&A

Amount

US$100m

Source

businesswire.com

Parties

Project developer

Nexus Renewable Power, LLC

Country

United States (Texas / ERCOT)

Capital providers

Capital providers and the amount counted for each

Party	Role	Amount	Basis
BadCarbon	Acquirer	US$100m	Sole provider: the whole transaction

Carbon

Pathway

Avoided fossil extraction

What happened

Bad Carbon LLC (BadCarbon) on an equity investment with Nexus Renewable Power, LLC (Nexus) valued at USD 100 million in the form of carbon credits generated under BadCarbon's Geologic Environmental Mineral Sequestration (GEMS) methodology. In exchange for its contribution of the credits, BadCarbon received an equity position in a Nexus entity, which will now proceed to market and sell the credits and use the proceeds to fund development costs for renewable energy projects in Texas, specifically, the development of solar and battery energy storage systems on the ERCOT grid.

Kumo note

No cash moved. BadCarbon contributed US$100m of carbon credits it had generated itself and took an equity position in a Nexus entity in return; Nexus now markets and sells those credits. The credits are issued under BadCarbon's own Geologic Environmental Mineral Sequestration (GEMS) methodology rather than to a registry standard in general use, so they are not comparable with credits verified under Verra, Gold Standard, Puro or Isometric. The crediting basis is avoided fossil extraction: preservation agreements over commercially viable oil reserves, credited on the lifecycle emissions those reserves would otherwise have produced. The consideration, the methodology and the crediting basis each sit outside the pattern of the cash financings ranked alongside it.

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