Globacap Announces The Launch Of The Sustainable Impact Token On Tezos, Raising Up To $20m To Fund Algae Biomass Project
Globacap has announced the launch of the Sustainable Impact Token (SIT), looking to raise up to $20m to fund an agri-tech algae biomass project, which will utilize Tezos smart contract technology.
Carbon credits generated from the project will be tokenized as ‘Algaecoin’.
Globacap are an FCA regulated London-based UK firm specializing in unlocking private capital markets.
The company was founded to ‘…use emerging blockchain technology to completely change the underlying processes behind private capital markets’.
Private capital markets grew to more than $7tn in 2021 and have shown explosive growth recently as investors look for higher returns.
Private markets are still dwarfed by the traditional asset management industry and are known to be inefficient in application, however, Globacap uses blockchain technology to reshape how private markets can operate, enabling transactions that rival the efficiency of public markets.
Back in 2019, Globacap partnered with the Tezos Foundation to take private markets to the next stage of evolution.
Biomass is a ‘…plant-based material used as fuel to produce heat or electricity. Examples are wood and wood residues, energy crops, agricultural residues, and waste from industry, farms and households.’
Algae biomass has many benefits over other types of biomass as it has the potential to‘… produce considerably greater amounts of biomass and lipids per hectare than terrestrial biomass, and can be cultivated on marginal lands, so do not compete with food or other crops.
Algae can be cultivated photosynthetically using sunlight for energy and CO2 as a carbon source.’
Algae biomass is renewable. Unlike oil and natural gas fuels which are finite resources and can eventually run out.
Algae can always be cultivated, however, its current production does rely heavily on other natural resources such as phosphorus.
Phosphorus is used in fertilizers to cultivate crops and therefore widescale usage in algae farms could have a large scale impact.
There have been recent studies looking into the potential of using the algae as a fertlizer and it has already been shown that wheat can access the phosphorus from algae biomass as efficiently as from mineral fertilizer.
Algae biomass has advantages in terms of carbon dioxide management as algae farms can convert carbon dioxide into oxygen: ‘Algae farms give us the potential to create a neutral environment where the growth cycle absorbs the gases that we create when meeting our everyday needs
…When we start using sustainable biomass to create fuels instead of natural gas or oil, then the photosynthesis process of the plants converts the CO2 into oxygen for our atmosphere to enjoy.’
The algae biomass sector is currently valued at $5 billion and is expected to grow as a compound annual growth rate of 6.3% during the next 3 years.
The market for algae fuel is expected to increase to $11.4 b by the year 2027.
The Sustainable Impact Token (SIT) Powered By Tezos
SIT is raising up to $20m to fund the development of a flagship biomass production facility in Poland.
In the whitepaper it states:
‘Sustainable Impact Token (“SIT”) is leading the development, construction and operation of algae biomass farms using patented, sustainable technology to produce high-quality, non-animal protein within a system powered exclusively using renewable energy.’
SIT uses Tezos to provide an FA 2 token contract, representing investors preferred shares in the project. Tezos is used to ‘…enable frictionless transferability in full compliance with securities regulation’.
A Sustainable Impact Token will represent asset-backed preferred share with a dividend yield of 10% per year with records being kept on the blockchain.
The SIT will quantify its reduction levels, generating carbon credits, which will then be tokenized as digital assets called ‘Algaecoin’ and traded on exchanges.
After the token sale it is expected that the project will take 9-12 months to begin operation, meaning investors will not receive a dividend in the first year.
On the project, Myles Milston, CEO of Globacap said:
“Being part of this pioneering project marks an important milestone in our ongoing mission to enable frictionless asset creation and transferability.
With Globacap, the capital raising process is completely digital, mostly automated, transparent, secure, and compliant.
Our work with SIT and Tezos is transformational in the way this market can operate.”
Chairman & Founder of Sustainable Impact Token, Peter Henderson, commented:
“We wanted to structure the offering using an innovative, transparent and secure approach. Investors are being offered an attractive return, in a real asset, but through digital technology – and they can make their investments through fiat or crypto currencies.
“Bringing the token offering to market has been amazingly smooth, which is a credit to our partners at Globacap, Tezos and Lumin Capital.”
Mason Edwards from Tezos Foundation added:
“As solutions to the macro challenges of food scarcity and sustainable energy production continue to be a global priority, demand for investment vehicles that can also support these objectives are increasing.
We are thrilled to see Globacap choose Tezos to power this unique blockchain based, asset-backed offering.”
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