SINGAPORE - noco-noco Inc. (NASDAQ: NCNC), a technology solutions provider, has announced a partnership with Tokyo-based Binex Inc. to jointly develop agriculture-based carbon credits. The collaboration leverages Binex's sorghum cultivation, which is expected to contribute to soil carbon sequestration and the generation of carbon credits.
noco-noco, known for its X-SEPA™ battery separator technology, is expanding its climate action initiatives beyond its core business. The company's current projects include developing nature-based deforestation credits in Papua New Guinea, and with this new agreement, it aims to diversify into agriculture-based carbon credits.
Binex has been focusing on biofuels, cultivating a specific variety of sorghum that yields over 250 tons per hectare annually, significantly higher than the conventional types. These sorghum crops are not only expected to enhance food security and reduce carbon emissions but also improve soil health and farmers' livelihoods.
The innovative approach to sorghum cultivation aligns with several United Nations Environmental, Social, and Governance (ESG) goals. Sorghum is resilient and grows well in marginal lands, enhancing soil quality and offering an alternative to traditional fossil fuels.
According to Binex, the sorghum project has the potential to sequester 18 to 20 tons of carbon per hectare in the soil, with ongoing research to increase this capacity. The company plans to begin large-scale cultivation in Australia later this year, following a successful initiation in Thailand last year.
Mr. Masataka Matsumura, CEO of noco-noco, expressed enthusiasm about the partnership and its potential to support the company's mission to decarbonize, particularly in the electric vehicle and battery manufacturing sectors.
The information in this article is based on a press release statement.
InvestingPro Insights
noco-noco Inc. (NASDAQ: NCNC) is embracing new sustainability ventures, as seen in their latest partnership with Binex Inc. to develop agriculture-based carbon credits. While noco-noco is expanding its environmental initiatives, it's important for investors to consider the company's financial health and performance. Here are some key metrics from InvestingPro:
- The company's Price to Earnings (P/E) Ratio, an indicator of market expectations of future earnings, is currently at -1.86. This negative value suggests that noco-noco is not generating net income at the moment, which could be a concern for profitability-focused investors.
- With a Price to Book (P/B) Ratio of -8.47, the market valuation is significantly lower than the company's book value. This could indicate that the assets are being undervalued or the company is facing substantial challenges.
- Investors should note the significant 1 Year Price Total Return of -97.8%, a metric that highlights the stock's performance over the past year and could reflect investor sentiment about the company's long-term prospects and current initiatives.
For investors interested in noco-noco's future growth and sustainability efforts, here are a couple of InvestingPro Tips:
- Given the company's current financial metrics, it would be prudent to monitor its ability to turn environmental initiatives into profitable ventures, especially considering its significant negative EBITDA Growth of -1451.41%.
- Examining the company's recent YTD Price Total Return of 24.12% might offer insights into how recent strategic decisions, such as the partnership with Binex, are being received by the market.
For those looking to delve deeper into noco-noco's financials and future prospects, InvestingPro offers even more detailed analysis. There are additional InvestingPro Tips available that could further guide investment decisions. Use the coupon code PRONEWS24 to get an extra 10% off on a yearly or biyearly Pro and Pro+ subscription for a comprehensive investment toolkit.
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