INTERVIEW: US firm bids to turn DRC oil blocks into green projects
Quantum Commodity Intelligence – New York investment firm EQX Biome is bidding for oil concessions in the Democratic Republic of the Congo (DRC) in order to run them as conservation projects, its founder and CEO Matthias Pitkowitz told Quantum on Wednesday.
EQX Biome describes itself as a mission-based financial firm focused on protecting the world's remaining biodiversity hotspots, with a focus on the Amazon rainforest and the Congo Basin.
The company has sent an expression of interest to the DRC government for 27 oil exploration blocks in the Congo basin rainforest and Virunga national park put up for auction in July 2022.
The aim of the $400m (£334m) bid is to prevent oil exploration in the areas and instead partner with NGOs to set up REDD+ projects.
The company will then look to sell carbon and biodiversity credits generated by the projects that would avoid damage done by the oil exploration.
The $400m is enough to provide seed funding for projects before revenues from carbon credits can be generated, says EQX.
"Our business model works in us raising money from the equity and debt markets, and also donations, and spending 100% of them on planetary conservation efforts like the one you're seeing in the DRC with extremely clear and powerful conservation outcomes that are hard to question," says Pitkowitz.
EQX Biome estimates the conservation project to be worth at least $6 billion over 20 years and would create more jobs and tax revenue than the oil concessions would generate.
Quantum understands that DRC ministers are considering the proposal after hydrocarbons minister Didier Budimbu last month postponed the end of the auction until October amid rumours of lukewarm interest.
"There's so much carbon integrity discussion now and I think what will set us apart as a provider of credits is these clear unquestionable results provided at a very big high level," Pitkowitz also said.
The company says it is looking to finance similar protection systems in the Amazon, the world's deforestation hot spot.
At the end of July 2022, the DRC launched an auction for 27 oil and three gas blocks.
At least three oil blocks overlap the Cuvette Centrale peatlands, one of the world's largest carbon sinks, and a further nine overlap protected areas.
Activists have said the auctions could open up previously inaccessible parts of the Congo Basin rainforest to loggers.
Carbon-backed crypto groups have previously expressed an interest in joining the bidding, but it is unclear whether these efforts have led anywhere.
RedemptionDAO, a crowdfunding movement to outbid the oil companies, hoped to raise $50 million by January 2023 but has not posted any updates since August 2022.
The Guardian newspaper first reported about EQX Biome's bid.
