Forestry & Carbon Investment Platform
Investment opportunity involving biomass production, certified industrial timber, carbon credit generation, and land revaluation.
A forestry platform is being structured, focused on the development of sustainable forestry assets in Paraguay, combining biomass production, certified industrial timber, carbon credit generation, and land revaluation. The project involves the acquisition and progressive development of land suitable for forestry plantations within a strategic logistics radius close to the country’s main industrial hubs.
The plantations will be integrated into existing agro-industrial value chains, including biomass for energy, timber for veneer and plywood, and other industrial uses. The project seeks to leverage the progress made within the forestry cluster to position itself as a relevant supplier of raw materials and carbon credits within the value chains currently being developed in Paraguay.
Investment Highlights
Scalable Platform
Up to 20,000 planted hectares with strategic location and access to existing forestry and energy industries.
Carbon Credits
Estimated generation of certified carbon credits during the first forestry rotations, contributing to global climate goals.
Diversified Income
Revenue streams across timber, biomass, carbon credits, and potential land value appreciation.
ESG Standards
Development under international ESG standards, aligned with global sustainability goals and best practices.
Market Opportunity
The demand for sustainable biomass and certified forest products is growing in Paraguay and the region, driven by:
- Expansion of the energy biomass industries
- Demand for certified industrial timber
- Growth of the carbon market
Properties Summary
The project is being developed across 4 geographic locations strategically positioned for their potential for establishing commercial plantations and generating carbon credits, considering factors such as total surface area, effectively plantable area, estimated carbon capture, required investment, and logistical proximity to Asunción.
| Location | Investment (USD MM) | Project IRR | NPV @10% (USD MM) | Total Surface (ha) | Effective Plantation (ha) | VCUs (CO₂ eq.) |
|---|---|---|---|---|---|---|
| Location 1 | 6.65 | 16.07% | 3.55 | 2,736 | 1,032 | 193,552 |
| Location 2 | 9.16 | 15.85% | 5.47 | 2,028 | 1,250 | 255,793 |
| Location 3 | 1.56 | 15.11% | 0.84 | 356 | 283 | 46,223 |
| Location 4 | 15.63 | 14.12% | 6.71 | 3,256 | 2,576 | 426,273 |
| Totals | 33.01 | 15.00% | 16.58 | 8,376 | 5,141 | 921,841 |
Land Use Strategies
The total project area is distributed across different land use strategies, including commercial plantations, forest restoration, conservation, and real estate development.
| Strategy | Hectares | % |
|---|---|---|
| Solid Wood – Eucalyptus | 3,216 | 38% |
| Biomass – Eucalyptus | 1,470 | 18% |
| Solid Wood – Native & Perennes | 240 | 3% |
| Forest Restoration | 128 | 2% |
| Conservation | 3,236 | 39% |
| Real Estate | 86 | 1% |
| Total | 8,376 | 100% |
Carbon Metrics
Financial Projections
With Land Revaluation
Without Land Revaluation
Project Financials Summary
Complete Consolidation: The full project consolidates the execution of the business lines of biomass, certified industrial timber, carbon credit generation, and land revaluation.
- Investment: USD 33.01 MM
- Project IRR: 15%
- Project NPV @10%: USD 16.58 MM
Consolidation without land revaluation: The operational project of biomass, certified industrial timber, and carbon credit generation, without land revaluation, presents the following cash flow consolidation.
- Investment: USD 33.01 MM
- Project IRR: 14.16%
- Project NPV @10%: USD 12.14 MM
Investment Vehicle: Special Purpose Vehicle (SPV)
The investment is channeled through a Special Purpose Vehicle (SPV) that will consolidate forestry assets and develop the associated carbon projects. The SPV structure offers several advantages for investors:
- Capital Aggregation: The SPV pools capital from multiple investors, allowing collective participation in an opportunity that would otherwise require a larger individual commitment.
- Reduced Minimum Ticket: By aggregating capital from multiple investors, the SPV can accommodate a lower minimum investment ticket, making the project accessible to a broader range of qualified investors, including family offices and smaller institutional investors.
- Professional Management: The SPV will be managed directly by the project developer, leveraging its proven and consolidated experience in Paraguay in forestry development, carbon project design, and integration with agro-industrial value chains.
- Risk Mitigation: The SPV structure provides a clear separation of assets and liabilities, offering investors a defined risk profile and legal protection.
The project has industrial partners with proven and consolidated experience in Paraguay in forestry development, carbon project design, and integration with agro-industrial value chains. By utilizing an SPV structure, the project successfully attracts multiple rounds of financing while maintaining clear separation between different phases of forest conservation and development.
Capital Requirement
Estimated investment for the initial development phase: USD 33 million. Allocated to:
- Land acquisition
- Plantation development
- Carbon project implementation
- Infrastructure and operation
Investor Profile
This opportunity is aimed at:
- Impact funds
- Institutional investors
- Family offices
- Investors interested in sustainable real assets
Next Steps
An extended information memorandum is available for interested investors, subject to a confidentiality agreement. Our capital intermediation team aims to connect investment projects originating in Paraguay with funds interested in growing markets and in projects with high sustainability standards.
For more information, please contact our team:
Diego Popoff
Asunción, Paraguay
(+595) 991 540 676
diego@redlandparaguay.com
Rodrigo Rojas
Asunción, Paraguay
rodrigo@redlandparaguay.com