Nordic Climate Finance Summit

Kampala, Uganda, Dec 16, 2025 – In a groundbreaking ceremony hosted at the Uganda Parliament, Stack Carbon Investments UG Ltd, Jiaxing Tongao Environmental Technology Co. Ltd (China), and TerraCapX AS (Norway) signed a landmark Memorandum of Understanding to establish Uganda's—and Africa's—first large-scale industrial biochar carbon removal and biochar-based fertilizer production facility. The USD $12 million project represents a transformative solution to Uganda's agricultural waste crisis while addressing the mounting costs and climate risks associated with chemical fertilizers.

Climate Crisis as Opportunity for African Resilience

In his opening remarks at the signing ceremony, Kenny Kaluiji, Founder and Chief Growth Officer of TerraCapX AS and Executive Director of the Nordic Climate Finance Summit, framed the project within Africa's broader climate imperative:

"The opportunity for Africa today is the climate crisis: the climate crisis that will drive us toward building resilience in critical economic sectors, health systems, supply chains, adaptation infrastructure, and education for managing climate risks."

This vision of transforming climate challenges into opportunities for comprehensive resilience building underpins the Nile Char Project's holistic approach.

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A Game-Changer for Uganda's Agricultural Economy

The Nile Char Carbon Removal Project will process over 10 million tonnes of agricultural waste over 20 years, converting biomass that would otherwise be incinerated or left degrading in landfills into high-value biochar-based fertilizer. This innovative approach tackles multiple challenges simultaneously: eliminating environmental damage from waste burning, improving soil health, sequestering carbon, and providing affordable fertilizer alternatives to Uganda's smallholder farmers.

"This project is not just about waste management—it's about reimagining Uganda's agricultural future," said Bashir Dan, Executive Officer of Stack Carbon Investments UG Ltd. "We're transforming what was once considered waste into a resource that will strengthen our food systems, support our farmers, and position Uganda as a leader in climate-smart agriculture."

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Addressing Critical Agricultural Challenges

Uganda's economy is heavily dependent on agriculture, with tea and coffee serving as major export commodities. However, smallholder farmers and the broader agricultural industry face mounting financial and climate risks due to the prohibitively high cost of chemical fertilizers. The biochar-based alternative offers:

• Cost savings: More affordable fertilizer options for smallholder farmers. Uganda imports over $300 million in chemical fertilizer, creating significant environmental and financial costs for smallholders.
  
  
• Improved soil health: Enhanced carbon content and nutrient retention
  
  
• Carbon sequestration: Removal of approximately 1 million tonnes of CO₂ equivalent over the project lifetime
  
  
• Waste transformation: Productive use of 10 million tonnes of agricultural waste that currently creates environmental hazards
  
  
• Job creation: Over 1,000 employment opportunities for Ugandans coupled with massive technology transfer and capacity building.
  
  
• Yield increases: Projected 45% improvement in crop yields for farmers
  
  

State-of-the-Art Technology and International Partnership

Under the MoU, Jiaxing Tongao Environmental Technology Co. Ltd will supply continuous pyrolysis equipment with a production capacity of 30 tonnes of biochar per day.

"This is a blueprint for how ambitious climate projects can be both environmentally transformative and financially sustainable," noted Nicole Yang, International Development Director at Jiaxing Tongao Environmental Technology Co. Ltd.

‍"We're excited to bring our proven pyrolysis technology to Uganda and support this pioneering initiative. This is our first step outside China and the first in Africa. This technology and biochar has increased yields in China for the tea industry, rice, grapes, and other food crops, backed by scientific research and development with Chinese science and technology institutions."

The project includes:

• Technical training for up to 100 Ugandan operators and engineers to work on-site in mid-western Uganda.
  
  
• Comprehensive installation and commissioning services empowering technology and knowledge transfer to Uganda
  
  
• TerraCapX AS, the Norwegian partner, will serve as natural capital asset manager and facilitate deal flow in carbon credit monetization, building high-integrity projects through various registries including Puro.earth, BioCarbon Standard, and others high integrity standards. TerraCapX will also focus on building community resilience, ensuring community returns on investment, digital monitoring, reporting and verification, and international high-quality execution models.
  
  

Opening Doors to Article 6 Climate Financing

The project positions Uganda to leverage Article 6 mechanisms under the Paris Agreement, opening new avenues for international climate financing. By generating verified carbon credits through biochar production and soil carbon sequestration over 20-year crediting periods, the initiative creates a sustainable revenue model while contributing to global climate goals.

Chloe Hung, Co-Founder and Executive Director of Greenchar Climate Solutions Pte. Ltd. (Singapore), commented on the relevance of biochar carbon removal within emerging Article 6 cooperation frameworks:

“Biochar carbon removal represents a credible pathway for future alignment under Articles 6.2 and 6.4 of the Paris Agreement, subject to host country authorization and methodological acceptance. As Singapore advances its international carbon cooperation frameworks, countries such as Uganda have the potential to host high-integrity mitigation activities that combine durable carbon removal with tangible agricultural and economic co-benefits.”

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Broad Stakeholder Support

The MoU signing ceremony witnessed the participation of key stakeholders, reflecting the project's national significance:

• Uganda Development Bank  – is the country’s national Development Finance Institution (DFI) with a mandate to accelerate socio-economic development in Uganda through climate finance. 
• Uganda Parliament – Host and supporter of the initiative, parliamentary commitment to climate action. 
• Parliamentary Forum on Climate Change – Demonstrating legislative commitment to climate action
• Uganda Bamboo Association – Representing sustainable biomass feedstock opportunities
• Ministry of Water & Environment – Representing the ministry for environment
• Environmental and ecosystem stakeholders – Ensuring alignment with conservation goals. 
• BioCarbon Standard – Building integrity in standard certification and science based methodology setting. 
• Local farmer associations – The ultimate beneficiaries of affordable fertilizer solutions
• Green Char (Singapore) – Empowering farms and businesses in Asia: Transforming 1.3 billion tons of organic waste into profitable biochar carbon credits

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Environmental and Social Safeguards

The project adheres to rigorous quality standards and environmental protocols:

• Science-based certification for carbon removals
• Free, Prior, and Informed Consent (FPIC) documentation for community engagement
• Environmental Impact Assessment (EIA) Plan with regular updates
• Risk management framework addressing social, environmental, and financial risks
• Grievance mechanism for stakeholder complaints
• No child labor or forced labor policies
• Comprehensive insurance coverage for project assets

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‍A Model for Africa's Climate Future

This inaugural project establishes a replicable model for other African nations grappling with agricultural waste, fertilizer costs, and climate commitments. By demonstrating the viability of biochar production at industrial scale, Uganda positions itself as a leader in climate innovation and circular economy solutions.

"We're not just addressing Uganda's challenges—we're creating a template for climate-smart agriculture across the continent," said Kenny Kaluiji, Founder and Chief Growth Officer at TerraCapX AS and Executive Director of the Nordic Climate Finance Summit.

‍"This project proves that climate action and economic development are not competing priorities—they're complementary pathways to a resilient future. As I stated in my opening remarks, the climate crisis is Africa's opportunity to build resilience across all critical sectors—from economic systems to health, supply chains, adaptation, and education."

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Looking Ahead

With equipment installation scheduled for mid 2026 and commercial operations launching by the third quarter2026 upon financial close,  the Nile Char Carbon Removal Project represents a tangible, immediate solution to some of Uganda's most pressing environmental and agricultural challenges. The initiative exemplifies how strategic partnerships, innovative technology, and climate-forward financing can converge to create transformative impact.

As Uganda continues to strengthen its position as a climate leader in East Africa, this project serves as a powerful example of how ambitious climate action can drive economic growth, support vulnerable communities, and build long-term national resilience.

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About the Partners

Stack Carbon Investments UG Ltd is the project developer and operator of the Nile Char Project, a carbon dioxide removal initiative utilizing biochar technology in mid-western Uganda. Stack Carbon is a pioneering climate tech innovator committed to a new model of climate action. We confront the dual challenges of climate change and agricultural degradation head-on, leveraging Africa’s unique potential to deliver verifiable, scalable, and equitable climate solutions. Our work is rooted in two core solutions: Enhanced Rock Weathering (ERW), which applies finely crushed basalt rock to farmlands to permanently capture atmospheric CO₂​, and Biochar, which pioneers a circular economy by converting biomass waste into valuable resources.

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Jiaxing Tongao Environmental Technology Co. Ltd (China) is an industrial biochar leading  pyrolysis technology integrated solution provider delivering continuous production systems designed for controlled, low emissions operations, covering process design, equipment supply, and on-site commissioning for both large-scale plants and decentralized project deployments.

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TerraCapX AS (Norway) is a carbon and natural capital asset management company bridging the gap to climate financing via direct investment in carbon and natural capital solutions in the global growth south. TerraCapX specializes in direct investment in carbon markets and nature-based solutions, pioneering innovative models to unlock the financial value of natural capital. With a focus on delivering both financial returns and measurable climate targets, the company enhances access to climate financing through investment matching between project developers and investors in high-integrity climate projects.

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Greenchar Climate Solutions Pte. Ltd. (Singapore) – A Singapore-based climate solutions company supporting high-integrity biochar carbon removal project development.

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Media Contact

For Press & Investment Inquiries:

• Email: kenny@terracapx.com
• Website: www.terracapx.com
• Address: Edvards Storms Gate, Oslo, Norway

For Project Inquiries:

• Email: ceo@stackcarbon.earth
• Website: stackcarbon.earth
• Address: 8H9R+27V, Nile Ave, Kampala, Uganda

For Technology  Inquiries:

• Email:nicole.yang@tongaotech.cn
• Address: Xinggong Road, Zhongdai Subdistrict Pinghu City, Jiaxing, Zhejiang Province, China

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Related Resources

• Full Memorandum of Understanding (available upon request)
• Project technical specifications (available upon request)
• Carbon credit methodology documentation (available upon request)

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This press release is issued on behalf of Stack Carbon Investments UG Ltd, Jiaxing Tongao Environmental Technology Co. Ltd, and TerraCapX AS. For more information about the Nile Char Carbon Removal Project, please contact the media relations team.

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