8-K: Verde Resources and Ergon Forge Strategic Alliance for Low-Carbon Biochar-Asphalt Commercialization

Verde Resources Inc. and Ergon Asphalt & Emulsions, Inc. have signed a Memorandum of Understanding to advance the commercialization of their proprietary low-carbon biochar-asphalt technology for the U.S. market.

Summary

• Verde Resources Inc. and Ergon Asphalt & Emulsions, Inc. signed a Memorandum of Understanding (MOU) on June 4, 2025, marking a major milestone in their strategic alliance.
• The MOU builds on their February 2025 collaboration to produce a specialized emulsion for cold mix biochar-asphalt surface material, which was deployed at the National Center for Asphalt Technology (NCAT) test track.
• Verde's proprietary emulsifying agent enables low-temperature emulsion production with at least 20% fewer greenhouse gas emissions than conventional binders.
• This innovation allows for the seamless integration of biochar, a carbon-sequestering material, and facilitates a bonding mechanism with aggregates, resulting in a high-performance Biochar-Asphalt surface course.
• In April 2025, this formulation enabled Verde to generate the world's first Carbon Removal Credits from asphalt production and installation, based on the NCAT proof-of-concept project.
• The companies are now working towards finalizing the commercial terms of an exclusive agreement for the U.S. market.
• Simultaneously, they are initiating a rapid validation of Verde's technology at Paragon, Ergon's state-of-the-art asphalt and materials testing lab.

Sentiment

Score: 9

Explanation: The announcement details a significant strategic partnership with a major industry player, Ergon, for the commercialization of a groundbreaking low-carbon technology that has already achieved the world's first carbon removal credits from asphalt. This represents a major positive step towards market adoption and revenue generation, indicating strong future potential.

Positives

• The signing of an MOU with Ergon Asphalt & Emulsions, a trusted industry pioneer, significantly strengthens Verde's strategic position and accelerates commercialization efforts.
• Verde's proprietary emulsifying agent enables low-temperature emulsion production with at least 20% fewer greenhouse gas emissions than conventional binders, offering significant environmental benefits.
• The technology allows for the seamless integration of biochar, a carbon-sequestering material, into asphalt, contributing to carbon removal.
• The Biochar-Asphalt surface course sets a new benchmark for both durability and environmental impact, indicating superior product performance.
• Verde made history by generating the world's first Carbon Removal Credits from asphalt production and installation, validating the technology's environmental efficacy and potential for new revenue streams.
• The partnership aims to turn sustainability into a competitive advantage, delivering practical, profitable, and environmentally responsible solutions without compromising performance.
• Rapid validation of Verde's technology at Ergon's state-of-the-art Paragon lab will expedite market readiness and adoption.
• The collaboration aligns sound economics with environmental responsibility, positioning the companies to lead in low-carbon infrastructure at scale.

Risks

• This press release includes forward-looking statements subject to risks and uncertainties that may cause actual results to differ materially.
• Actual outcomes may be impacted by additional risks and uncertainties outlined in Verde's SEC filings.

Future Outlook

Verde and Ergon are working towards finalizing commercial terms for an exclusive agreement for the U.S. market and initiating rapid validation of Verde's technology at Ergon's Paragon lab. They are poised to usher in a new era of modern, low-carbon infrastructure by commercializing a validated technology that aligns sound economics with environmental responsibility at scale.

Management Comments

• Eric Bava, Chief Operating Officer of Verde Resources, stated: "When you think of the best and most respected name in asphalt, you think of Ergon. This partnership is about more than innovation. Its about equipping Ergon, along with its partners, contractors, customers, and broader ecosystem, with practical tools to reduce Scope emissions and further solidify their leadership in sustainable infrastructure."
• Larry Tomkins, Senior Vice President of Sales & Marketing at Ergon Asphalt & Emulsions, commented: "We want to be on the leading edge of sustainable road materials, and the technologies Verde is bringing to the table make that possible. This next phase is about accelerating adoption and delivering meaningful change in how roads are built-without sacrificing quality or reliability. Were excited to build on the strong relationship weve developed and look forward to whats ahead with Verde."

Industry Context

This announcement positions Verde Resources and Ergon at the forefront of the sustainable infrastructure movement, specifically in road construction. The focus on low-carbon materials, reduced greenhouse gas emissions, and carbon sequestration through biochar integration aligns with global efforts to decarbonize industries and achieve net-zero targets. This partnership could set a new standard for environmentally responsible asphalt production and deployment, potentially disrupting conventional asphalt markets by offering a superior, greener alternative.

Comparison to Industry Standards

• Verde's proprietary emulsifying agent enables low-temperature emulsion production with at least 20% fewer greenhouse gas emissions than conventional binders, indicating a significant improvement over standard industry practices.
• The Biochar-Asphalt surface course is stated to set a new benchmark for both durability and environmental impact, suggesting superior performance compared to existing asphalt solutions.
• Verde generated the world's first Carbon Removal Credits from asphalt production and installation, based on the NCAT proof-of-concept project, highlighting a pioneering achievement in the global asphalt and carbon markets.

Stakeholder Impact

• Shareholders: Potential for increased company value due to accelerated commercialization, market expansion, and leadership in sustainable infrastructure.
• Customers (Ergon's partners, contractors, and broader ecosystem): Access to innovative, environmentally responsible, and high-performance road materials that can help reduce Scope emissions.
• Environment: Significant positive impact through reduced greenhouse gas emissions and carbon sequestration in asphalt production and installation.
• Industry: Sets a new benchmark for sustainable road construction and could drive broader adoption of low-carbon materials and practices.

Next Steps

• Finalizing commercial terms of an exclusive agreement for the U.S. market.
• Initiating rapid validation of Verde's technology at Ergon's Paragon lab.
• Commercializing the validated technology to usher in a new era of modern, low-carbon infrastructure at scale.

Key Dates

Recommendation

Keywords

Verde Resources, Ergon Asphalt & Emulsions, Memorandum of Understanding, MOU, biochar-asphalt, low-carbon infrastructure, carbon removal credits, sustainable road construction, emulsifying agent, greenhouse gas emissions, asphalt technology, NCAT, Paragon lab, carbon sequestration, sustainable materials