Verde and Ergon Forge Strategic Partnership for Sustainable Road Materials in North America

Verde and Ergon's Strategic Alliance for Sustainable Road Materials

In a groundbreaking move in the road construction sector, Verde Resources Inc. has entered into a strategic collaboration with Ergon Asphalt Emulsions. This agreement signifies a decade-long partnership aimed at commercializing advanced carbon-sequestering road materials, specifically Verde's innovative BioAsphalt™. The collaboration will take effect across the multibillion-dollar North American asphalt market, setting a new benchmark in sustainable construction.

Overview of the Collaboration

Announced on October 14, 2025, the agreement between Verde's subsidiary, Verde Renewables Inc., and Ergon formalizes a 10-year strategic alliance that could extend for another decade. With Ergon being one of North America's largest asphalt marketers, this partnership aims to leverage their extensive resources and distribution networks to introduce cutting-edge technologies in road construction.

Verde's BioAsphalt™ utilizes a proprietary emulsifying agent that links seamlessly with Ergon’s high-performance asphalt products, including Reclaimed Asphalt Pavement (RAP) and biochar. This combination results in a carbon-sequestering road surfacing material that is not only effective but also significantly mitigates greenhouse gas emissions, positively impacting the environment.

Investment for Future Growth

In a move that further illustrates their commitment to this partnership, both companies executed a term sheet for a $2 million investment from Ergon in Verde. This financial backing reinforces the belief in Verde's innovative technologies and their potential for long-term growth. Expected to close in October 2025, this investment is an essential part of the strategic collaboration's framework.

Benefits of BioAsphalt™ Technology

One of the standout features of Verde's BioAsphalt™ is its unique production capability, allowing it to be manufactured without burning and placed effectively in various weather conditions, including winter. This eliminates the need for heat or solvents during installation, granting considerable economic advantages and showcasing its environmentally-friendly characteristics. The odorless quality of the material ensures safety for workers and end-users alike, making it an appealing choice for front-line construction teams as well as municipalities.

“The partnership with Ergon not only enhances our ability to deliver innovative materials but plays a crucial role in advancing the transition to sustainable infrastructure,” said Jack Wong, CEO of Verde Resources. His enthusiasm reflects the transformative potential this collaboration holds for the infrastructure sector, where low-carbon alternatives are becoming increasingly necessary.

Aligning Sustainability with Business Metrics

As part of their agreement, Verde will share 40% of its future carbon removal credits with Ergon. This innovative approach aligns commercial success directly with measurable environmental impact, further integrating sustainability into the business model. BioAsphalt™ is noted as the world’s first asphalt product to gain verified Carbon Removal Credits, establishing Verde as a leader in this pivotal transformation.

Backed by validations from the National Center for Asphalt Technology (NCAT), Verde's technologies have captured substantial attention in the sustainable construction domain. Recent reports indicate that the global asphalt market exceeds $175 billion, signifying vast opportunities for both companies to implement low-carbon solutions effectively.

The Road Ahead

As investment in infrastructure surges and the demand for sustainable materials rises, the alliance between Verde and Ergon positions both companies at the forefront of an industry evolution. By turning traditional asphalt materials into climate-positive solutions, this partnership not only aims to reduce emissions but also paves the way for long-term economic benefits across the construction landscape.

In conclusion, the strategic relationship between Verde and Ergon is a significant step towards sustainable road construction. Their collaborative efforts promise to redefine infrastructure while addressing the critical need for eco-friendly building materials. With their combined expertise and innovative technologies, they're poised to lead the transformation towards a more sustainable future in road building across North America.