In the United States (US), Verde Resources Inc. (Verde), a road materials company offering proprietary, environmentally sustainable solutions, has announced the signing of a 10-year definitive license agreement between its wholly owned subsidiary, Verde Renewables Inc., and Ergon Asphalt & Emulsions, Inc., the largest asphalt marketer in North America.
According to a statement, this agreement formalizes a long-term strategic alliance to commercialize Verde’s specialized emulsion and carbon sequestering “BioAsphalt” road construction surface materials across the United States, Mexico, and Canada.
The agreement has a 10-year term with an option to extend for an additional 10 years.
Ergon Asphalt & Emulsions is a subsidiary of Ergon, Inc., a diversified global organization engaged in multiple industries.
Privately held Ergon is an industry pioneer in asphalt innovation and supply and employs more than 4,000 people and serves customers and partners in over 90 countries worldwide.
Building on collaboration
Building on the successful collaboration that began with a Memorandum of Understanding (MoU) earlier this year, Verde and Ergon will advance the deployment of innovative low-carbon technologies that integrate Verde’s proprietary emulsifying agent with Ergon’s high-performance asphalt, RAP (Reclaimed Asphalt Pavement), and biochar to produce and commercialize a carbon-sequestering road surfacing material across North America.
Under the terms of the agreement, Verde is licensing its proprietary technologies to Ergon for use in the manufacturing, marketing, and distribution of advanced road construction products.
Our milestone commercial collaboration with industry leader Ergon marks a major achievement in our mission to bring innovative solutions to market and accelerate decarbonization across emission-intensive infrastructure, said Jack Wong, CEO of Verde Resources.
The agreement also grants Ergon the right to use Verde’s trademarks and access ongoing technical services to ensure integrity and transparency, verifying that every tonne of carbon dioxide (CO2) sequestered is accurately quantified, tracked, and validated.
Our agreement with Verde strengthens Ergon’s ability to deliver sustainable, next-generation technologies to the road construction industry, said Patrick Nation, President of Ergon Asphalt & Emulsions.
Ergon acquires stake in Verde
In addition to the commercial agreement, both companies have executed a term sheet for a US$2 million investment by Ergon in Verde.
The investment underscores Ergon’s confidence in the long-term growth of Verde’s technologies and further solidifies the true strategic nature of the alliance. The transaction is expected to close in October 2025.
Together with Ergon, we will deliver transformative, common-sense solutions that will redefine the roads of the future for the benefit of both the environment and the economy. Ergon’s deep industry expertise and extensive North American footprint make them not only the best in the business, but also the ideal commercial partner for us to scale the impact of Verde’s technologies, said Jack Wong.
Verde’s BioAsphalt can be produced burnerless and placed year-round, even during winter, without requiring heat or solvents during installation.
This extends production and paving seasons, unlocking additional economic benefits while dramatically reducing greenhouse gas emissions. It is also odorless, making it safer for frontline workers and more sustainable for Ergon’s customers.
We are excited to integrate Verde’s solutions and work to accelerate the adoption and commercialization of the end product over the next year, with the goal of enhancing how roads are built in a sustainable way without compromising quality or reliability. Verde’s technologies align seamlessly with our ongoing commitment to sustainable solutions and long-term growth strategy, and we are excited to bring these solutions to our customers and partners efficiently, effectively, and with strong business discipline across North America, said Patrick Nation.
First to generate verified Carbon Removal Credits
BioAsphalt is also the first in the world to generate verified Carbon Removal Credits, certified through Puro.earth, and purchased by one of the world’s largest financial institutions earlier this year.
This breakthrough positions Verde as a pioneer in transforming asphalt from a traditional emitter into a climate-positive material, actively mitigating Scope 1, 2, and 3 emissions across the construction value chain—turning roads, streets, and pathways into carbon sinks.
To align incentives with sustainability metrics, Verde will share 40 percent of its future Carbon Removal Credits with Ergon, linking commercial success directly to measurable environmental impact.
Verde’s technologies, including its carbon sequestering BioAsphalt, have recently earned early validation from the National Center for Asphalt Technology (NCAT), positioning the company at the forefront of low-emission construction innovation.
According to recent data published by Global Growth Insights, the global asphalt market is valued at more than US$175 billion, with a significant portion concentrated in North America.
This represents an immense opportunity to scale low-carbon solutions across the continent.
As infrastructure investment and carbon markets converge, the alliance between Verde and Ergon is poised to lead a generational transformation of the road-building industry, turning a critical source of emissions into a powerful engine for carbon removal and long-term value creation.
