Carbon Negative Technology: Turning Emissions into Opportunity
Peter Perri III
Investment Banking: Power, Climate, Infra || Energy Transition || Project Finance || M&A || Exit Strategies || Venture Capital || Private Equity || Helping Leaders Execute Great Deals & Make a Difference.
What if we could not only curb GHGs, but actively negate them? Today, there are a growing number of carbon negative solutions that not only reduce emissions, but capture more carbon than they emit. This effectively reverses our usual carbon footprint and has the potential to not only mitigate climate change, but also to create profitable business opportunities. Let’s explore a few of today’s top options.
Biochar: From Waste to Carbon Sink
What It Is: Biochar is essentially charcoal made from organic materials like wood chips or crop residues, produced through pyrolysis — a process that heats organic matter in the absence of oxygen.
How It Captures Carbon: When organic waste is subjected to pyrolysis, the carbon in the material is transformed into a stable form that can remain sequestered for hundreds, even thousands, of years. By incorporating biochar into soil, carbon is effectively locked away, reducing atmospheric CO2 while also benefiting soil health.
Profit Potential: Biochar is increasingly used in agriculture as a soil additive, helping improve fertility, retain water, and ultimately enhance crop yields. This dual benefit of enriching soil and capturing carbon has made biochar attractive to farmers and environmentalists alike. Carbon credit markets are starting to recognize biochar as well, creating an additional revenue stream for producers. One example is Charm Industrial , a startup that removes carbon by converting agricultural and forest biomass residues into bio-oil. The company recently partnered with the U.S. Forest Service on a joint carbon removal and wildfire prevention project.?
Direct Air Capture with Carbon Transformation: Turning CO2 into Products
What It Is: Direct Air Capture (DAC) technology involves machines that pull CO2 directly from the atmosphere. The captured CO2 can then be permanently stored or transformed into a variety of valuable products.
How It Captures Carbon: DAC captures CO2, which can then be turned into fuels, chemicals, and materials that would otherwise rely on fossil carbon. This approach provides a way to recycle atmospheric CO2 into essential products, effectively keeping it out of the atmosphere.
Profit Potential: Companies are finding ways to monetize captured carbon by converting it into sustainable aviation fuel (SAF), plastics, and even household goods like perfume or alcohol. By turning CO2 into useful products, DAC technology not only reduces carbon in the atmosphere but also creates valuable alternatives to petrochemical-based goods. Startup Twelve is a leader in this space, having recently announced $645 million in funding to produce jet fuel, e-chemicals, and other fossil fuel derived products.
Algae Cultivation: Fast-Growing Carbon Capture
What It Is: Algae are water-based plants that absorb CO2 during photosynthesis and can double in mass within hours, offering a high-efficiency option for carbon capture.
How It Captures Carbon: Algae farms grow in controlled environments where CO2 emissions, like from industrial exhausts, are fed to the algae for photosynthesis, capturing carbon as biomass.
Profit Potential: Algae biomass can be used for biofuels, food supplements, animal feed, and even cosmetics. One company focused on this pathway is Airbuild Inc , a startup that embeds algae farms into everyday structures like buildings or parking garages . Airbuild plans to produce algae for use in sustainable materials and biofuels, while sequestering carbon from the atmosphere at the same time.
The Market and Investment Potential
The potential for carbon-negative technologies is being recognized not only by environmental advocates but also by the financial community. In fact, the carbon negative materials market is expected to grow at a CAGR of 11.3% from 2024 to 2034 based on a study by The Niche Research. Governments and corporations are investing in carbon-negative technologies as a way to meet climate goals while also tapping into new revenue streams through the sale of products, carbon credits, and by-products.
Why This Matters: Carbon-negative technologies are shifting perspectives from merely reducing emissions to actively reversing them. As markets mature and technology advances, the financial and environmental incentives for carbon-negative solutions are aligning more than ever. It’s a space that’s worth watching as we move toward a more resilient, low-carbon economy.
Climate Deals of the Month
AIR COMPANY Raises $69M for Carbon Conversion Technology
AIR COMPANY 's proprietary AIRMADE? tech can transform captured CO2 and hydrogen into a wide range of synthetic fuels and chemicals. Right now, the company is particularly focused on SAF and has commercial partnerships with JetBlue and Virgin Atlantic.
Carbon Capture Company Mantel Secures $30M Series A
Mantel ’s molten borate technology offers a low-cost, energy-efficient method to capture CO2 at high temperatures—perfect for industries like cement, steel, and glass that are notoriously hard to decarbonize. This tech could reduce carbon capture costs by over 50% .
Climeworks and Coca-Cola HBC Launch Sparkling Water Made From Captured Carbon
Climeworks and Coca-Cola HBC have launched Valser, the first carbon-neutral sparkling water , using carbon captured directly from the air. Climeworks is operating multiple ambitious projects, including Project Orca, which can capture up to 4,000 metric tons of CO2 per year, and Project Mammoth, which can capture up to 36,000 tons.
For more from Climate Buzz, keep an eye out for next month's issue.
Disclaimer: This post is made for entertainment purposes only. Nothing in this post constitutes investment advice.