CDR Currents - Tuesday 12 March

Welcome back to CDR Currents, your guide navigating the dynamic currents of Carbon Dioxide Removal (CDR) trends. Here to provide you with the most recent developments in the CDR environment.

Big Waves: The biggest stories creating waves in CDR this week.?

• Toucan developed the first liquid market for biochar credits, known as CHAR. CHAR functions as an open infrastructure facilitating the automated trade of biochar credits, featuring transparent pricing. Toucan aims for this system to establish the foundation for transparent growth in the biochar credit market.
• The first ethanol BECCS project entered the VCM, on Puro.earth ’s registry. Red Trail Energy’s corn ethanol project registration will also represent the largest durable CDR issuance currently in the VCM, with >150,000 CORCs issued from the first 14 months of operation.
• A new CDR technology has been developed in a coincidental discovery by a biotech firm. AVB Biotech were researching enhanced athletic performance, and produced the technology they call “Dr. Oxygen”. This technology captures carbon from ambient air and releases oxygen.

Here are the highlights shaping the CDR market this week:

Policy + Market

• CHAR by Toucan: The first liquid market for biochar credits . [05.03.24]. Toucan developed CHAR as infrastructure to facilitate the automated trade of biochar CDR credits, verified by Puro.earth . CHAR is the first liquid market for biochar credits.

Projects

• Sirona Technologies, Cella Аnd Great Carbon Valley To Partner On Kenyan DAC Hub . [06.03.24]. Sirona, Cella and Great Carbon Valley are partnering to establish one of the first DAC hubs in Kenya, planned to be operational in 2026. Cella will manage the carbon storage by injection, Sirona will specialise in building low-cost, easily-deployable DAC modules, and Great Carbon Valley will manage project development.
• Runway to net zero: Climeworks partners with SWISS and Lufthansa Group . [07.03.24]. SWISS and Lufthansa Group have signed a long-term DAC offtake agreement with Climeworks, making them Climeworks’ first airline customers.
• AVB Biotech Introduces New Carbon Removal Solution ‘Dr. Oxygen’ . [05.03.24]. Biotech company AVB Biotech, whilst researching enhanced athletic performance, discovered a CDR technique using Molecular Magnetization. This CDR technology has been called “Dr Oxygen”.
• On a mission to combat climate change: Direct Air Capture pioneer Greenlyte raises €10.5m in a pre-Series A round . [06.03.24]. In Greenlyte’s pre-Series A round, €10.5m was raised from multiple investors including Earlybird Venture Capital, Green Generation Fund, Carbon Removal Partners, Dr. Udo Jung and Partech.
• Red Trail Energy is First Ethanol Plant to Enter Voluntary Carbon Market . [05.03.24]. Red Trail Energy’s BECCS project is the first ethanol production facility to enter the VCM, as well as being the largest CDR project currently registered, with >150,000 CORCs from the first 14 months of operation.
• The Next 150 Strikes A Deal For 22,500 Biochar Carbon Credits . [06.03.24]. The Next 150, a carbon removal venture developer and operator, has signed an offtake agreement with Shell Environmental Products. The Next 150 will supply Shell with 22,500 biochar CDR credits from its Mexico biochar facility.

Methodology?

• Deep Sky and atdepth MRV to Advance Direct Ocean Capture in Canada . [07.03.24]. Deep Sky and atdepth MRV have partnered in order to push forward Direct Ocean Capture progress in Canada. atdepth MRV will provide Deep Sky with ocean monitoring systems which will be utilised at Deep Sky’s ocean facility.

Tides of Interest

• Cost of direct air carbon capture to remain higher than hoped . [04.03.24]. Direct air capture is cheaper than you think . [05.03.24]. There have been many discussions around the cost of Direct Air Capture, with a widespread ambition for those costs decreasing. A recent study was published by ETH Zurich, a Swiss university, which posited that the cost of DAC will be much higher than many had hoped, even with medium-term decreases. The study goes on to estimate “the cost of removing 1 tonne of CO2 from the air in the year 2050 to be between 230 and 540 US dollars. This is twice as high as previous estimates.” In response , Milkywire argues that there are already DACCS solutions that have decreased cost at or close to the level that ETH estimates would only be seen at a 1 billion ton per year deployment level. The pre-purchase proposals assessed through the Milkywire Climate Transformation Fund have seen “median price requested by 17 DAC suppliers for removed and permanently stored carbon is 530 USD. ” The discussion on DAC pricing continues, with uncertainty surrounding estimates due to the nature of pre-purchases.

Stay tuned for more updates on the Currents in CDR. If you’re looking to learn more about CDR and how it fits into your carbon investment strategy, reach out to our team.