NextGen CDR Facility announces pre-purchase of nearly 200.000 tons of carbon credits to advance carbon capture technologies
Author: House of Eden
- NextGen CDR Facility purchases nearly 200.000 tons of carbon credits
- Big step to promote carbon capture technology
- Promising Carbon Capture, Removal & Storage projects involved
NextGen CDR Facility (NextGen), a joint venture between the South Pole and Mitsubishi Corporation, has announced the pre-purchase of nearly 200.000 tonnes of carbon credits from three separate carbon capture, removal and storage projects. The founding buyers involved are well-known companies such as the Boston Consulting Group, LGT, Mitsui OSK Lines, Swiss Re, and UBS. This transaction is one of the largest in the history of carbon dioxide removal (CDR) from the atmosphere.
Carbon credits, also known as carbon removal credits, are allowances that companies can purchase to offset their carbon emissions. According to the latest report from the Intergovernmental Panel on Climate Change (IPCC), removing CO2 from the atmosphere is imperative to meet global climate goals.
Different projects with one goal
The carbon credits purchased come from various projects such as Summit Carbon Solutions, 1PointFive and Carbo Culture, all of which share the common goal of permanently removing large amounts of CO2 from the atmosphere.
Summit Carbon Solutions is planning the world's largest engineering carbon removal project. 1PointFive is developing the largest Direct Air Capture and Storage (DACS) project in Texas. Carbo Culture in Finland plans to produce biochar that can remove and store 2030 million tons of CO2,5 by 2.
Scaling the Carbon Dioxide Removal Market
The challenge is to increase global CDR rates to meet IPCC requirements. NextGen plans to acquire over 2025 million CDR credits by 1 to achieve this goal. An average price of USD 200 per ton should be aimed for.
NextGen's diverse portfolio includes technologies such as:
- Biomass Carbon Capture and Storage (BiRCS)
- Direct Air Separation and Storage (DACS)
- Increased weathering
- High temperature biochar
- Product Mineralization
As a result, it offers the companies involved risk diversification when purchasing emission certificates.