Removal and storage of CO2 – hype or a solution to environmental problems?
Until recently, this technology was of interest only to scientists and eco-activists, but today the business community sees it as promising and requiring scaling
Proof of belief in this technology is the rapid increase in the number of deals: by 300% over the last two months. A new market is being created worldwide, becoming key in addressing global climate issues.
For reference: CDR is the process of separating CO2 from industrial and energy sources, transporting it to storage locations, and long-term isolation from the atmosphere: in geological formations, in the ocean, natural carbonates, or for use in industrial processes.
* Microsoft has agreed to purchase 2.76 million tonnes of CO2 over 11 years from the Danish energy company Ørsted. From 2026, at the Asnæs thermal power station, which runs on wood chips in the Danish city of Kalundborg, about 430,000 tonnes of CO2 will be captured and stored annually.
* JPMorgan Chase has signed CDR technology-related deals worth $200+ million. They aim to remove and store 800,000 tonnes of CO2.
* Charm Industrial announced a contract with Frontier: for $53 million, they will remove 112,000 tonnes of CO2 from the atmosphere. Charm Industrial's approach is to convert agricultural waste into bio-oil, which is then injected into underground wells for storage. Otherwise, during the decomposition of plants and wood, CO2 would be released into the atmosphere.
* Startup Equatic, founded at the University of California, announced a five-year agreement with Boeing Corporation. It involves the removal of 62,000 tonnes of CO2 and the supply of 2100 tonnes of "carbon-negative" hydrogen for Boeing's needs.
These deals reflect a significant rise in the CDR market, but they are just a drop in the ocean. To limit temperature rise to a desirable 1.5 degrees, the CDR market needs to grow from the current 74,000 tonnes to 10 billion tonnes.
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