NextGen to buy CDRs from carbon removal projects
NextGen CDR Facility (NextGen) - a joint venture between global climate project developer, South Pole, and Japan’s Mitsubishi Corporation - has announced the advance purchase of 193,125 metric tons of carbon dioxide removals (CDRs) from carbon removal projects, NextGen said on April 26.
The advance purchase of carbon removals will include CDRs from direct air capture and storage (DACS) project, being developed by PointFive in Texas, which is expected to remove and permanently store up to 500,000 metric tons/year of carbon dioxide once fully operational.
NextGen will also purchase CDRs from carbon removal project, the Summit Carbon Solutions' $5.1bn biomass carbon removal and storage (BiCRS) project, being implemented in the Midwestern region of the US, which will remove over 9mn mt/yr through the capture, transportation and permanent storage of biogenic carbon removals once completed.
NextGen will also purchase CDrs from climate tech company Carbo Culture's inaugural biochar project (C1) in Finland. The company is scaling up with the first series of commercial facilities planned to produce biochar to remove and durably store 2.5mn mt/yr of CDRs by 2030.
All projects will be certified and verified under standards endorsed by the International Carbon Reduction and Offset Alliance (ICROA) to ensure an independent third-party assurance that the projects are of the highest environmental integrity and benefit local communities, NextGen said.
“By bringing together high integrity buyers and sellers of ICROA-endorsed certified CDRs, NextGen is helping to create the conditions the market needs to scale: making permanent CDRs accessible for corporate buyers with an average target price of $200 per tonne, enabling risk diversification through a portfolio approach, and providing access to deep market expertise,” it said.
Companies in NextGen will have access to a diverse global portfolio of carbon removal technologies and storage solutions, including Biomass Carbon Removal and Storage (BiCRS), Direct Air Capture and Storage (DACS), Enhanced Weathering, High-Temperature Biochar and Product Mineralisation – allowing them to demonstrate and operationalize commitments to long-term CDRs, while addressing the challenge that technology companies face in urgently scaling their projects.
NextGen is backed by founding buyers Boston Consulting Group, LGT, Mitsui O.S.K. Lines, Swiss Re, and UBS.