A US-based Direct Air Capture (DAC) company, Heirloom, launches a novel climate solution that sucks in carbon dioxide from the air using limestone and locking it away in concrete. It is the first commercial DAC plant that opened in the U.S.

Capturing carbon from the air was once seen as unlikely. But today, it’s gaining traction as an important tool to fight the climate crisis. Funds from various sources are pouring into carbon removal initiatives and projects. 

In the U.S., the current administration has committed nearly $4 billion towards promoting DAC and other carbon removal initiatives.

How Does Heirloom DAC System Work?

Located in Tracy, California, Heirloom facility aims to capture up to 1,000 tons of CO2 per year using limestone. 

The DAC process involves heating the limestone to high temperatures, breaking it down into CO2 and calcium oxide using industrial kilns. 

The captured carbon dioxide is then stored in concrete for construction purposes. The remaining calcium oxide is spread on trays, exposed to air, and sucks in carbon naturally. After 3 days, the powder is saturated with CO2 and is returned to the kiln, where the process begins again.

Heirloom claims their system uses fewer energy-intensive fans, leveraging limestone’s natural carbon-attracting properties. Other DAC systems use giant fans to pull CO2 from the atmosphere. Heirloom’s modular facilities enable easy expansion by employing larger trays for limestone and adding more trays to the setup.

The DAC company worked with another climate tech innovator CarbonCure which stores the extracted CO2 in their concrete plants near Heirloom’s facility. 

RELATED: Amazon and Microsoft-Backed CarbonCure Raises $80M

The company’s CEO, Shashank Samala, shared that his motivation in developing the technology is the worsening effects of climate change he experiences in his home country, India. Emphasizing the need for impactful climate solutions, he noted that:

“For me, it’s really important to work on a solution that actually has a meaningful, scaled impact on climate change, to actually make a dent on this.” 

However, the DAC facility’s capacity to absorb carbon is limited, capturing only 1,000 metric tons of CO2 annually. That’s only a small fraction of what a gas-fired power plant emits yearly.

But the company has an ambitious goal of removing 1 billion tons by 2035, subject to considerable scale up challenge. The company plans to triple this capture capacity each year over the next 12 years to reach that goal.  

The Hurdles and The Hope in Carbon Capture

That level of scale up needs a lot of money and the good news is that tech companies are significantly supporting DAC. 

For instance, Microsoft has inked a long-term carbon removal agreement with Heirloom. Their deal is to capture up to 315,000 metric tons of CO2, offsetting its own emissions towards its net zero targets. Moreover, Frontier, a carbon removal fund, has pledged massive support to Heirloom and similar carbon capture ventures. 

READ MORE: Microsoft’s $200M Carbon Removal Deal Advances Heirloom’s DAC Solution

Heirloom expresses its commitment to using renewable energy from local providers and refrains from accepting investments from oil majors. They asserted that the carbon captured from DAC won’t be used to enhance oil extraction, aligning with their principles of responsible environmental stewardship.  

The DAC firm’s latest achievement involves securing a substantial $600 million award from the Department of Energy to establish a processing hub in Louisiana capable of handling up to a million tons of carbon per year. The agency is also supporting the other DAC plant in Texas developed by Occidental Petroleum.

However, despite such advancements, there are still obstacles in significantly reducing carbon dioxide levels. 

A mechanical engineer highlights that direct air capture technology remains costly and demands substantial energy. A scientist also underscores the economic challenges in relation to the scale of the atmosphere. He pointed out the uncertainty of entirely resolving the climate crisis, even with the application of all available solutions. 

Despite these challenges, Samala remains hopeful that the world increasingly recognizes the important role of DAC in tackling climate change. Comparing carbon capture with waste collection, he said that people should consider paying for removing carbon they generate. 

“We need to pay for the CO2 we are putting out there,” he asserts, highlighting the necessity for greater accountability regarding carbon emissions. 

Capturing Carbon and Generating Credits

Notably, climate-tech startups focusing on carbon emissions technology received $7.6 billion in venture capital funding in Q3 this year. This VC funding result is defying the downturn trend in fundraising.

Heirloom offers carbon credits that companies and government entities can purchase to offset their emissions. These credits represent an exchange where an individual or company pays for CO2 emissions removed by an entity specializing in carbon capture.

Prominent companies like Stripe, Shopify, Klarna, and Microsoft are among Heirloom’s initial buyers of these credits. The advanced purchasing model allows organizations to offset their emissions by investing in carbon removal initiatives.

RELATED: Carbon Dioxide Removals (CDR) Purchases Jump 437% in First Half of 2023

Positioned as the first commercial DAC plant in the U.S., Heirloom’s system leverages natural properties of limestone that require fewer energy-intensive mechanisms compared to conventional DAC systems. Despite challenges, Heirloom has set ambitious goals, aiming to scale up its carbon capture capacity significantly by collaborating with tech giants and securing substantial funding. The company emphasizes the critical role of DAC in mitigating emissions and fostering a sustainable future.

The post Heirloom’s Breakthrough: The Rise of Carbon Capture Revolutionizing Climate Solutions appeared first on Carbon Credits.

The Attorney General’s office in New Hampshire is examining a plan proposed by Bluesource Sustainable Forest Company regarding the reduction of logging activities on a significant portion of the state’s forests as policymakers are working on bills associated with the use of carbon credits. 

The area, covering 146,000 acres, was initially safeguarded for logging and recreational purposes through a conservation easement. The plan did not anticipate revenue generation through carbon credit markets, a recent development in the industry.

Bluesource, the new owner, aims to curtail logging by around 50% on this massive tract of land in 2024. That area represents about 3% of the state’s landmass.

Though the plan’s intent is to increase forest carbon sequestration, it affects local mills, loggers, the region’s economy, and potentially taxpayers. 

The Value of Keeping Trees Standing 

The shift towards less logging is due to the increasing value of preserving trees for carbon credits. It is a market-driven initiative aimed at reducing carbon emissions.

According to Energy Transitions Commission (ETC)’s report, the current price of carbon credits for avoiding deforestation isn’t enough to cover the marginal cost of avoiding commodity-driven deforestation.

The Attorney General’s office is assessing whether Bluesource’ planned reduction aligns with the original agreement established to protect the land.

The plan outlines the company’s goals, which are subject to the easement.

The easement acts as a safeguard, ensuring that the land remains protected from development. It also dictates how it should be utilized while outlining the responsibilities of both the state and the landowner.

From the original 171,500 acres, 25,100 acres were allocated to the state. Out of this, 25,000 acres were set aside for wildlife habitat management, while an additional 100 acres were allocated to expand the Deer Mountain Campground.

The easement guarantees public access for various traditional recreational activities such as hiking, hunting, fishing, trapping, snowmobiling along designated trails. However, it limits “non-forest activities” to a maximum of 10% of the property.

In addition to preserving open spaces, protecting natural resources, and nurturing wildlife habitats, the primary objective of the easement is to maintain the property as a financially sustainable land area for timber, plywood, and other forest product production. It explicitly permits “forest management activities,” including various methods of cultivating, harvesting, and removing forest products.

Bluesource’s move to participate in the carbon credit market wasn’t foreseen when the conservation easement was formulated two decades ago.

Promoting Forest Carbon Credits in the US

For ages, forests have been valued mainly for the timber they provide. However, efforts to combat climate change have given them an additional value by recognizing their ability to absorb and hold carbon. 

Forests can trap nearly double the amount of carbon they release, acting as significant carbon storage. 

In 2020, the U.S. Forest Service calculated that per acre in New Hampshire, forests held around 87 tons of carbon by 2018. Approximately 42% of this was in above-ground growth, with 38% stored in the forest soils. 

When trees are cut down, processed, and used to create solid wood products like furniture or building materials such as plywood, their carbon remains stored within these products for potentially hundreds of years.

In 2003, there was no established carbon market in the US. Hence, the easement related to the Connecticut Lakes forest didn’t address managing the forest for carbon sequestration, storage, or carbon credit trading.

In 2022, Bluesource Sustainable Forest Company (BFSC) acquired the Connecticut Lakes Headwaters Working Forest, totaling a million acres managed. Thus, BFSC positions itself as “the largest private forestland owner entirely focused on addressing climate change.”

In 2021, Bluesource partnered with Oak Hill Advisors, a subsidiary of T.Rowe Price managing $500 billion in assets, to acquire forest lands, including those in New Hampshire. 

READ MORE: $1.8 Billion Bet on the Carbon Markets

BFSC’s president, Roger Williams, said that the collaboration would transition the company from developing projects generating carbon credits to becoming a forest land asset manager.

Additionally, last year, BFSC merged with Element Markets, a majority-owned entity of TPG Inc., an alternative investment manager. Element Markets describes itself as the primary creator and promoter of carbon and environmental credits across North America.

Companies that want to reduce their carbon emissions can buy the credits to offset their footprint. Each credit corresponds to one tonne of reduced or removed carbon from the air. 

The Debate Goes On

Bluesource intends to reduce timber harvests by over half of what has been cut in recent years, particularly between 12,000 and 14,000 cords for the year ending April 2024.

Meetings, discussions, and proposed legislative actions are underway to address the broader consequences of the plan on the local economy. The potential outcomes could have a profound impact on the logging industry, the local community, and the area’s fiscal landscape.

In response to concerns, Bluesource is engaging with legislators and stakeholders, offering expertise and collaboration to deal with the situation. 

According to Patrick D. Hackley, director of the state Division of Forests & Lands, Bluesource had submitted its revised Annual Operating Plan, noting that:

“We are now in the review process… to ensure the new harvesting plan, based on the company’s participation in California’s Air Resource Board Compliance (Carbon) Offset Program, complies with the purpose and all provisions of the conservation easement.”

Bluesource’s initiative to reduce logging for carbon credit generation within a preserved land area is raising debate in New Hampshire. The company’s move intersects with the long-standing conservation easement, provoking discussions on economic impact and forest carbon credit strategies.

RELATED: Urban Forest Carbon Credits: Potential Market for Climate Investors

The post Bluesource’s Carbon Credit Strategy: An Easement Debate Shaping New Hampshire’s Forests appeared first on Carbon Credits.

This year has seen the rapid growth of the carbon capture, utilization, and storage (CCUS) industry, owing to strong global policy support for projects and initiatives increasing capture capacity. 

According to research company BloombergNEF (BNEF), the industry will see a 50% increase by 2025. It will reach 420 million metric tons a year by 2035. 

Investments in CCUS infrastructure amounted to $6.4 billion in 2022, while funding this year will reach $5 billion. 

CCUS Growth and Expansion 

The CCUS market has initially focused on natural gas processing. But as decarbonization efforts intensify, it is expanding into carbon-intensive sectors, including power, cement, iron and steel. 

BNEF reported that the industry captured over 140 million metric tons per annum (mtpa) from 2022. It is forecasted to grow at a 18% compound annual growth rate and capture 420 mtpa by 2035. This represents 1.1% of current global annual emissions. 

The major sectors that will drive CCUS expansion include ammonia or hydrogen production and power generation. Together, they will account for 33% of announced carbon capture capacity. 

It is interesting to note that the cement sector has experienced a massive increase in proposed carbon capture capacity – 175%.

Startups are also developing innovative technologies that can capture CO2 from the atmosphere and lock it away for good by injecting it into the cement.

The BNEF market outlook further noted that the US will remain the leader in deploying carbon capture. It will keep 40% in market share in 2035, followed by the UK at 16% share.

RELATED: US DOE to Grant $500M to New Carbon Transport Infrastructure

Canada ranks third at 12% while other large country emitters, including Australia, the Netherlands, and China will take 3-4% share. 

The Setbacks

While the future of CCUS looks promising, some challenges are just around the corner. 

The major hurdle is the lack of transport and storage capacity in deploying carbon capture projects. One solution to this challenge is commercialization as what some national governments and companies are promoting. 

Yet, the high costs in constructing storage are not acknowledged by policies such as the EU’s Net Zero Industry Act. 

In the US, permits for transport and storage were denied. Recently, the Environmental Protection Agency (EPA) called on states to have their own regulatory frameworks for CCUS. This followed when policymakers questioned the agency’s limited permit issuances. 

In the private sector, oil majors aiming to be first movers in advancing carbon capture and storage turn to mergers and acquisitions. For instance, ExxonMobil acquired Denbury, a small-scale oil business running an extensive CO2 pipeline transport network across the Gulf Coast. 

In a similar move, Occidental Petroleum also bought Carbon Engineering, a Canadian Direct Air Capture (DAC) supplier for >$1 billion. 

Remarkably, the BNEF highlights that DAC is far more costly than previously thought. This carbon capture technology costs up to $1,100 per ton but can potentially drop to $400/ton by 2030. This decrease would be possible if the industry can develop enough supply chains to scale the technology. 

The cost of capturing carbon differs across industries. In facilities where CO2 concentration is high, the cost ranges from $20-$28 per ton while for industrial sources, it can go up to $80 a ton of CO2. 

Total costs for CCUS can increase to $92-$130 per ton of CO2, and it can swell 2-4x more for transporting liquid CO2. 

Industries like cement, iron and steel, and power, which emit a lot of CO2, are using carbon capture methods more. This is driven by the incentives provided by the government in the US and EU, making CCUS more practical. 

For instance, building new gas power plants with carbon capture may be less expensive than making power without capturing carbon in Germany by 2024, especially when factoring in carbon price. 

READ MORE: Carbon Capture to Urgently Scale to 7B Tonnes/Year 

The CCUS industry is experiencing rapid growth and diversification across sectors due to strong global policy support. Although promising, challenges such as transport and storage capacity constraints, high construction costs, and regulatory hurdles pose significant barriers. Addressing these challenges will be crucial for CCUS to play a substantial role in global emissions reduction.

The post CCUS Capacity Grows 50% in BNEF 2023 Market Outlook appeared first on Carbon Credits.

After a record-breaking year of devastating effects of climate change, from record wildfires in Greece and Canada to floods in Libya, the United Nations COP28 conference comes at a decisive moment for international climate action to put us on a safer path.

Temperature records are being beaten and climate effects are felt worldwide. As climate scientist Zeke Hausfather described global temperature data for September, it’s “absolutely gobsmackingly bananas”.

Source: Zeke Hausfather

As seen in Hausfather’s chart, last month’s temperature beat the prior monthly record by over 0.5°C, and was around 1.8°C warmer than pre-industrial levels.

So, what is the world doing about it? How do national governments tackle the climate crisis? The UN COP28 summit will show humanity’s progress in meeting the climate goals first set at the landmark Paris Agreement. Representatives from around 200 countries will come together to talk about it and agree on crucial climate actions. 

In case you’ve never heard of COP28 or you most likely have if you’re following the climate change conversation but need a fresher, this comprehensive article will tell you the things you need to know about this defining climate summit. 

First, let’s talk about the COP.

What is COP? 

The Conference of the Parties to the Convention or COP is the product of the Rio Summit and the launch of the United Nations Framework Convention on Climate Change (UNFCCC). 

Every year since the creation of the COP, member countries meet to agree how to deal with climate change. Tens of thousands of delegates from around the world gather together at the climate conference. Head of states, government officials, and representatives from international organizations, private sector, civil society, nonprofits, and the media are attending. 

RELATED: Climate Change History & COP27: Here’s the Scoop

The COP’s 21st session led to the birth of the Paris Agreement, a global consensus to collectively achieve three important goals:

Limit global temperature rise to 1.5°C above pre-industrial levels by 2100,
Act upon climate change, adapt to its impact, and develop resilience, and
Align financing with a “pathway towards low greenhouse gas emissions and climate-resilient development”.

Here’s the COP in a timeline, alongside global carbon emissions record.

This year’s UN climate convention is the 28th session of the parties or simply COP28.

How Important is COP28?

So what makes this COP session significant and different from the previous climate talks? The Global Stocktake. 

The GST is the first ever report card on the world’s climate progress. It shows exactly how far we are in achieving the Paris Agreement goals set in 2015. Are we on or off track?   

Though the details won’t be in until COP28 takes place in November 30 – December 12 in  Dubai, United Arab Emirates (UAE), there’s a hunch that we need rapid climate actions and have to act now. COP28 is our chance to do that. 

Plus the fact that UAE is a major oil producing country makes COP28 quite different and controversial. Many are raising concerns that the agenda doesn’t match well with the host country’s plan to increase oil production. 

Some environmental groups noted that it could result in weak results leading to a point where curbing fossil fuels has to be ratcheted up rapidly to make the 1.5°C achievable. Their point is valid. About 100+ years ago, there was far less carbon released into the atmosphere than there is today.

The designation of Sultan al-Jaber as COP28 president-designate incited a furious backlash from climate activists and civil society groups. They warned that there could be a conflict of interest and that protesters would be restricted. 

Dr. Sultan al-Jaber is a managing director and CEO of the Abu Dhabi National Oil Company (ADNOC). As appointed president, he would lead the talks, consult with stakeholders, provide leadership roles, and broker any agreements produced. 

Given his position within the fossil fuel industry, it raised concerns about impartiality in the climate talks.

But putting aside these controversies, it’s more important to know what would be the specific talking points for this year’s climate summit. 

What Are the Focus Issues to Watch at COP28?

Similar to previous sessions, the host nation sets the tone and direction of discussion for the conference. For this year’s COP28, here are the major areas to be deliberated.

Money Matters

As the case with the rest of the COPs, climate finance is one of the key issues. More so, if the money involved is worth $100 billion annually which was pledged by developed nations to developing countries. 

Climate finance is critical because developing nations need resources, financial and technological, to enable them to adapt to climate change. 

It was back in 2009 when rich countries promised to provide $100 billion from 2020 onwards to help poor nations in dealing with the impacts of climate change. However, until now that pledge has never been met, stirring frustrations for many developing countries. 

The potential consequences of failing to meet the promised target in a timely manner could extend to the broader negotiations. It heavily affects the trustworthiness of governments to fulfill their commitments.

At COP28, governments will persist in their discussions on a fresh climate finance objective, aiming to supplant the existing $100 billion commitment. Though the deadline for reaching an agreement is 2024, substantial progress in Dubai remains pivotal to establishing a foundation for next year’s COP. 

Moreover, financial matters will prominently feature in talks on the Green Climate Fund and on loss and damage. 

Ultimately, deliberations and pledges related to the amplification and execution of climate finance may impact various other areas of negotiation. It may also help propel more climate actions or impede progress. 

Where’s the ‘Loss and Damage’ Fund?

The concept of ‘loss and damage’ compensation isn’t new; it has been around for some time. It’s an arrangement wherein rich nations should pay the poorer ones that have suffered the brunt of climate change. 

It differs from the funds to help poor nations adapt to the effects of climate change. While it gives hope for low-income countries heavily impacted by the climate-related disasters, it left several unanswered questions. 

Unsurprisingly, one big question is:

Who’s going to pay into the fund and who deserves to get it? 

This issue has been unresolved for some time and was also discussed in COP27 at Egypt last year. Different organizations have different suggestions as to how much the fund needed to pay for the loss and damage.

For one study, the funding can be as high as $580 billion each year by 2030, going up to $1.7 trillion by 2050. 

Matter experts noted that the fund has been the “underlying climate finance discussions for a long time”. But after years of stalemate, the question hasn’t been resolved still. 

Governments decided and agreed to form a ‘transitional committee’ at COP27. At COP28, they expect to come up with the recommendations on how to operationalize the fund. 

RELATED: Carbon Credits Take Center Stage at COP27

Putting Food on the Table

Leading up to COP28, there’s been growing attention on food systems and agriculture in global discussions.

The current food systems are failing us; over 800 million people face hunger right now. Climate-related droughts and floods are destroying farmers’ crops and livelihoods. At COP28, world leaders must devise a plan that changes the ways the world produces and consumes food.

The COP28 presidency and the UN Food Systems Coordination Hub launched the COP28 Food Systems and Agriculture Agenda in July. It urges nations to align their national food systems and agricultural policies with their climate plans. 

The agenda emphasizes the inclusion of targets for food system decarbonization in national biodiversity strategies and action plans.

Like the other issues above, food systems were also part of the COP27 summit. But there was also still some resistance to fully adopting a holistic approach to them. 

Sultan al-Jaber is encouraging both private and public sectors to contribute funds and technology to transform food systems and agriculture. He also emphasized that food systems contribute to a significant portion of human-generated emissions. In line with this, the UAE and the US team up to promote their Agriculture Innovation Mission for Climate (AIM4C).

The increased focus on food at COP28 has been well-received. The GST synthesis report even stresses the need to address interconnected challenges, including demand-side measures, land use changes, and deforestation. 

It’s important that actions to change food systems work together with efforts to speed up the transition to cleaner energy. Transformations in both sectors are crucial to meeting climate goals.

Moving Cities At the Front 

For many years, UN climate summits have historically concentrated solely on national-level climate action, overlooking a crucial aspect. 

Urban centers, responsible for around 70% of global CO2 emissions, face heightened vulnerability to climate change impacts, too. To restrict warming to 1.5C, all cities must achieve net zero emissions by 2050. 

Research indicates that existing technologies and policies can cut urban emissions by 90% by 2050. But cities alone can realize only 28% of this potential. 

Full decarbonization requires robust partnerships between local and national governments, along with engagement in international climate initiatives.

At COP28, it’s crucial for national, regional, and local governments to intensify partnerships, accelerating progress toward climate goals.

Moreover, national governments should also integrate urban areas more effectively into their climate plans. This includes reinforcing city-centric targets in their NDCs and National Adaptation Plans, expanding public transit, enhancing building energy efficiency, and ensuring that subnational actors have easy access to climate finance. 

COP28: The Deciding Moment for Climate Action 

Leaders at the national, corporate, and municipal levels must not only showcase progress in fulfilling previous commitments but also unveil new, ambitious plans. These plans are vital to curbing the worsening impacts of climate change, safeguarding both people and the environment.

The Global Stocktake was established to reach the objectives of the Paris Agreement. It also particularly highlighted the need to phase out unabated fossil fuels, which are the major culprit in releasing carbon. It will face its inaugural evaluation at COP28, presenting a crucial assessment of decision-makers’ commitment to its goal. 

READ MORE: Net Zero Pledges 2022 – Climate Targets are “Unacceptably Low”

The report card of the world’s collective climate action was out. And the data isn’t good. COP28 is our best chance to make a critical course correction. It isn’t just a conference; it’s a decisive moment for leaders to demonstrate commitment to curbing harmful emissions. 

The post What Is COP28? Key Issues to Watch Out at 2023 Climate Summit appeared first on Carbon Credits.