Svante Technologies, a Canadian carbon capture company, has launched the world’s first commercial-scale gigafactory for carbon capture filters. This is a big step in the fight against climate change.

Located in Burnaby, British Columbia, the facility officially opened in May 2025. The factory will help speed up the use of carbon capture and storage (CCS) technologies by making the production of carbon filters faster and more cost-effective.

With rising global emissions and increased focus on net-zero goals, Svante’s new plant offers a timely solution. The gigafactory is built to capture millions of tons of carbon dioxide (CO₂) every year. It helps industries cut their carbon footprint and meet regulations. As the carbon capture market continues to grow, the facility could help change how industries respond to climate change.

Scaling Up: Inside the Burnaby Gigafactory

The 140,000-square-foot facility, named the Redwood City Gigafactory, is the first of its kind. Svante makes solid sorbent filters. These filters trap CO₂ from factories and even from the air. These filters are then integrated into carbon capture systems used in sectors such as cement, steel, hydrogen, and power generation.

Svante’s filter technology relies on a material called metal-organic frameworks (MOFs). These materials are known for their high surface area and ability to trap gas molecules like CO₂.

Compared to traditional systems, Svante’s filters are lighter, more compact, and faster to produce. They need less energy to regenerate. This leads to lower costs and fewer emissions during operation.

The facility can produce filter modules to capture up to 10 million tonnes of CO₂ each year, according to company estimates. That’s roughly the equivalent of taking over 2 million gasoline-powered cars off the road each year.

The Redwood factory is designed for rapid manufacturing and can scale up production as demand grows. The factory uses automation and digital tools. It also monitors data to boost quality control and cut waste.

Partnerships and Financial Support Fuel Growth

The construction and launch of the gigafactory would not have been possible without strong public and private backing. Svante raised $318 million in total since 2007, including a major $145 million Series E fundraising round in 2022.

Investors include: Chevron New Energies, United Airlines Ventures, Samsung Engineering & Construction, Temasek, GE Vernova, and Breakthrough Energy Ventures.

In addition to private investment, the Government of Canada contributed CA$25 million through its Strategic Innovation Fund. This funding sped up factory construction. It also shows Canada’s commitment to leading in carbon management technologies.

Beyond financing, Svante is also working with several partners to expand its reach. Here are some of their major partnerships:

• Samsung E&A signed a joint development agreement to build skid-mounted modular carbon capture plants.

• Climeworks, a direct air capture company, is using Svante filters for its next-generation CO₂ removal systems.

• Tenaska, a U.S. energy firm, is working with Svante to develop end-to-end CCS projects that include capture, transportation, and storage of CO₂.

• BASF signed a commercial agreement to supply Svante with CALF-20, an advanced MOF sorbent used in its filter systems.

These partnerships lower project risk, simplify deployment, and encourage CCS technology use in various sectors.

• READ MORE: Shell, Equinor, and TotalEnergies Expand Northern Lights CCS with $714 Million Investment

Market Drivers and Industry Demand

Demand for carbon capture technology is growing rapidly. According to BloombergNEF, the global market for carbon capture and removal could reach $100 billion by 2030. This growth comes from stricter climate rules, net-zero goals, and rising investment in clean tech.

• If all the planned carbon capture projects are built and running by 2030, they could remove around 279 million tons of CO₂ a year—still just 0.6% of the emissions the world produces today.

For many industries—especially heavy emitters like cement, steel, and oil refining—carbon capture is one of the few practical solutions to reduce emissions. These sectors usually have few choices for using renewable energy. They need solutions that fit into their current infrastructure.

The International Energy Agency (IEA) states that to stay on track for net-zero emissions by 2050, the world will need to capture over 1.2 billion tonnes of CO₂ per year by 2030. Today, only about 50 million tonnes are captured annually.

Facilities like Svante’s gigafactory are crucial to scaling up the supply chain and meeting this growing need.

In the United States, the Inflation Reduction Act has also increased interest in carbon capture. The law boosts the value of the 45Q tax credit to $85 per tonne of CO₂ captured and stored. This financial support has made projects more attractive to investors and energy companies.

Building a Carbon Capture Economy

The launch of Svante’s gigafactory is more than a milestone for the company—it signals a shift in how carbon capture solutions can be delivered. Svante focuses on mass production, modular systems, and global partnerships. This approach aims to make carbon capture cheaper, faster, and more scalable.

CEO Claude Letourneau remarked:

“We’re also proud to launch this transformative manufacturing facility in Canada, which allows us to bring the supply chain to our shores and bring carbon management solutions closer to the needs of emitting industries in North America.”

Also, Svante’s method helps create a carbon market. Here, captured emissions become tradable carbon credits. As carbon pricing rises, expected to exceed $50 per tonne in some markets by 2026, industries may invest more in carbon removal for the long term.

The Redwood facility’s success could lead to new ways to use carbon. Captured CO₂ might be turned into fuels, building materials, or other products. This circular economy model can help industries not only reduce their footprint but also find new revenue streams.

Laying the Foundation for a Cleaner Future

Svante Technologies’ new gigafactory marks a major development in the carbon capture industry. As countries race to meet climate goals, scalable solutions like Svante’s are becoming essential. The Burnaby plant will focus on innovation, teamwork, and quick production. It will be vital in cutting industrial emissions.

By combining advanced materials with modern manufacturing, Svante is helping to make carbon capture more practical and affordable. Its efforts contribute to a growing movement to reduce global emissions and move toward a cleaner, more sustainable economy.

• READ MORE: Carbfix Secures First EU Permit for Onshore Carbon Capture and Storage

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Microsoft has made a significant move for its climate goals. It signed a deal with Rubicon Carbon to buy 18 million tonnes of carbon removal credits. This will happen over the next 15 to 20 years. These carbon credits will come from Afforestation, Reforestation, and Revegetation (ARR) projects around the world.

The agreement is one of the largest of its kind by a single company and shows how big corporations can help scale climate solutions. Microsoft has entered into many similar carbon removal deals starting early this year. 

Rubicon Carbon, a leading carbon credit management firm backed by TPG Rise Climate, will manage the projects and ensure they meet high scientific standards. With this deal, Microsoft is funding climate efforts that may not have received investment otherwise.

Tom Montag, CEO of Rubicon Carbon, emphasized the importance of the deal, saying:

“Addressing climate change requires more than good intentions—it requires capital deployment at scale. This collaboration serves as a blueprint for how the financial sector can meet the urgency of the moment while also generating strong financial returns.”

Why Carbon Removal Matters

Carbon removal is the process of taking carbon dioxide (CO₂) out of the atmosphere and storing it in natural or engineered ways. Reducing emissions is important, but scientists say we also need carbon removal to reach global climate goals.

Nature-based solutions like planting trees are some of the most affordable and scalable options available today.

According to Microsoft, carbon removal plays a key role in their goal to be carbon negative by 2030. That means removing more CO₂ than the company emits. To reach this goal, Microsoft has committed to using a blend of natural and technological solutions.

This deal focuses on ARR projects—planting trees and restoring vegetation to capture carbon from the air. These projects often get ignored because of low funding. However, Microsoft’s long-term purchase helps make sure they are built and cared for.

The tech giant has been the top buyer of carbon removal credits, purchasing 5 million tonnes in 2024 as seen below.

• READ MORE: Microsoft Leads as Carbon Removal Credits Hit 8 Million Tonnes in 2024

Setting a New Standard for Carbon Markets

Each transaction under the agreement is a long-term “offtake.” That means Microsoft promises to buy credits in the future, giving developers financial certainty now. These types of deals are common in energy markets but are still new in the carbon market.

Microsoft and Rubicon also worked together to create a new evaluation framework for carbon credit quality. It includes Microsoft’s science-based standards and Rubicon’s existing due diligence tools. The credits must meet strict rules for impact, durability, and transparency.

Rubicon’s science team will use satellite data and remote sensing tools to track and verify carbon removal over time. This approach builds confidence in a market that has faced criticism for low-quality or unverifiable carbon credits in the past.

Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft, noted:

“We believe that project finance needs to be central to the voluntary carbon market. This deal signals the long-term demand for carbon removal necessary to mobilize infrastructure-grade investment and world-class execution.”

Fueling a Maturing Carbon Market

The voluntary carbon market—where companies buy carbon credits to meet sustainability goals—is growing fast. According to McKinsey & Company, global carbon credit demand could reach 1.5 to 2 billion tonnes per year by 2030, up from under 500 million in 2023. Yet, concerns about credit quality have held back investment.

Deals like Microsoft’s help build trust in the market by sending clear signals: there is real, long-term demand for high-quality removal. This helps project developers get loans, attract private funds, and plan bigger projects.

Nature-based credits are also more affordable than high-tech options like direct air capture (DAC), which can cost over $100 per tonne. In contrast, ARR credits often cost between $5 and $15 per tonne. You can find carbon prices for different types of credits on our page here.

Microsoft’s commitment to long-duration contracts gives these projects a better chance to succeed. It helps diversify removal technologies in the market. This is key for increasing global carbon removal capacity. The market has seen significant growth since 2020, as shown below. 

A Growing List of Corporate Climate Leaders

Microsoft is not alone in investing in carbon removal. Other major companies like Shopify, Stripe, and Alphabet (Google) have made similar commitments. They are working together to create the early market for permanent carbon removal. This can happen through nature or new technologies.

But Microsoft stands out for the scale and structure of its deals. Besides the 18-million-tonne deal with Rubicon, Microsoft has invested in carbon removal projects. These include DAC facilities and bioenergy with carbon capture and storage (BECCS).

The company’s 2023 sustainability report showed it contracted 1.4 million tonnes of carbon removal. About 40% of this comes from engineered sources. These investments are part of a bigger climate plan. This plan aims to cut Scope 1, 2, and 3 emissions in operations, the supply chain, and products.

The Road Ahead: Scaling Climate Solutions Through Partnership

Rubicon Carbon launched in 2022 with the goal of scaling high-quality carbon credit projects. Supported by TPG Rise Climate, it blends finance and climate science to help companies track their carbon footprints. The Microsoft partnership is its largest and most ambitious deal to date.

Jim Coulter, Founding Partner of TPG and Managing Partner at TPG Rise Climate, noted that this deal is not just about selling the credits, but also about reshaping how they fund climate action. 

The new evaluation framework aims to show how carbon markets can grow into reliable and scalable systems. Both parties hope to lead by example. This includes transparency, long-term planning, and science-driven impact assessments.

Looking forward, the success of this deal could encourage more companies to enter similar agreements. It might also create better financing tools for carbon project developers. This could strengthen standards in the voluntary carbon market.

Microsoft’s carbon credit agreement with Rubicon Carbon shows how corporate climate commitments can translate into meaningful global impact. By locking in 15- to 20-year purchases, the tech giant is helping fund carbon removal projects that can last decades.

The blend of business innovation, environmental science, and financial strategy sets a new path forward. As other companies watch this space, one thing is clear: carbon removal is becoming a core part of the climate solution, and Microsoft is helping to lead the way.

• READ MORE: Microsoft’s $800M Carbon Removal Deal Sets Record in Climate Fight

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The UK government has rolled out new plans to strengthen voluntary carbon and nature markets. These markets help businesses reduce emissions. They do this by funding eco-friendly projects. Examples include tree planting, electric vehicles, and forest protection.

The government wants to boost these markets. This will bring in private funding, boost climate efforts, and create new revenue for British businesses. Landowners and farmers will benefit the most.

According to the Department for Energy Security and Net Zero, the UK’s total greenhouse gas emissions in 2024 were around 371 million tonnes of CO2 equivalent. That’s 4% lower than in 2023, when emissions were 385 million tonnes.

Compared to 1990 levels, emissions in 2024 dropped by 54%. Carbon dioxide was the biggest contributor, making up about 78% of the total emissions.

A Global Role for the UK in Green Finance

BeZero Carbon says that the UK has long been a pioneer in carbon markets. Back in 2002, it launched the first national greenhouse gas trading system.

Internationally, it has helped shape carbon rules under the Paris Agreement, including at COP29. Recent data reveals that UK companies are the top users of voluntary carbon credits in the G7. They lead in both total volume and GDP comparison.

Turning Potential Into Progress

Currently, carbon and nature markets aren’t reaching their full potential. Many businesses are unsure how to use carbon credits effectively, and poor practices in the market have raised doubts. To address this, the government is creating a global framework. This will set clear standards for what makes a carbon or nature credit effective.

The new guidance will:

• Define high-quality carbon credits

• Ensure projects deliver real environmental benefits

• Encourage companies to fully disclose how credits are used in sustainability reports

These steps aim to build confidence and help businesses invest in high-impact climate solutions. With the right conditions, the carbon market could grow to $250 billion and nature markets to $69 billion by 2050.

These new plans aim to make the UK a global leader in green finance. By creating a strong and trusted carbon market, the UK can attract more private investment, support climate goals, and help businesses shift to clean energy.

Taking climate action also brings major business benefits. Since July, the UK’s clean energy sector has drawn £43.7 billion in private investment.

According to the Confederation of British Industry (CBI), the net-zero economy grew three times faster than the rest of the UK economy last year, with over 10% more jobs created in the sector.

• READ MORE: UK’s New Integrity Rules Set Gold Standard in Carbon Credits and Green Finance 

Carbon Credits in the UK

The Department for Environment, Food & Rural Affairs’ Woodland and Peatland Carbon Codes support local nature-based projects. These efforts have expanded, creating a solid foundation for growth. The government is also pushing engineered carbon removals through contracts for carbon capture and storage (CCS) technologies.

Climate Minister Kerry McCarthy said,

“Building up trust in carbon and nature markets is crucial to their success in driving meaningful climate action and real, lasting change for the environment. 

The UK is determined to spearhead global efforts to raise integrity in these markets so they can channel the finance needed to tackle the climate crisis and speed up the global clean energy transition.

These principles will cement the UK as the global hub for green finance and carbon markets. This is an opportunity to deliver on the climate crisis and drive investment and growth in the UK as part of our Plan for Change.”

UK’s Carbon Market Strategy for 2035

A recent report titled “Making the UK the carbon markets capital of the world” from BeZero Carbon outlines what the UK could potentially achieve by 2035 if it leads in carbon markets:

• Create 135,000 skilled jobs

• Add £1 billion to tax revenue

• Meet domestic carbon removal targets (13 million tonnes from engineered sources and 5 million tonnes from nature-based projects)

• Attract £10 billion per year in private climate finance for international projects

To make this vision real, the UK must grow demand. The plan expects that by 2035, all major UK businesses will offset their remaining emissions. This includes both current and future emissions, using high-quality carbon credits. These would include nature-based and engineered solutions, sourced both from the UK and abroad.

What’s Needed to Get There?

To support this growth, the government should:

• Integrate international and nature-based carbon removals into the UK Emissions Trading Scheme

• Promote alignment with trusted standards like the Voluntary Carbon Markets Integrity Initiative (VCMI)

• Use independent ratings to ensure credit quality

• Develop smart regulations that encourage, not block, market expansion

The report explains that carbon credit markets are more reliable now than five years ago. New monitoring and verification technologies reduce the risk of credits failing. These tools are backed by science and data. The COP29 Article 6 framework also helps prevent double-counting between countries and businesses.

The UK can lead in climate investment. It can support innovation and set clear rules. Carbon and nature markets can help cut emissions. They can also boost the economy and enhance the UK’s global role in green finance with the right efforts.

When the government, businesses, and communities team up, the UK can create a strong carbon market. This will create jobs, boost the economy, and support a greener future for generations to come.

• READ MORE: UK Invests £54M in 15 Projects Developing Carbon Removal Technologies

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The maritime industry is entering a period of major change as global efforts intensify to cut greenhouse gas (GHG) emissions. The International Energy Agency (IEA) has highlighted the need for clean energy solutions—especially green hydrogen and ammonia—to help shipping cut emissions and reach climate goals.

Ships now emit about 3% of global greenhouse gases (GHG). So, there’s growing pressure to decarbonize fast. The IEA recently stated that we need urgent improvements in storage, safety rules, and policy support. These changes are essential for making these fuels viable for widespread use.

The industry’s goal is to reach zero emissions by 2050. However, the road to decarbonization is complex and demands progress in technology, safety, and policy. This is where green hydrogen and ammonia come in.

The Promise of Green Hydrogen and Ammonia

Green hydrogen is made using renewable energy, like wind or solar, to split water into hydrogen and oxygen. Ammonia, which can be made from green hydrogen, is another low-carbon fuel option.

Both fuels provide a cleaner option than fossil fuels. This is especially true for long-distance shipping, where battery-powered ships aren’t practical yet. These fuels are essential to meeting the International Maritime Organization’s (IMO) climate targets.

The IMO aims to reduce shipping’s total annual emissions by at least 50% by 2050 compared to 2008 levels, and to peak emissions as soon as possible. Achieving these targets will require the wide-scale adoption of alternative fuels.

The IEA highlights that green hydrogen and ammonia can support these goals. However, industry players must tackle several key challenges:

• Storage Challenges: Hydrogen is difficult to store due to its low energy density. It needs high-pressure tanks or must be cooled to cryogenic temperatures. Research is focused on safer and smaller storage methods. This includes metal hydride systems and compressed gas solutions.

• Safety Concerns: Hydrogen is highly flammable, while ammonia is toxic. To avoid risks, ships need new safety systems, and crew members must receive updated training. The development of international safety standards will help guide proper handling and storage.

• Cost Barriers: Green hydrogen is currently 2-3 times more expensive than traditional marine fuels. Ammonia is also costly to produce at scale. According to BloombergNEF, costs could drop by 2030 with scaling and technology advances. Reducing these costs will require financial support from governments and private investors.

Bloomberg further estimates that clean ammonia could represent 13% of global ammonia supply by 2030.

DNV, a global maritime classification society, says ammonia and hydrogen could be 60% of shipping fuel by 2050. This depends on policies that support their growth. Yet today, they account for less than 0.1% of total fuel use at sea.

Both clean fuels’ costs would go down by 2050, per IRENA’s projections.

 

 

 

 

 

 

 

 

 

 

 

• RELATED: Shipping Toward Net Zero Needs $1 Trillion: What’s Inside the IMO’s New Framework

Boosting Maritime Decarbonization Through Policy

Policy support is critical to drive the shift toward cleaner fuels in shipping. Experts and industry groups are calling on governments and international regulators to create favorable conditions for investment in green hydrogen and ammonia.

Proposed policy measures include:

1. Clean Fuel Subsidies. Direct incentives can help shipowners adopt low-emission technologies and offset higher fuel costs.

2. R&D Grants. Public funding can support research into fuel storage, fuel cells, bunkering infrastructure, and vessel designs optimized for alternative fuels.

3. Carbon Pricing. Implementing a carbon tax or emissions trading system in the maritime sector can make green fuels more competitive.

4. International Standards. Harmonized regulations across countries can prevent market fragmentation and ensure global progress.

Some countries are already taking steps. Norway has introduced zero-emission requirements for cruise ships in its fjords by 2026. The EU has included shipping in its Emissions Trading System (ETS) starting in 2024, requiring ships to pay for carbon pollution. The bloc has also launched the “FuelEU Maritime” initiative to promote green fuel adoption.

The IEA and IMO are also working with ports, shipbuilders, and fuel producers to design a shared roadmap for green fuel adoption. In addition to cargo vessels, ferries and cruise ships are being looked at as early candidates for green fuel use.

GHG Emissions and the Urgency to Act

The shipping industry emits over 1 billion tonnes of CO2 annually. Without action, emissions could rise by 50% to 250% by 2050, according to IMO projections. The IEC stresses that if these emissions are not reduced, they can hinder global efforts to limit warming to 1.5°C above pre-industrial levels.

To stay on track, the shipping industry must embrace low-carbon technologies and provide clear emissions reports. Many digital tools are being created to track emissions in real time. This helps companies stay accountable and make smart choices.

Some shipping companies have already begun testing hydrogen and ammonia-powered vessels. NYK Line and Maersk are testing ammonia-fueled ships. Others are looking into hybrid vessels that mix green fuels and batteries.

The Poseidon Principles, signed by over 30 global banks, require shipping lenders to align their portfolios with climate goals. This initiative puts additional pressure on companies to invest in cleaner ships or risk losing access to finance.

Trends Shaping the Clean Fuel Market

The market for green fuels is expanding rapidly, driven by both regulation and investor interest. IEA forecasts say the global hydrogen demand could reach over 6 Mtpa by 2030.

By 2050, the total demand for green hydrogen will reach 46 million tonnes, according to IRENA. About 74% of this will be used to produce ammonia, 16% for making methanol, and the remaining 10% will be used directly as hydrogen.

Ammonia demand is also expected to rise, especially in sectors like shipping and power generation. It can grow at an annual rate of 70% through 2030.

Key developments include:

• EU Green Deal Initiatives. New climate laws are allocating billions of euros to fund clean energy, including maritime fuel infrastructure.

• Private Investments. Companies such as BP, Shell, and TotalEnergies are investing in hydrogen production and supply chains. Maersk, the second-largest shipping company in the world, is investing in vessels powered by methanol and hydrogen. Other firms, like NYK Line and MOL from Japan, are testing ammonia-powered ships.

• Green Corridors. More than 20 “green shipping corridors” are being planned worldwide. These include routes between Asia and Europe, and across the Atlantic. These corridors will enable ships to refuel with green fuels and test low-emission technologies.

These initiatives show progress. But to fully implement them, we need stronger partnerships. This includes working with governments, industries, and environmental groups.

In January 2024, the Global Maritime Forum announced that over 200 companies had joined efforts to decarbonize shipping, focusing on scalable fuel alternatives and supportive regulations.

Navigating Toward Zero Emissions

Decarbonizing the maritime sector is no longer optional. It’s a needed change due to environmental issues, investor demands, and new rules. The transition needs big investments and teamwork. But it also offers chances for new ideas and long-term savings.

The push for green hydrogen and ammonia is helping to reshape the industry’s future. These fuels offer a path to meet zero-emission targets while supporting cleaner global trade. With ongoing backing from governments, industry players, and the public, the move for maritime decarbonization is speeding up.

• READ MORE: IEA Predicts 90% Drop in Shipping Emissions by 2050. Can Maersk’s Bio-Methanol Deal be a Game-Changer?

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