The agreement marks a significant step towards the development of the world’s largest and most enduring biochar carbon removal project pool.
Biochar, a product with the ability to sequester carbon for thousands of years when produced under optimal conditions, holds immense promise for climate mitigation and adaptation. PYREG’s advanced ultra-low emission carbonisation technology not only facilitates biochar production but also generates renewable heat. This renewable energy source can be seamlessly integrated into local heating networks or used for electricity generation, potentially replacing conventional fossil fuel energy and promoting self-sufficiency.
The collaborative effort between PYREG and Kita comes with the impending launch of PYREG’s revolutionary service, the PYREG Climate Finance Solution (PCFS), scheduled for Q4 2023. PCFS aims to permanently remove over four million tonnes of carbon dioxide by 2050.
At the core of PCFS is the facilitation of durable carbon removal on a large scale through biochar production from agricultural, forestry, and municipal waste streams. Corporate entities can leverage this solution to meet their climate targets while simultaneously accelerating biochar production. Through a pre-purchase arrangement of certified Biochar Removal Credits (BCRs), PYREG machines can be financially supported for use in agricultural businesses.
An innovative aspect of PCFS is the introduction of a carbon leasing scheme for PYREG’s carbonisation machines, marking a significant stride in sustainable business practices. This approach enables agricultural enterprises to access revenues from the Verified Carbon Market (VCM), creating a closed-loop system. Farmers, in turn, benefit by reducing waste disposal costs, minimizing expenditure on fertilizers, and enhancing soil quality.
The partnership also signifies a pivotal advance in sustainable solutions for carbon removal and reinforces the potential for biochar to address multiple UN Sustainable Development Goals (SDGs). As PYREG prepares to roll out PCFS, the partnership aims to redefine the landscape of carbon insurance and contribute significantly to global efforts in combating climate change.
Speaking about the partnership,Jörg zu Dohna, CEO, PYREG, commented, saying: “With our PCFS project, together with Kita, we have significantly reduced the financing risk for BCR projects for customers and laid the foundations to dramatically increase the uptake of BCR technology.”
He continued: “Now the doors are wide open for CDR offtakers and PYREG customers to optimally and rapidly utilise annual biomass residue potential regionally and contribute to achieving global climate targets by 2050. Through PCFS, we enable PYREG customers to benefit from our technology at a fraction of the purchase price.”
“Kita is committed to developing carbon insurance solutions that can underpin the growth of the most ambitious and impactful carbon removal projects,” said Tom Merriman, Co-Founder and Chief Product Officer, Kita.
He added: “By reducing the risks involved in under-delivery of carbon credits, our insurance can support PYREG’s innovative biochar machinery leasing programme”
Author: Joanna England
