NextGen CDR Facility (NextGen), a joint venture between Swiss carbon finance consultancy South Pole and Japanese conglomerate Mitsubishi Corporation, recently announced the advance purchase of 193,125 tonnes (t) of carbon dioxide removals (CDRs) to create the world’s largest diversified portfolio of CDR projects, offering more than 1,000 years of CO₂ storage once delivered. The purchase represents 25% of all bought CDRs to date, according to industry data source CDR.FYI.
NextGen – backed by founding buyers Boston Consulting Group, LGT, Mitsui O.S.K. Lines, Swiss Re and UBS – aims to make permanent CDRs accessible for corporate buyers with an average target price of $200/t, enabling risk diversification through a portfolio approach. The portfolio will include an array of carbon removal technologies including biomass carbon removal and storage, direct air capture and storage (DACS), enhanced weathering, high-temperature biochar and product mineralisation.
All the projects will be certified and verified under standards endorsed by the non-profit International Carbon Reduction and Offset Alliance to ensure an independent third-party assurance that the projects are of high environmental integrity and benefit local communities.
The advance purchase will include CDRs from the world’s largest DACS project, being developed by 1PointFive in Texas, which is expected to remove and permanently store up to 500,000t of carbon dioxide per year once fully operational. There will also be CDRs from the world’s largest tech carbon removal project, the Summit Carbon Solutions $5.1bn biomass carbon removal and storage project under development in the Midwest region of the US, which will remove more than nine million tonnes annually via the capture, transportation and permanent storage of biogenic carbon removals. In addition, the portfolio will acquire carbon removal credits from climate tech company Carbo Culture’s inaugural high-technology biochar project (C1) in Finland, with the first series of commercial facilities due to produce biochar to remove and durably store 2.5 million tonnes of CDRs by 2030.
“NextGen’s ambition to scale the market has taken a major step forward following these initial CDR purchases and puts us on a clear pathway to realise our target of 1m durably stored tonnes of CO2 by 2025,” said Philip Moss, chairman of NextGen and global director of tech carbon removals at South Pole, in a press statement. “Not only will these advance purchases establish a quality standard by ensuring independent certification of technological carbon removals, these commitments from our buyers will unlock financing for many emerging CDR projects and technologies that now have a clear route-to-market.”