PYREG, a German NetZero Tech company and specialist for high-tech biochar carbon removal and Kita, the global carbon insurance specialist, have established a memorandum of understanding (MOU) on the development of the world’s largest durable biochar carbon removal project pool.
Biochar is able to remove carbon from the atmosphere for thousands of years, when produced under the right conditions.
The pair explains that when used for agronomic purposes, it can potentially improve soil fertility, reduce contaminants in the soil and improve water retention, making it a versatile climate mitigation and adaptation solution.
Additionally, PYREG’s ultra-low emission carbonisation technology produces renewable heat, and the energy can be fed into local heating networks as green heat or used to generate renewable electricity at production sites.
The PYREG Climate Finance Solution (PCFS) will be launched in Q4 2023 with the mission to permanently remove over four million tonnes of carbon dioxide by 2050.
The company explains that PCFS enables durable carbon removal at scale through biochar production from agricultural, forestry and municipal waste streams. With this solution, corporates can contribute to their climate targets while simultaneously accelerating biochar production.
PYREG will be the first company to implement a carbon leasing scheme for its carbonisation machines, enabling agricultural businesses to access revenues from the VCM. By doing this, PCFS creates a closed-loop system for their customers whereby farmers can reduce their waste disposal and fertiliser spending while improving their soil quality.
Jörg zu Dohna, Chief Executive Officer, PYREG, commented, “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.
“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 and PYREG are collaborating to structure an innovative carbon insurance product to help clients with this scheme, protecting offtake agreements from the risk of under-delivery of projected carbon credits.
Kita’s Carbon Purchase Protection Cover protects financiers of forward-purchased carbon credits against under-delivery and will be implemented as part of the PCFS facility’s risk mitigation framework.
The insurance acts as a stamp of confidence for prospective clients, says the pair, enabling them to get the green light to invest in impactful CDR projects that have the potential to meet ambitious net-zero targets. By offering an additional indication of due diligence and quality assessment, the provision of Kita’s insurance can help channel significant global capital towards PYREG’s innovative solution.
Tom Merriman, Co-Founder and Chief Product Officer, Kita, added, “Kita is committed to developing carbon insurance solutions that can underpin the growth of the most ambitious and impactful carbon removal projects. By reducing the risks involved in under-delivery of carbon credits, our insurance can support PYREG’s innovative biochar machinery leasing programme.”
