The German climate-tech enterprise Novocarbo has successfully secured €25 million ($27 million) in growth capital to build a comprehensive infrastructure network across Europe for its carbon-neutral solutions. In collaboration with a French investment partner, Novocarbo is set to establish several Carbon Removal Parks throughout Europe, aimed at enhancing decarbonization efforts.
Support from SWEN Capital Partners
Supported by SWEN Capital Partners, a key player in European infrastructure, Novocarbo's goal is to eliminate 1 million tonnes of CO2 by the year 2030. This investment is among the most substantial in Europe's Carbon Dioxide Removal (CDR) sector in recent times.
Thanks to the investment from SWEN Capital Partners’ SWEN Impact Fund for Transition 2, Novocarbo is poised for the continental rollout of its Carbon Removal Parks.
The Concept of Carbon Removal Parks
At the core of Novocarbo's operations are the Carbon Removal Parks, designed as a multi-faceted approach to climate change:
- Capturing CO2 from the air,
- Generating sustainable energy, and
- Producing biochar, an eco-friendly carbon compound.
These parks utilize Biochar Carbon Removal (BCR) technology to create climate-friendly heat, transforming biomass into a clean energy source. This allows businesses and local governments to reduce their carbon footprint.
Understanding BCR
What exactly is BCR? BCR represents a technique for removing carbon, harnessing the carbon absorbed by biomass through photosynthesis to cleanse the atmosphere.
In this process, organic waste is subjected to pyrolysis, a method where materials are decomposed at high temperatures in an oxygen-free environment. This breaks down organic matter into gas and leaves behind biochar, a stable form of carbon that can be stored with ease. The procedure yields both biochar and renewable energy.
Novocarbo's Impact and Future Plans
Novocarbo's innovative parks not only facilitate CO2 extraction but also contribute to the production of green energy. Established in 2017 and based in Hamburg, the startup has already set up three Carbon Removal Parks in Germany and expanded its workforce to more than 35 people.
Germany’s Largest Carbon Removal Park, according to Novocarbo’s website, showcases the scale of their operations. The company has developed an extensive distribution network for biochar soil enhancers in Europe and has attracted notable corporate clients like Bayer and Swiss Re with its carbon projects and trading of carbon removal credits.
Recently, Novocarbo finalized three significant carbon credit deals, accounting for over 8,000 tonnes of CO2.
The fresh funding will further propel the deployment of the BCR solution, playing a crucial role in climate change mitigation. It aims for the establishment of 200 parks by 2033, significantly enhancing Europe's capabilities in CDR and sustainable heating.
With SWEN CP's backing, Novocarbo secures a powerful ally in creating meaningful zero-emission infrastructure across Europe. SWEN CP, with its focus on investments that address environmental issues, adds carbon removal technologies to its portfolio for the first time through this collaboration.
The Role of CDR and Biochar in Climate Mitigation
Although reducing greenhouse gas emissions is vital, the Intergovernmental Panel on Climate Change (IPCC) stresses the importance of CDR in counterbalancing emissions from sectors difficult to decarbonize and achieving net-zero. The recent endorsement of the EU Carbon Removal Certification Framework (CRCF) highlights the critical role of advancing CDR technologies to meet climate goals.
The biochar sector is witnessing significant investment and interest, with biochar-related transactions making up over 90% of all CDR dealings in 2023.
A Canadian biochar firm recently raised $38 million in Series B funding to boost its output. Additionally, Shell has just announced plans to purchase biochar removal credits from a company in Mexico.
Novocarbo's Vision and the Climate Challenge
Caspar von Ziegner, Novocarbo's CEO, emphasizes the crucial role of biochar removal in combating climate change, stating:
“To keep global warming within 1.5 degrees, we must fully exploit significant net-zero technologies like Biochar Carbon Removal. This technology is crucial for transitioning industries with high emissions towards a zero-emission future. The time to act is now; the climate cannot wait.”
This $27 million investment marks a significant stride towards mitigating climate change in Europe. Novocarbo’s initiative, with its focus on BCR technology, positions it at the forefront of the fight against global warming and the pursuit of a net-zero future.
CarbonUnits.com
