Carbon Capture Scotland Selects Xpansiv CBL For Sale Of Removal Credits

Carbon Capture Scotland Selects Xpansiv CBL For Sale Of Removal Credits - Carbon Herald

Xpansiv CBL has been chosen by Carbon Capture Scotland for the auction of carbon removal credits issued after a contract from the Danish Energy Agency for the delivery of 32,000 tons of removals and securing storage in Stenlille, Denmark with Gas Storage Denmark.

“We are excited to offer our biogenic carbon removal credits to market,” said Richard Nimmons, CEO, Carbon Capture Scotland. “We see significant benefits to offering our credits to market participants via Xpansiv’s primary sale facility, which will give us greater pre-trade transparency and control to carry out a more transparent, robust, and equitable sale.”

Xpansiv will utilize its global network of corporate and intermediary buyers for the primary sale of the credits, which will be issued under a Puro.earth methodology, providing an additional layer of trust at this early stage of the carbon removal market’s development.

Xpansiv and Carbon Capture Scotland leading the way

Carbon Capture Scotland will be one of the first project developers in the carbon removal industry to gain exposure to hundreds of corporates and intermediaries that are part of Xpansiv CBL, allowing for direct collaboration with buyers on due diligence and terms.

“We are excited to facilitate this important primary sale of carbon removal credits and aim to provide an effective, streamlined process to enable the best possible outcome for both buyers and sellers,” said Russell Karas, Head of Commodities, Xpansiv. “We are further pleased that the sales process leverages our neutral market position and our automated settlement and delivery process on issuance.”

The auction comes after Carbon Capture Scotland was awarded a contract for 4,650 metric tons of biogenic carbon removal annually, starting in 2026 for a seven year period. This request for quotes will cover a number of forward vintages, allowing buyers to have long-term bilateral offtake agreements. Spot delivery of this year’s vintage will be available as early as Q4.

Relevant: Denmark Provides Largest Ever Government Subsidy For Carbon Removal

Underpinning the deal are two companies that are poised to become part of the foundation of the market: the aforementioned Puro.earth, as well as carbon insurance provider Kita. The latter will be providing its risk transfer solutions and protecting both counterparties from any unintended under- or non-delivery.

“The CDR industry is reaching a new level of maturity, where multiple pieces of the puzzle are coming together and complementing each other: CO2 capture, storage, carbon credit certification, registration, and expanded distribution,” said Antti Vihavainen, Co-Founder & CEO, Puro.earth. “This is a significant step forward. Puro.earth provides rigorous methodologies that enable trust from buyers, which is key to bringing liquidity to the market.”

Read more: Xpansiv Launches Xpansiv Connect™ And Opens Its Infrastructure To The Entire Industry

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