Climeworks – a leading company in the direct air capture space and BCG – one of the world’s largest management consulting firms, made a historic carbon dioxide removal deal. The two companies signed an unprecedented 15-year agreement to work together on scaling high-quality carbon removal. BCG will purchase 80,000 metric tons of direct air capture removals which marks Climeworks’ largest off-take agreement from a corporate buyer to date.
The duration of the collaboration – 15 years is needed as the direct air capture industry which is still in its early days of deployment of the technology is moving towards financing its billion-dollar assets via pre-purchase agreements. The industry is transitioning from equity financing its future facilities towards securing buyers for the tons of CO2 it is going to permanently remove from the atmosphere.
The long duration of the agreement also underlines the crucial role of long-term commitments to fast-track the capacity of direct air capture removals. As an early mover in the industry, Climeworks possesses the expertise and capacity to scale direct air capture to the million tons of annual removal at the time frame needed for the world to achieve its net zero goals.
BCG and Climeworks first signed a 10-year contract in 2021 for BCG to remove part of its unavoidable emissions with permanent carbon removals. BCG is also willing to support its clients in reducing their emissions and spread education about direct air capture.
“Without carbon removal, net-zero is out of reach. This is true for BCG and across industries at large. It’s imperative that we start scaling carbon removal today, in particular high-quality solutions that are verifiable, additional, and permanent, to be able to meet the growing demand in the coming decades. Climeworks continues to be a driving force in carbon removal and is a valued partner on the path to BCG’s net zero target”, said David Webb, Chief Sustainability Officer of BCG.
“It is of course very important to have partners like you to help us bring the awareness, bring the education out, and also bring out why this is relevant, why you need to act today to achieve your 2030, 2040, 2050 targets. This is what I think our partnership is based on,” commented Cliemworks co-founder and co-CEO Christoph Gebald at COP28 in Dubai, during a conversation with Cornelius Pieper, Managing Director and Senior Partner at BCG and BCG’s Global Chair Rich Lesser.
BCG’s climate goal is to achieve net zero climate impact by 2030 and net negative climate impact thereafter. Climeworks is an important partner towards achieving this goal, according to Mr Lesser.
Climeworks also announced another development this week. It is expanding its board of directors with two industry experts – Syrie Crouch, a carbon management professional with 30 years of experience at Shell leading its carbon capture and storage initiatives, and C-level chemical industry executive Maurits van Tol with a proven track record in innovation in sustainable technology.
“Syrie Crouch is an industry institution when it comes to the transition to net zero. We will greatly not only benefit from her expertise in subject matter from carbon capture and storage but also from her experience having dealt with multiple government and regulatory bodies around the world to deliver those energy transition projects,” said Christoph Gebald.
“Maurits van Tol’s experience as a senior executive in the chemical industry will be of enormous value when Climeworks tackles the next steps in driving innovation and building up global supply chains in materials for direct air capture… We share the same firm belief in the vital role of technology to provide solutions for climate change and will rely on Maurits drive towards the commercialization of cleantech,” commented Co-CEO and Co-founder Jan Wurzbacher.