Climeworks announces another collaboration on long-term CO2 storage. The multinational investment bank and financial services company founded in Switzerland UBS signed a 10-year agreement with Climeworks for the removal of carbon dioxide from the air via direct air capture.
UBS is the second client in the financial sector that Climeworks wins. Back in February 2022, the company announced that Rothesay Life – one of the UK’s largest insurers, managing more than £60 billion, wants to offset its emissions using Climeworks’ solution.
Relevant: Climeworks Wins A New Client – One Of UK’s Largest Insurers
UBS is the latest and largest financial services company to commit to the Swiss carbon removal provider, following earlier commitments from Stripe, Klarna, Square Inc., LGT and Verdane.
In addition, UBS also struck a partnership with Swiss zero-emissions concrete provider neustark which removes CO2 from the atmosphere by storing it in concrete.
The collaboration with the two companies is needed by UBS to reduce its own carbon footprint and support the development of scalable solutions that the world needs to achieve net-zero emissions.
“We are delighted to enter this long-term agreement with UBS. In the past months, the number of multi-year carbon removal agreements has increased rapidly. Such long-term commitments are central to our growth planning and enable us to increase the speed of our scale-up,” said Christoph Gebald, co-CEO and co-founder of Climeworks.
Relevant: Climeworks Starts Construction Of Its Second Direct Air Capture Plant
Long-term agreements like this one are critical for the direct air capture company to get the capital it needs to accelerate the deployment of its next wave of carbon removal plants.
So far it operates Orca – a small-scale DAC system in Iceland that removes CO2 from the air and stores it under the Icelandic bedrock, by turning the CO2 into a rock enabling permanent sequestration.
It also announced in June it started construction of its latest large-scale direct air capture and storage facility called the Mammoth plant. The facility is expected to capture 36,000 tons of CO2 per year when fully operational in 18 to 24 months and then bury them underground once again by using Carbfix’s technology.
