Frontier, the fund launched by Stripe, Alphabet, Shopify, Meta, and McKinsey Sustainability to accelerate the development of carbon dioxide removal (CDR) technologies, has issued a Request for Proposals (RFP) for its Fall 2022 carbon removal purchase cycle.
The purchase cycle will aim to unlock the potential of future carbon removal solutions at their various stages of development. Frontier is focusing on permanent CO2 removal tech having the potential to be low-cost and high-volume in the future, even if they’re not today.
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Frontier’s screening process involves a brief pre-application to help it understand whether a proposal is likely to meet its eligibility criteria. The final date for pre-applications is September 2, 2022 by 10pm ET.
Then, it will invite only eligible projects to submit full applications. Frontier hopes this approach will minimize the time spent applying by projects that don’t meet the direction of its request for proposals.
The fund’s purchase of carbon removals will also go through two separate tracks – prepurchases and offtakes, varying by eligibility criteria, diligence process, and funding amounts.
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The prepurchases are done at early stages and are paid upfront. The track is designed to pressure-test the viability of exciting technologies. It aims to expand the number of carbon removal pathways and companies working on this problem. These are low-volume, small-dollar contracts that, if successful, can be converted into longer-term offtakes.
The offtake agreements are used to purchase future tons of carbon removal at an agreed price and date of delivery. This track is intended to accelerate the scaling of promising CDR approaches by providing year-over-year revenue visibility needed to help companies secure financing and deploy systems in the field.