Stripe, Alphabet, Shopify, Meta, and McKinsey Sustainability teamed up back in April 2022 to launch Frontier – a new fund that will perform carbon offset purchases. Frontier announced June 29th that it performed the first purchases of carbon removals from six early stage carbon reduction startups.
The six companies represent a diverse group of early-stage technologies that provide a promising carbon removal solution that could have a critical impact on the mission to mitigate climate change emissions.
Frontier is also the first customer for all of them. It will spend $2.4 million on the purchases, with another $5.4 million commitment if projects reach agreed upon technical milestones. Prices per ton of carbon removed range between $500 and $1.8K.
The goal of the fund is to give the most promising carbon removal solutions a runway to scale. Frontier has a commitment of $925 million of capital and the majority of it will go towards multi year offtake agreements.
With an offtake, Frontier pays for future carbon removal supply at the time it is delivered. However, the fund also pre-purchases a low-volume of carbon removals like those announced this week to get the companies up and running today.
“The majority of Frontier’s $925m will go on multiyear offtake agreements designed to help companies scale up their technologies. But while the field is so nascent, we need to keep up momentum on pre-purchases like these to get more companies to the starting line,” said Nan Ransohoff, a leader of Frontier.
The carbon removal startups chosen to receive the orders are AspiraDAC, Calcite-Origen, Lithos Carbon, RepAir, Travertine, and Living Carbon. Lithos, accelerating enhanced weathering approach of naturally capturing CO2, has received the largest pre-purchase order of 640 tons of carbon removed.
It is followed by the carbon removal purchase from AspiraDAC that is building a modular, solar-powered DAC system with the energy supply integrated into the modules. The Australian startup has received an order for 500 tons of CO2 removed from Frontier.