Frontier has just announced it has signed its first offtake agreements with Charm Industrial for a total of $53 million.
Under the offtake agreements, Charm Industrial will remove 112,000 metric tons of carbon dioxide, which is to be stored permanently underground starting next year and until the end of the decade.
The current price per ton reflects not just the act of removing CO2 from the atmosphere, but also the measuring, reporting, and verifying (MRV) that is involved in the safe and permanent storage process.
It is estimated that Frontier buyers will pay a price per ton of CO2 removal that will go down by a minimum of 37% over the agreement period (2024-2030) or as much as 75% over the same period, according to estimates by Charm based on the company’s scaling plans.
Charm Industrial specializes in pyrolysis, which is the process of collecting waste biomass left over after forest fires or from agricultural harvests and burning it at very high temperatures in an environment with no oxygen.
The process results in the production of bio-oil that is injected deep underground in wells, where it can sink deeper still and solidify, thus leading to the permanent storage of CO2, and this practice is what is known as biomass carbon removal and storage or BiCRS.
The company was among the first to successfully demonstrate its carbon removal solution when it first started out in 2021 and has since removed 6,160 tons of CO2 emissions.
Charm’s solution has great potential to grow and start removing carbon dioxide at scale in the next few years, as it utilizes the natural ability of plants to hold the greenhouse gas (GHG).
In fact, according to some estimates, gigaton scale may very well be achieved by 2050 with plenty of waste biomass being available to do so.
This set of offtake agreements marks the first of several that are said to be announced by Frontier in 2023, with BiCRS being just one of many carbon removal approaches in the organization’s diverse portfolio.