Decarbonization platform Patch announced the launch of its new solution Patch Offtake, a multi-year carbon credit pre-purchase agreement that provides businesses with the opportunity to support and scale a carbon removal portfolio.
The developers of carbon credit projects can turn these multi-year agreements into funding and secure revenue for years, expanding production capacity and delivering growth in carbon removal and storage.
The first Offtake participants include global management consulting firm Bain & Company and the walk it back collective, a global campaign that urges individuals to double down on carbon removal.
“Patch Offtake comes at the perfect time,” said Sam Israelit, Chief Sustainability Officer at Bain. “By addressing the needs of both project developers and carbon credit buyers, it paves the way to scale the critical solutions the whole world needs right now.”
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Through Offtake, the buyers have access through the end of the decade to a portfolio of innovative project developers such as CarbonCure Technologies, Mission Zero Technologies, Running Tide, and Vesta.
“Offtake enables multi-year funding with terms and buyers we would otherwise not have access to,” said Tom Green, CEO of Vesta. “Patch has taken the complexity out of forward purchase agreements, enabling us to focus our efforts on what we do best—removing carbon from the atmosphere.”
Offtake allows buyers to support project developers in demonstrating commercial viability as soon as possible and accelerating the production of CO2 removal and storage projects. Unlike other forward purchase mechanisms, Offtake does not require a minimum investment level or volume commitment from the buyers.
Using Offtake, the companies would not need to negotiate or directly manage their multi-year agreements as Patch oversees the complexity and risk through standardized contracting. The diversification of the Offtake portfolio also mitigates supply and delivery risks for buyers.
Read more: Vesta Launches Its Southampton Demonstration Site – The First Carbon Capture Beach
