PYREG will launch its service, PYREG Climate Finance Solution (PCFS), at the end of 2023 with the mission to permanently remove over four million metric tons of CO2 by mid-century.
Kita and PYREG will partner on structuring a carbon insurance product to underpin the scheme, protecting offtake agreements from the risk of under-delivery of projected CO2 credits.
Kita’s Carbon Purchase Protection Cover will be implemented as part of the PCFS facility’s risk mitigation framework. Providing an extra layer of due diligence and quality evaluation, Kita’s insurance offering has the potential to attract substantial global capital to support PYREG’s innovative solution, the company said in a press release.
PCFS facilitates the sustainable removal of carbon on a large scale by producing biochar from agricultural, forestry, and municipal waste streams.
By pre-purchasing certified biochar carbon removal, PYREG machines are financed for agricultural businesses. This approach makes PYREG the pioneer in implementing a carbon leasing scheme, allowing agricultural businesses to generate revenue from the Voluntary Carbon Market. This creates a closed-loop system for customers, enabling farmers to cut waste disposal and fertilizer expenses while enhancing soil quality.
PYREG’s carbonization technology additionally generates renewable heat, which can be supplied to local heating networks as green heat or utilized to produce renewable electricity on-site.
“With our PCFS project, together with Kita, we have significantly reduced the financing risk for BCR projects for customers and laid the foundations to dramatically increase the uptake of BCR technology,” said Jörg zu Dohna, CEO at PYREG. “Now the doors are wide open for CDR offtakers and PYREG customers to optimally and rapidly utilize annual biomass residue potential regionally and contribute to achieving global climate targets by 2050.”