In a landmark partnership aimed at combating climate change, leading companies Stripe, Shopify, and H&M Group have collectively invested $7 million in a dozen innovative carbon removal startups. Spearheaded by Frontier, a public benefit company affiliated with Stripe, this groundbreaking initiative marks a significant step towards accelerating the development of carbon removal technologies and fostering sustainable practices.
Unveiling the Carbon Removal Initiative:
Frontier, established in April 2022, is a brainchild of Stripe dedicated to advancing carbon removal technologies and ensuring a thriving future for this nascent industry. With Stripe, Shopify, and H&M Group as active member companies, Frontier has taken a pivotal role in facilitating this visionary carbon removal initiative.
The Beneficiaries:
The $7 million investment has been allocated to support 12 pioneering companies dedicated to removing carbon dioxide from the environment. These startups encompass a diverse range of techniques for carbon removal, each offering innovative approaches to addressing this pressing global challenge. The selected companies include Airhive, Alkali Earth, Banyu Carbon, Carbon Atlantis, CarbonBlue, CarbonRun, EDAC Labs, Holocene, Mati, Planetary Technologies, Spiritus Technologies, and Vaulted Deep.
Varied Approaches to Carbon Removal:
The methodologies employed by these startups for carbon removal are as diverse as they are innovative. For instance, Alkali Earth utilizes alkaline byproducts from industrial processes to create carbon sinks on road gravel. CarbonBlue employs calcium to mineralize and extract dissolved carbon dioxide from freshwater or ocean water. Mati applies silicate rock powder to agricultural fields, where it reacts with water and carbon dioxide to produce dissolved carbon. These are just a few examples of the ingenious techniques being explored.
Frontier’s Facilitation of Carbon Removal:
Frontier acts as the bridge between member companies and carbon removal startups, facilitating carbon removal purchases through various mechanisms. These include pre-purchase agreements and offtake agreements, each tailored to cater to different stages of a startup’s growth.
- Pre-purchase agreements: These involve smaller upfront purchases that support early-stage carbon removal companies. The $7 million investment represents such pre-purchase agreements, with carbon removal ranging from 58 tons to 1,666 tons, depending on the startup’s capacity.
- Offtake agreements: Designed for later-stage companies, these significantly larger purchases compensate startups based on the actual removal and sequestration of carbon.
Frontier’s Vision for Gigaton-Scale Removal:
Frontier’s long-term vision encompasses achieving gigaton-scale carbon removal. While larger offtake agreements with established carbon removal companies will form the bulk of Frontier’s funding, the pre-purchase program remains essential to support emerging ventures. This holistic approach aims to ensure a robust portfolio of carbon removal technologies capable of addressing global emissions at an unprecedented scale.
A Collaborative Effort for a Common Cause:
The partnership among Stripe, Shopify, and H&M Group highlights the collective commitment to combating climate change. These industry leaders recognize that carbon removal technologies must work in tandem with immediate emissions reductions and the phasing out of fossil fuels to achieve climate goals. The United Nations Intergovernmental Panel on Climate Change emphasizes the pivotal role of carbon dioxide removal in limiting global warming, reinforcing the significance of initiatives like Frontier’s.
Encouraging Signs of Progress:
Frontier’s endeavors have yielded promising results, with an increase in both the quantity and quality of applications from carbon removal startups. This growing interest and diversity within the field signify maturation and evolution. Frontier is witnessing a broader geographical spectrum of innovative approaches to carbon removal, providing renewed hope for the future.
A Vital Tool for Climate Action:
In closing, the pioneering efforts of Stripe, Shopify, H&M Group, and Frontier underscore the vital role of carbon removal in our battle against climate change. While these investments represent modest contributions compared to the scale of emissions, they serve as stepping stones towards a more sustainable future. The journey towards gigaton-scale carbon removal is ongoing, with each innovative startup and committed partner playing a pivotal role in safeguarding our planet for future generations.0
