INDUSTRIES

&

MARKETSCarbonremovalworldwideCHAPTER

01OverviewAnnualcarbondioxide(CO?)emissionsworldwidefrom1940to2022(inbillionmetrictons)Annualglobalemissionsofcarbondioxide1940-202240353025201510503Description:Globalcarbondioxideemissionsfromfossilfuelsandindustrywere37.12billionmetrictons(GtCO?)in2021.Emissionsareprojectedtohaverisen0.9percentin2022to37.5GtCO?-theirhighesteverlevel.Since1990,globalCO?emissionshaveincreasedbymorethan60percent.ThetwobiggestcontributorstoglobalemissionsareChinaandtheUnitedStates,whoproduced11.47and5.01GtCO?in2021,respectively.

ReadmoreNote(s):Worldwide;1940to2022;*ProjectionOriginaldatahavebeenconvertedfrommillionmetrictonsofcarbontounitsofcarbondioxidebymultiplyingby3.664.Thevalueshavebeenrounded.

ReadmoreSource(s):Expert(s)(Friedlingsteinetal.(2022));GlobalCarbonProjectAveragecarbondioxide(CO?)levelsintheatmosphereworldwidefrom1959to2022(inpartspermillion)Globalatmosphericcarbondioxideconcentration1959-20224404204003803603403203004/statistics/1091926/atmospheric-concentration-of-co2-historicAverageannualatmosphericlevelsofcarbondioxide(CO?)reachedarecordhighof418.56partspermillion(ppm)in2022,ayear-on-yearincreaseof0.5percent.Onamonthlybasis,atmosphericCO?concentrationsnormallypeakinMayandJune.

ReadmoreNote(s):Worldwide;*ObservationsstartinginDecember2022arefromasiteatMaunakeaObservatories,21milesnorthofthepriorlocationatMaunaLoaObservatory.DatafromMarch1958throughApril1974havebeenobtainedbyC.David[...]

ReadmoreSource(s):ESRL;NationalOceanicandAtmosphericAdministrationGlobalwarmingprojectionsby2100,byscenario(indegreesCelsius)Projectedtemperatureincreaseworldwide2100,byscenario3.02.72.42.52.01.51.00.50.021.81.2Policies&action2030targetsonlyPledges&targetsOptimisticscenarioCurrentstatus5Description:BasedonpoliciesandactionsinplaceasofNovember2022,theglobaltemperatureincreaseisestimatedtoreachamedianof2.7degreesCelsiusin2100.Inthebest-casescenario,whereallannouncednet-zerotargets,long-termtargets,andNationallyDeterminedContributions(NDCs)arefullyimplemented,theglobaltemperatureisstillexpectedtoriseby1.8degreesCelsius,whencomparedtothepre-industrialaverage.

ReadmoreNote(s):Worldwide;asofNovember2022Source(s):ClimateActionTrackerGlobalcarbondioxideremoval(CDR)marketsizeworldwidefrom2021to2022,withaforecastfor2031(inmillionU.S.dollars)Globalcarbonremovalmarketsize2021-20312,5002,0001,5002,083.41,000462418.12021500020222031*6Description:Theglobalcarbonremoval(CDR)marketwasvaluedat462millionU.S.dollarsin2022,ayear-over-yearincreaseofroughly10percent.TheCDRmarketisexpectedtoregisteraCAGRrateof18.2percentduringtheforecastperiodfrom2022to2031toreachavalueofmorethantwobillionU.S.dollars.ReadmoreNote(s):Worldwide;ProjectionbasedonaCAGRof18.2percentfrom2022to2031Source(s):BISResearchCHAPTER

02StatusCarbondioxideremoval(CDR)deliveriesworldwidefromJune1,2019toJune1,2023(inmetrictons)Globalcarbondioxideremovaldeliveries2019-202380,00070,00060,00050,00040,00030,00020,00010,00074,29443,56416,717919.481360Jun1,2019Jun1,2020Jun1,2021Jun1,2022Jun1,20238Description:Globalcarbondioxideremoval(CDR)deliverieshaveexperiencedsignificantgrowthinrecentyears,risingfromjust136metrictonsinJune2019toalmost75,000metrictonsinJune2023.AccordingtotheIntergovernmentalPanelonClimateChange,CDRwillbeanecessaryfortheworldtoachieveitsclimatetargets.ReadmoreNote(s):WorldwideSource(s):CDR.fyi;EnergyMonitorPercentageofsoldengineeredcarbonremoval(CDR)creditsdeliveredandundeliveredworldwideasof2023ShareofsoldCDRcreditsdeliveredandundeliveredworldwide2023Delivered3%Undelivered97%9Description:Carbondioxideremoval(CDR)technologiesarestillintheirinfancy.Assuch,justthreepercentofthe4.7millionmetrictonsofglobalengineeredcarbonremovalcreditspurchasedworldwidehadbeendeliveredasofSeptember2023.MicrosoftisaleadinginvestorinCDR,andhaspurchasedmorethanthreemillionCDRcreditsReadmoreNote(s):Worldwide;AsofSeptember2023;Figuresmaynottotal100%duetoroundingSource(s):CDR.fyiDistributionofundeliveredcreditssoldintheengineeredcarbonremoval(CDR)marketworldwideasof2023,bymethodBreakdownofundeliveredcarbonremovalcreditsworldwide2023,bymethodMacroalgae1%Other5%Biooil4%Mineralization2%DAC13%Biochar3%BECCS72%10Description:Bio-energywithcarboncaptureandstorage(BECCS)accountedforalmostthree-quartersofundeliveredcreditssoldintheglobalengineeredcarbonremoval(CDR)market.ThisisprimarilyduetoMicrosoft'spurchaseof2.7millionBECCScreditsfrom?rstedinMay2023.ReadmoreNote(s):Worldwide;AsofMay2023Source(s):BeZero;CDR.fyiEnergyrequirementsforsequesteringonebilliontonsofcarbondioxide(CO?)usingDirectAirCapture(DAC),comparedwithU.S.electricityproductionbysourcein2019(interawatt-hours)DirectAirCaptureenergyrequirements20222019U.S.ElectricityproductionbysourceDACrequirementsfor1GtCO?/yearGasCoalNuclearRenewablesHydroDACrequirementsfor1GtCO?/year11/statistics/1416958/direct-air-capture-energy-requirementsItisestimatedthatremovingonebilliontonsofcarbondioxide(GtCO?)usingDirectAirCapture(DAC)wouldrequirearound1,200terawatt-hours.Thisisroughlythree-timesmoreenergythantheentireU.S.renewablesectorgeneratedin2019.

ReadmoreNote(s):Worldwide;2022Source(s):MIT;ProtocolTotalcurrentamountofcarbondioxideremoval(CDR)worldwideasof2020(inmetrictonsofcarbondioxideperyear)Globalcarbondioxideremovalsperyear2020,bymethodCarbon

dioxide

removalin

metric

tons

per

yearConventionalCDRmethodsonlandBECCS(novelCDR)20000000001800000500000Biochar(novelCDR)OthernovelCDR2000012Description:Anestimatedtwobillionmetrictonsofcarbondioxideisremovedannuallyfromconventionalcarbondioxideremoval(CDR)methodsonland.Theseremovalsareprimarilyfromafforestation,reforestation,andmanagementofexistingforests.NovelCDRmethodscurrentlyonlycontributeatinyfraction,withsome1.8MtCO2removedfromBECCS(BioenergywithCarbonCaptureandStorage)peryear.ReadmoreNote(s):Worldwide;2020Source(s):Expert(s)(Smith,S.M.etal(2023));UniversityofOxford(SmithSchoolofEnterpriseandtheEnvironment)CHAPTER

03FinanceGlobalcarbondioxideremoval(CDR)marketworldwidein2021,withaforecastfor2031,bycarboncreditbuyer(inmillionU.S.dollars)Globalcarbonremovalmarket2021-2031,bycarboncreditbuyer2021203120018016014012010080190.4185.699.9604012.8204.920TechnologysectorFinancesectorOthers14Description:Thefinancesectorisprojectedtobetheglobalcarbondioxideremoval(CDR)market'slargestcarboncreditbuyerin2031,withavalueof190.4millionU.S.dollars.Thegrowthofthefinancesectorwillbeattributabletofactorssuchascompliance,investment,carbonoffsetting,andcorporatesocialresponsibility.ReadmoreNote(s):WorldwideSource(s):BISResearchFederalfundingforresearch,development,anddemonstrationforcarbonremovaltechnologiesintheUnitedStatesfrom2009to2022(inmillionU.S.dollars)FederalfundingforRD&DforcarbonremovaltechnologiesintheU.S.2009-202214012912010080604020090.560102009-201920202021202215Description:U.S.federalfundingforresearch,development,anddemonstration(RD&D)forcarbonremovaltechnologieshasincreasedconsiderablyinrecentyears.Between2009and2019,thegovernmentinvestedapproximately10millionU.S.dollarsforRD&Dforcarbonremovaltechnologies,butby2022thishadrisentoalmost130millionU.S.dollars.ReadmoreNote(s):UnitedStates;2009to2022Source(s):SystemsChangeLab;USHouseofRepresentativesAveragesellingpriceofcarbondioxideremovals(CDR)worldwideasof2023,bymethod(inU.S.dollarspermetrictonofCO?removal)GlobalaveragesellingpricepermetrictonofCDR2023,bymethodPricepermetrictonofCDRinU.S.dollars02004006008001,0001,2001,4001,6001,6101,6081,800ElectrochemicaloceanCO?captureOceanAlkalinityEnhancement(OAE)DirectOceanRemoval(DOC)DirectAirCapture(DAC)Biooil1,183712506EnhancedweatheringMineralization334321Macroalgae245Biochar190140BiomassremovalMicroalgae5016Description:Theaveragesellingpriceofametrictonofcarbondioxideremoval(CDR)variesgreatlybymethod.Asof2023,electrochemicaloceanCO?capturehadthehighestaverageprice,atroughly1,600U.S.dollarspermetricton.ThiswasmorethanthreetimestheaveragepriceofBio-oil.In2023,theFrontierInitiativepaidCharmIndustriesmorethan50millionU.S.dollarstocaptureroughly112,000tCO?between2024and2030throughbio-oilsequestration.

ReadmoreNote(s):Worldwide;2023Source(s):CDR.fyiEstimatedcostrangesforcarboncaptureandstorage(CSS)andcarbondioxideremoval(CDR)solutionsasof2023,byapproachortechnology(inU.S.dollarspertonofCO?)GlobalcostofCCS&CDRsolutions2023,byapproachortechnologyCostinU.S.dollarspertonofCO?Max100Min150130050200250240300350400450Carboncapture&storageDirectaircarboncapture&storageBioenergycombinedwithcarboncapture&storageAfforestation&reforestationSoilcarbonsequestration1515345100100400545345Biochar10200Enhancedweathering5017Description:Thecostofcarboncaptureandstorage(CSS)andcarbondioxideremoval(CDR)solutionsvariesbyapproachandtechnology.ItisestimatedthatCCScostsrangedbetween15and130U.S.dollarspermetrictonofcarbondioxide(tCO?),whilethecostsfordirectairCCSrangedbetween100and345U.S.dollarspertCO?.Incontrast,nature-basedsolutionssuchasafforestationandreforestationrangedbetween45and240U.S.dollarspertCO?.

ReadmoreNote(s):Worldwide;2023;Costsareexpressedaslife-cyclecosts.Source(s):IEA(2020,2021);IPCC(2021);S&PGlobalTotalcarbondioxideremoval(CDR)purchasesworldwidefrom2020to2023(inmetrictons)Globaltotalcarbondioxideremovalsales2020-20235,000,0004,500,0004,000,0003,500,0003,000,0002,500,0002,000,0001,500,0001,000,000500,000018Description:Globalsalesofcarbondioxideremoval(CDR)creditsincreasedfromjust237metrictonsinJanuary2020tomorethan4.7millionmetrictonsbySeptember2023.GlobalsalessoaredtomorethanfourmillionmetrictonsinMay2023,owingtoMicrosoft'spurchaseofalmostthreemillionCDRcreditsfrom?rsted.ReadmoreNote(s):Worldwide;January2020toSeptember2023Source(s):CDR.fyiCHAPTER

04CompaniesCapturecapacityofleadingdirectaircapture(DAC)plantsinoperationworldwideasofApril2022(inmetrictonsofCO?peryear)CapturecapacityofDirectAirCapture(DAC)plantsinoperationworldwide2022CapturecapacityinmetrictonsofCO2peryear01002003004005006007008009009001,000Climeworks(Switzerland/2017)Climeworks(Switzerland/2018)GlobalThermostat(U.S./2010)CarbonEngineering(Canada/2015)Climeworks(Italy/2018)600500365150Climeworks(Switzerland/2016)Climeworks(Iceland/2017)50505050Climeworks(Germany/2019)Climeworks(Germany/2020)Climeworks(Iceland/2021)420Description:AsofApril2022,Climeworks,locatedinSwitzerland,wastheleadingdirectaircapture(DAC)companyintermsofcapturecapacity,followedbyGlobalThermostatandCarbonEngineering.TheannualcapturecapacityofClimaworks'plantinSwitzerland,establishedin2017,was900metrictonsofcarbondioxideperyear.ReadmoreNote(s):Worldwide;2022Source(s):EnergyMonitor;IEACarbondioxideremoval(CDR)salesworldwideasof2023,byleadingsupplier(inmetrictons)Globalcarbondioxideremovalsales2023,byleadingsupplierSoldCO?removalsinmetrictons1,000,000

1,500,0000500,0002,000,0002,500,0003,000,0002,760,000?rstedDrax2,002,0001PointFiveCO280680,000450,000315,812163,83896,296HeirloomCharmIndustrialClimeworksNeustark71,98462,00061,940EquaticMashmakes21Description:Danishenergycompany?rstedisoneoftheleadingsuppliersofcarbondioxideremoval(CDR)creditsworldwide.In2023,Microsoftsignedadealwith?rstedtobuycreditsfor2.76millionmetrictonsofCDRsoveraperiodof11yearsusingbioenergywithcarboncaptureandstorage(BECCS).Meanwhile,UK-basedpowercompanyDraxGroupannouncedamajorcarbonremovaldealwithRespiraInternationalin2021fortwomillionCDRsoverafive-yearperiod,tosellonavoluntary[...]

ReadmoreNote(s):WorldwideSource(s):CDR.fyiCarbondioxideremoval(CDR)purchasesworldwideasof2023(inmetrictons)Globalcarbondioxideremovalpurchases2023,bycompanyPurchasedCO?removalsinmetrictons1,000,000

1,500,000

2,000,0000500,000400,0002,500,0003,000,0003,500,0003,134,637MicrosoftAirbusAmazon250,000193,125131,73863,752NextGenFrontierJPMorganChaseShopify47,20744,03540,00039,500SwissReBCGUBSFinancial22Description:Microsoftisthelargestbuyerofcarbonremovalcreditsworldwide,purchasingroughly3.1millionmetrictonsofcarbondioxideremovals(CDR)asofSeptember2023.Some2.7millionmetrictonsofthistotalwillbesuppliedbyDanishenergyprovider?rstedoveraperiodof11years,makingitoneofthelargestevercarbonremovaldealstodate.

ReadmoreNote(s):WorldwideSource(s):CDR.fyiTotalvolumeofcarbon-offsetcreditsbasedonCO?removalpurchasedworldwidebyselectedmajorcompaniesbetween2020and2022(inmillions)Removal-basedcarbon-offsetcreditspurchasedworldwide2020-2022,byselectcompanyCarbon-offsetcreditsinmillions0.00.10.20.30.40.50.60.70.80.91.0ShellMicrosoft0.880.65PetroChinaApple0.420.38Chevron0.33VolkswagenBankofAmericaAXA0.290.140.010.01JPMorganChase23Description:Between2020and2022,eightofthetop50companiesworldwidebasedonrevenuepurchased3.11millionremoval-basedcarbonoffsetcredits.Themajorityoftheseremoval-basedoffsetswerefromtree-plantingprojects,withjustasmallnumberbasedonbiocharprojects.ShellandMicrosoftpurchasedthehighestvolumeofremoval-basedcreditsduringthistime,at0.88and0.65million,respectively.ReadmoreNote(s):Worldwide;2020to2022;Eachcarbon-offsetcreditsisequivalenttoonemetrictonofCO?Source(s):CarbonBrief;CDP;Expert(s)(Trencheretal(2023));Varioussources(AlliedOffsets,NetZeroTracker,CDP)Totalfundsraisedbyleadingcarboncaptureandstorage(CCS)startupsworldwideasof2023(inmillionU.S.dollars)LeadingCCSstartupsworldwide2023,byfundsraisedFundsraisedinmillionU.S.dollars0100200300400500600700800900Climeworks(CH)Svante(CA)786.69447.15CarbonClean(DE)242.48Verdox(U.S)170.06Prometheus(U.S)115.84110.26CarbonEngineering(CA)CarbonRecyclingInternational(IS)Heirloom(U.S)89.7657.637.534.43CarbonAmerica(U.S)BluePlanetSystems(U.S)24Description:Climeworkswasthehighestfundedcarboncaptureandstorage(CCS)startupworldwideasof2023,with787millionU.S.dollarsraised.BackedbytheMicrosoftClimateFund,ClimeworksisaSwisscompanyspecializingindirectaircapturetechnologyandhadavaluationofalmosttwobillionU.S.dollarsin2023.Halfofthe10highestfundedCCSstartupsin2023werebasedintheU.S.ReadmoreNote(s):Worldwide;2023Source(s):GlobalCorporateVenturing;PitchBookCapacityofdirectaircapture(DAC)expansionprojectsofselectedcompaniesworldwidein2022,withestimatesfor2030(inkilotonsofcarbondioxideperyear)Directaircaptureexpansionprojectcapacities2022-2030,byselectedcompanyCapacityinktCO?/year203020,000202230,000010,00040,00050,00060,00059,00070,0001PointFive/CarbonEngineering(U.S./CA)CarbonCapture(U.S.)0.45,00001,5001.5GlobalThermostat(U.S.)Climeworks(CH)1,200525Description:Climeworks'DirectAirCapture(DAC)expansionplansareprojectedtoseethecompanycapture1.2millionmetrictonsofcarbondioxide(CO?)peryearby2030.Climeworks?wasthehighestfundedCCSstartupworldwideasof2023.DACtechnologiescaptureCO?directlyfromtheatmosphere.ReadmoreNote(s):Worldwide;2022Source(s):IEACHAPTER

05OutlookCO?capturecapacitybydirectaircapture(DAC)ofplannedprojectsworldwidefrom2024to2030,bystage(inmillionmetrictonsofCO?peryear)DirectAirCaptureCO?capacityofplannedprojectsworldwide2024-2030,bystageGaptoNZEOperatingcapacityAdvanceddevelopmentEarlydevelopment80706050403020100202420252026202720282029203027Description:Therearecurrently16DACfacilitiesinadvanceddevelopmentorunderconstructionworldwide.Shouldalltheseprojectsgoahead,?DACdeploymentwouldreacharound4.7MtCO?peryearby2030.?However,togetontrackwiththeNetZeroEmissionsby2050scenario,DACdeploymentwillneedtoreach75MtCO?peryearby2030.ReadmoreNote(s):Worldwide;2023Source(s):IEABioenergywithcarboncaptureandstorage(BECCS)capturecapacityofoperationalandplannedprojectsworldwidefrom2022to2030,bystage(inmillionmetrictonsofCO?peryear)BECCSCO?capturecapacityofplannedprojectsworldwide2022-2030,bystageGaptoNZEOperationalUnderconstructionandadvancedFeasibilityandconcept2001801601401201008060402002022202420262028203028Description:Asof2022,roughlytwomillionmetrictonsofcarbondioxide(MtCO?)peryearwerecapturedbybioenergywithcarboncaptureandstorage(BECCS)projectsworldwide.Projectscurrentlyintheearlyandadvancedstagesofdevelopmentcouldcaptureroughly50MtCO?peryearby2030.However,thisfallswellshortofthe190MtCO?peryearremovedneededby2030forthenetzeroemissionsby2050scenario.

ReadmoreNote(s):Worldwide;2023Source(s):IEAForecastbioenergywithcarboncaptureandstorage(BECCS)capacityneededfornet-zeroemissionsfrom2030to2050(inmillionmetrictonsofcarbondioxideequivalent)RequiredBECCSemissionsremovaltoreachglobalnet-zero2030-20501,4001,3031,2001,00080060040020009292461202020302040205029Description:Bioenergywithcarboncaptureandstorage(BECCS)capacitywillneedtoincreasesignificantlyovertheupcomingdecades,inordertoachievethenet-zeroemissionstargetby2050.ItisforecastthatBECCSwillneedtoremove246millionmetrictonsofcarbondioxideequivalent(MtCO?e)in2030,withthatfiguresurpassing1.3GtCO?eby2050,ifnet-zeroemissionsistobeachieved.ReadmoreNote(s):Worldwide;2023;inanet-zeroemissionsby2050scenarioSource(s):EnergyMonitor;IEADistributionofbioenergywithcarboncaptureandstorage(BECCS)capturecapacityofoperationalandplannedprojectsworldwidefrom2022to2