Press Release: PYREG and Kita announce MOU to structure carbon insurance for world's largest biochar carbon removal project pool
PYREG announces the upcoming launch of the PYREG Climate Finance Solution (PCFS); a first-of-its-kind leasing scheme with a target of deploying carbonisation systems for 150 biochar projects by 2040. PCFS has the potential to sequester more than four million tonnes of carbon dioxide by 2050.
Kita and PYREG are working to introduce innovative carbon insurance as part of PCFS, providing much needed confidence to offtakers of biochar carbon removal (BCR) credits.
PCFS aims to drive one of the largest pools of durable carbon removals announced in the voluntary carbon market (VCM). PCFS enables biochar producers to access revenue streams from the VCM, while delivering significant volumes of additional and verifiable BCR credits to corporates acting on their climate strategy.
PYREG, a German NetZero Tech company and market leader for high-tech biochar carbon removal and Kita, the global carbon insurance specialist, today announce a memorandum of understanding (MOU) in relation to the development of the world’s largest durable biochar carbon removal project pool.
Biochar, when produced under the right conditions, removes carbon from the atmosphere for thousands of years. When used for agronomic purposes, biochar has the potential to improve soil fertility, reduce contaminants in the soil and improve water retention, making it a versatile climate mitigation and adaptation solution. Biochar is widely considered to address the highest number of UN sustainable development goals (SDGs) of all CDR methods. In addition, PYREG's ultra-low emission carbonisation technology also produces renewable heat. This energy can be fed into local heating networks as green heat or used to generate renewable electricity at production sites. In this way, PYREG's systems have the potential to replace fossil fuel energy and enable self-sufficiency.
PYREG will launch their service, PYREG Climate Finance Solution (PCFS), in Q4 2023 with the mission to permanently remove over four million tonnes of carbon dioxide by 2050.
PCFS enables durable carbon removal at scale through biochar production from agricultural, forestry and municipal waste streams. With this solution, corporates can contribute to their climate targets while simultaneously accelerating biochar production. Through a pre-purchase of certified BCRs, PYREG machines are financed for agricultural businesses. PYREG will be the first company to implement a carbon leasing scheme for its carbonisation machines, enabling agricultural businesses to access revenues from the VCM. By doing this, PCFS creates a closed loop system for their customers whereby farmers can reduce their waste disposal and fertiliser spend, while improving their soil quality.
"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. Now the doors are wide open for CDR offtakers and PYREG customers to optimally and rapidly utilise annual biomass residue potential regionally and contribute to achieving global climate targets by 2050. Through PCFS, we enable PYREG customers to benefit from our technology at a fraction of the purchase price."
Jörg zu Dohna, CEO, PYREG
Kita and PYREG are working together to structure an innovative carbon insurance product to underpin this groundbreaking scheme, protecting offtake agreements from the risk of under-delivery of projected carbon credits. Kita’s flagship insurance product, Carbon Purchase Protection Cover, which protects financiers of forward-purchased carbon credits against under-delivery, will be implemented as part of the PCFS facility’s risk mitigation framework. Insurance acts as a stamp of confidence for prospective clients, enabling them to get the green light to invest in impactful CDR projects that have the potential to meet ambitious net zero targets. By offering an additional indication of due diligence and quality assessment, the provision of Kita’s insurance can help channel significant global capital towards PYREG’s innovative solution.
“Kita is committed to developing carbon insurance solutions that can underpin the growth of the most ambitious and impactful carbon removal projects. By reducing the risks involved in under-delivery of carbon credits, our insurance can support PYREG’s innovative biochar machinery leasing programme”.
Tom Merriman, Co-Founder and Chief Product Officer, Kita