NextGen, a South Pole/Mitsubishi Corporation joint venture, establishes world's largest diversified portfolio of permanent carbon dioxide removals to scale the market
TOKYO, Apr 26, 2023 - (JCN Newswire) - Mitsubishi Corporation (MC), together with South Pole, global climate project developer and solutions provider, has established NextGen CDR Facility (NextGen) to scale up carbon removal technologies and catalyze the market for high-quality carbon removals. NextGen is the first global facility specialized for innovative carbon removal technologies (tech-based CDR*).
NextGen has announced the advance purchase of approx. 200,000 tonnes of CDRs from carbon removal projects that will constitute the world's largest diversified portfolio of CDRs once delivered. The advance purchase of carbon removals, which will be registered under ICROA-endorsed certification standards, will include CDRs from;
- The world's largest tech carbon removal project, the Summit Carbon Solutions' $5.1bn biomass carbon removal and storage (BiCRS) project being implemented in the Midwestern region of the United States;
- The world's largest scale Direct Air Capture and Storage (DACS) project, being developed by 1PointFive in Texas; and
- Climate tech company Carbo Culture's inaugural high technology biochar project (C1) in Finland.
NextGen plans to purchase over one million CDRs by 2025 and advocate the CDR market development.
NextGen is backed by foundation buyers who lead this industry, namely Mitsui O.S.K. Lines, Boston Consulting Group, LGT, Swiss Re, and UBS. By bringing together high integrity buyers and sellers of ICROA-endorsed certified CDRs, NextGen is helping to create the conditions the market needs to scale: making CDRs accessible for corporate buyers with an average target price of $200 per ton, enabling risk diversification through a portfolio approach, and providing access to deep market expertise.
In March 2023, the IPCC Synthesis Report underscored that global rates of CDR deployment are "far below" those necessary to limit global warming to 1.5degC. However, the market has not yet scaled to a level close to what the IPCC deems as necessary for a safe and sustainable future. Today's announcement marks a major milestone in building a scalable market for durable stored CDRs, representing 25% of all purchases to date. Creditworthy CDR purchases from large projects providing long-term storage will remove significant volumes of atmospheric and biogenic CO2 in the next few years, while helping companies to secure the financing needed to ensure these projects can be built and scaled up to the highest standards. These projects represent NextGen's first advance purchase of a targeted one million CDRs by 2025 that can be realized by 2030 to deliver significant climate impact.
MC will lead and develop tech-based CDR market through NextGen and contribute the global low carbonization and decarbonization.
"NextGen's ambition to scale the market has taken a major step forward following these initial CDR purchases and puts us on a clear pathway to realize our target of 1M durably stored tonnes of CO2 by 2025. Not only will these advance purchases establish a quality standard by ensuring independent certification of technological carbon removals, these commitments from our buyers will unlock financing for many emerging CDR projects and technologies that now have a clear route-to-market for removing historical emissions," says Philip Moss, Chairman of NextGen and Global Director, Tech Carbon Removals, at South Pole.
"Development of CDRs is essential for net-zero emissions by 2050, and we are proud to be part of the great achievement announced by NextGen. Our team contributes to NextGen's further development by leveraging our insight and network in the global CDR businesses. Mitsubishi Corporation will further strengthen our commitment to the sustainable future and continue the contribution for environmental protection through innovation and collaboration," says Masaru Saito, EVP, Next-Generation Energy Business, Mitsubishi Corporation
"We are delighted to be making solid progress on our climate journey by purchasing Carbon Dioxide Removals (CDRs) and supporting pioneering carbon removal technologies. To achieve our net-zero emissions by 2050, reducing our emissions in accordance with the science-based abatement curve is a must and our priority; however, it is no longer enough. We will support climate actions beyond our value chain by purchasing CDRs and add to our chances of keeping 1.5degC within our reach. In this way, we will contribute to sustainable growth for people, society, and the planet, for all life in the next generation," says Takeshi Hashimoto, President & CEO of Mitsui O.S.K. Lines, Ltd.
"Permanently removing carbon dioxide from the atmosphere at scale is vital to achieving net-zero by 2050 and meeting the Paris agreement. We are proud to be an anchor buyer in the NextGen Facility and support pioneering carbon removal technologies that are removing emissions now. This key milestone announced today is another important step to unlock the potential of breakthrough climate technologies," says David Webb, Chief Sustainability Officer, at Boston Consulting Group.
"The launch of NextGen with three promising, innovative projects is an important milestone - for us as a founding buyer as well. We are convinced that Carbon Dioxide Removal (CDR) is one of the solutions crucial to achieve our climate goals. We can only make progress towards our goal of net-zero with scalable solutions, concerted action and investments in the right projects can. NextGen offers the right model to do so," says H.S.H. Prince Max von und zu Liechtenstein, Chairman LGT.
"Today's announcement is another exciting step in making carbon dioxide removal a scalable reality. Offering certainty as an anchor buyer is one of the ways UBS is supporting the development of innovative climate technologies. We are committed to working in partnership on the solutions we need to achieve net-zero emissions by 2050," says Michael Baldinger, UBS Chief Sustainability Officer.
"This is a historic announcement for Summit Carbon Solutions," says Lee Blank, CEO of Summit Carbon Solutions. "The voluntary carbon market is a powerful tool when financing carbon removal projects, achieving meaningful reductions in greenhouse gas emissions, and improving long-term environmental outcomes. Commitments from organizations like NextGen are key in ensuring the success of significant, innovative projects like Summit Carbon Solutions."
"Global carbon markets are experiencing a dramatic shift as buyers favor investment in high-quality Carbon Dioxide Removals from transformative projects that help achieve long-term environmental protection goals," says Jim Pirolli, Chief Commercial Officer at Summit Carbon Solutions. "Through this landmark purchase of CDRs, NextGen and their founding partners have taken a bold step to accelerate the implementation of the technologies and infrastructure required to permanently remove carbon dioxide from the atmosphere at a meaningful scale. We are thrilled that CDRs from our biomass carbon removal and storage project were selected for one of the largest, most important transactions of carbon removals in history."
"Large-scale Direct Air Capture is a vital technology to accelerate the world's path to net zero emissions. We believe transparent, high-integrity and, high-durability CDRs are a necessary carbon removal solution to help achieve global climate targets," says Michael Avery, President and General Manager, 1PointFive.
"The world is waking up to the need of radical emission reductions and carbon removal today to reach net zero. The NextGen facility led by South Pole and Mitsubishi is a best practice example and shows the catalytic effect of bankable offtake contracts in financing this critically needed infrastructure," says Henrietta Moon, CEO of Carbo Culture.
"A few years ago, very few people were buying carbon removal. This is a clear market signal that high quality removals are here to stay. NextGen's commitment will be catalytic for the industry," says Tim Preisenhammer, director of carbon markets, Carbo Culture.
*CDR: Carbon Dioxide Removal
About South Pole
South Pole, a social enterprise recognised by the World Economic Forum's Schwab Foundation, is today the world's leading climate solutions provider and carbon project developer. Since its creation in 2006, it has developed nearly 1,000 projects in over 50 countries that have helped reduce over 200 million metric tonnes of CO2 emissions, and provide social benefits to communities who are particularly vulnerable to climate change. Projects range from sustainable agriculture, forest conservation, waste management, to energy efficiency and decentralized renewable energy. South Pole also advises thousands of leading companies on their sustainability journeys to achieve net-zero emissions. With its global Climate Solutions platform, South Pole develops and implements comprehensive strategies that turn climate action into long-term business opportunities for companies, governments and organizations around the world. South Pole is committed to becoming a B Corp globally across all of its local entities, building on its existing B Corp certification in Australia, the U.S, the Netherlands, and Germany. www.southpole.com/
About Mitsubishi Corporation
Mitsubishi Corporation (MC) is a global integrated business enterprise that develops and operates businesses together with its offices and subsidiaries worldwide, as well as with its global network of group companies. MC has 10 Business Groups that operate across virtually every industry: Natural Gas, Industrial Materials, Chemicals Solution, Mineral Resources, Industrial Infrastructure, Automotive & Mobility, Food Industry, Consumer Industry, Power Solution and Urban Development. Through these 10 Business Groups plus the addition of its Industry Digital Transformation Group and Next-Generation Energy Business Group, MC's current activities have expanded far beyond its traditional trading operations to include project development, production and manufacturing operations, working in collaboration with our trusted partners around the globe. With an unwavering commitment to conducting business with integrity and fairness, MC remains fully dedicated to growing its businesses while contributing to a prosperous society. www.mitsubishicorp.com/jp/en/
About Mitsui O.S.K. Lines
Mitsui O.S.K. Lines is a global leading shipping company operating about 800 ships across the world, headquartered in Japan. MOL develops various social infrastructure businesses centering on ocean shipping, technologies and services to meet ever-changing social needs including environmental protection. MOL's fleet includes dry cargo ships, liquefied natural gas carriers, Ro-Ro car carrier ships, oil tankers, etc. In addition to the traditional shipping businesses, MOL offers social infrastructure businesses including real estate, terminal and logistics, offshore wind power, as well as a Wellbeing & Lifestyle Business such as real estate, cruise ship and ferry. Our activities are truly borderless, based on the operation of one of the world's largest merchant fleets, backed by expertise and technology developed throughout our 140-year history. We support the growth of the world economy with the entire globe as our stage, while continually evolving into an excellent and resilient corporate group. MOL group makes great strides toward becoming a global social infrastructure company and sustains people's lives and ensure a prosperous future from the blue oceans, also provides new value to all stakeholders and grows globally. www.mol.co.jp/en/index.html
About Boston Consulting Group
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders--empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact. Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place. www.bcg.com
LGT is a leading international private banking and asset management group that has been fully controlled by the Liechtenstein Princely Family for over 90 years. As of 31 December 2022, LGT managed assets of CHF 287.2 billion (USD 310.4 billion) for wealthy private individuals and institutional clients. LGT employs over 4900 people who work out of more than 25 locations in Europe, Asia, the Americas, Australia and the Middle East. www.lgt.com
About SwissRe: The Swiss Re Group is one of the world's leading providers of reinsurance, insurance and other forms of insurance-based risk transfer, working to make the world more resilient. It anticipates and manages risk - from natural catastrophes to climate change, from ageing populations to cyber-crime. The aim of the Swiss Re Group is to enable society to thrive and progress, creating new opportunities and solutions for its clients. Headquartered in Zurich, Switzerland, where it was founded in 1863, the Swiss Re Group operates through a network of around 80 offices globally.
UBS convenes the global ecosystem for investing, where people and ideas are connected and opportunities brought to life, and provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as to private clients in Switzerland. UBS offers investment solutions, products and impactful thought leadership, is the leading global wealth manager, provides large-scale and diversified asset management, focused investment banking capabilities, and personal and corporate banking services in Switzerland. The firm focuses on businesses that have a strong competitive position in their target markets, are capital efficient and have an attractive long-term structural growth or profitability outlook. UBS is present in all major financial centers worldwide. It has offices in more than 50 regions and locations, with about 30% of its employees working in the Americas, 29% in Switzerland, 20% in the rest of Europe, the Middle East and Africa and 21% in Asia Pacific. UBS Group AG employs more than 72,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE) www.ubs.com
For more information, visit www.mitsubishicorp.com/jp/en/pr/archive/2023/html/0000051164.html.
Source: Mitsubishi Corporation
Sectors: Energy, Alternatives
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