Uploaded on Feb 4, 2025
Durable CDR Demand Market approaches direct air capture (DAC), biochar production, and mineralization highlighting the pros, cons, & costs of each. Read More
Durable CDR Market: Which Solution is Right for Your Business?
Durable CDR Market: Which Solution is
Right for Your Business?
In the face of escalating climate concerns, businesses worldwide are
increasingly looking toward carbon dioxide removal (CDR) solutions to offset
emissions and achieve long-term sustainability goals. According to Inkwood
Research, the global durable carbon dioxide removal (CDR) demand market
is expected to grow at a CAGR of 11.47% during the forecast period 2030 to 2040.
Durable CDR technologies, designed to sequester carbon for hundreds to thousands
of years, provide viable strategies for companies seeking to make a lasting impact on
their carbon footprint.
In this guide, we explore the primary durable CDR approaches—direct air
capture
(DAC), biochar production, and mineralization—highlighting the pros, cons, and costs
of each.
We also closely analyze some real-life examples where these implementations have
been successful. By comparing these solutions, we aim to help businesses
across industries determine the most suitable option for their unique needs.
1. Direct Air Capture (DAC):
Direct air capture technology involves extracting CO₂ directly from the
atmosphere using large-scale machinery. Companies like Climeworks
and Carbon Engineering are leading the DAC space, deploying systems that
capture CO₂ and either sequester it underground or utilize it for commercial
products like fuels and building materials.
Pros:
Scalability: DAC systems can be scaled depending on carbon capture
needs, making them flexible for varying levels of CO₂ removal.
Versatility: CO₂ captured via DAC can be permanently stored underground
or repurposed, which opens avenues for potential revenue.
High Carbon Removal Potential: DAC has the potential to capture millions of
tons of CO₂ annually, especially with advancements in renewable energy
powering the systems.
Cons:
Energy Intensive: DAC requires significant energy, especially when using
conventional power sources. For instance, Climeworks’ Orca Plant
in Iceland requires geothermal energy to operate sustainably.
High Costs: Currently, DAC is one of the more expensive CDR options, with costs
averaging between $250 and $600 per ton of CO₂ captured.
Aligning with this, Microsoft has committed to using DAC as part of its ambitious goal
to be carbon-negative by 2030. The company has also partnered with
Climeworks to purchase DAC credits, illustrating how DAC aligns well
with technology-driven companies with large emissions reduction budgets.
For industries with significant carbon footprints, like
cement manufacturing and fossil fuel companies, DAC provides an efficient
way to offset emissions. For instance, Occidental Petroleum partnered
with Carbon
Engineering in August 2023 to integrate DAC into its operations, aiming to become a
net-zero oil producer by 2040.
Stay up-to-date with what’s trending in the Global Durable CDR Demand Market
2. Biochar Production:
Biochar is a carbon-rich material produced by heating organic biomass (like crop
residues and forestry waste) in a low-oxygen environment. This process,
known as pyrolysis, locks carbon into a stable form that, when
added to soil, sequesters CO₂ while improving soil health.
Pros:
Enhances Soil Health: Biochar improves water retention, nutrient availability, and
overall soil fertility, which can be highly beneficial for agricultural sectors.
Lower Carbon Sequestration Cost: Biochar production is relatively low-cost,
averaging around $30 to $120 per ton of CO₂.
Co-Benefits for Agriculture: Farmers and agricultural businesses can
enhance crop yields while also sequestering carbon.
Cons:
Limited Scale: Biochar’s impact is geographically limited, requiring land for both
biomass sourcing and biochar application.
Dependence on Biomass Availability: The success of biochar depends on
access to biomass, which may be limited in certain regions or industries.
Biochar is highly suitable for the agricultural sector, forestry, and industries focused on
regenerative land use practices. Farmers and landowners can use biochar to
boost crop yields, creating a direct financial incentive. For example, Cool Planet, a
biochar company based in the United States, has partnered with farmers to
provide biochar as a soil amendment, showing improved crop yields and
durable carbon storage. This makes biochar appealing for businesses in the
agribusiness sector looking to enhance sustainability practices.
Cool Planet has successfully produced biochar for large-scale agricultural use,
partnering with agricultural companies to sequester carbon while enhancing
soil health. Likewise, in Kenya, a biochar initiative has helped small-scale
farmers
increase crop yields by up to 20%, demonstrating biochar’s potential in
sustainable agriculture.
Kindly click here to view the LinkedIn post related to this market
3. Mineralization
Mineralization, or enhanced weathering, involves reacting CO₂ with specific minerals
(such as basalt or olivine) to form stable carbonates. This process naturally
occurs over long geological timescales, but companies like CarbonCure and
Heirloom have developed methods to accelerate mineralization for rapid carbon
capture.
Pros:
High Durability: Once CO₂ is mineralized, it is permanently stored as rock,
making it one of the most secure forms of carbon storage.
No Long-term Maintenance: Unlike other CDR methods, mineralized carbon
doesn’t require monitoring after sequestration.
Potential for Carbon-Intensive Industries: Mineralization can be used in
construction materials, allowing industries to integrate it into existing processes.
Cons:
Geographical Limitations: Mineralization requires specific minerals and
geological conditions, making it less viable in areas without access to suitable rock
formations.
Slow Uptake in the Market: While promising, mineralization remains less adopted
commercially than other CDR methods.
Construction and infrastructure sectors stand to benefit greatly from
mineralization. CarbonCure Technologies, for instance, supplies concrete
producers with the ability to inject CO₂ into concrete, offering a viable CDR
pathway for builders aiming to reduce carbon footprints in urban infrastructure
projects. This approach not only sequesters carbon but also improves the
strength of the concrete, making it a dual-benefit solution for construction
companies worldwide.
4. Afforestation and Reforestation
Afforestation (creating new forests) and reforestation (replanting forests) are natural
and low-cost CDR methods. Large-scale initiatives, such as the Trillion Trees
Initiative, highlight the potential of forests to sequester significant amounts of CO₂.
Afforestation projects align well with companies in retail and food production looking
for community-focused sustainability strategies. Apple Inc, for example, has invested
in forest preservation to offset part of its carbon emissions and enhance global
biodiversity—a prime example of corporate commitment to ecosystem-based
CDR. The company introduced the Restore Fund, a nature-based carbon removal
initiative aimed at investing in projects that restore and protect forests,
grasslands, and wetlands.
Its initial investments in Brazil and Paraguay target the restoration of 150,000
acres of sustainably certified working forests and the protection of an
additional 100,000 acres of native ecosystems. These efforts are projected
to
remove 1 million metric tons of carbon dioxide from the atmosphere annually
by 2025. Additionally, in April 2023, Apple announced that over 250 of
its manufacturing partners have committed to using 100% renewable energy for
Apple production by 2030. (Source)
Pros:
Low Cost: Generally inexpensive, averaging $1 to $50 per ton of CO₂.
Ecosystem Benefits: Forests provide biodiversity, water management, and
erosion control.
Community Impact: Creates jobs and can
support local communities economically.
Cons:
Variable Durability: Forests are susceptible to fires, pests, and land-use changes,
which can compromise carbon storage.
Slow Process: Afforestation takes considerable time for newly planted trees to
grow and mature, meaning it can take decades before significant carbon storage and
ecological benefits are realized.
Land Use Complications: Competes with land needed for agriculture and urban
development, particularly in densely populated regions.
Concluding Reflections
Choosing the right durable CDR solution requires a strategic alignment with industry
needs, budget, and environmental impact goals. For large-scale industrial
emitters, DAC and mineralization provide long-term durability but at higher
costs, whereas biochar offers cost-efficiency for agricultural sectors. Afforestation
and reforestation can serve as budget-friendly options for industries focused on
biodiversity and community impact.
As the need for carbon neutrality intensifies, companies are encouraged to explore a
blend of these approaches or collaborate with CDR providers to meet their
climate
goals. With the right CDR approach, businesses can not only offset their
carbon footprint but also contribute to a sustainable future.
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