A new cohort of the CEEZER Carbon Coalition accelerator program has successfully graduated in July 2024. The seven companies selected to participate in the second edition of the program —AirSmat, Heimdal, ZeroEx, PRONOE, SeaO2, Silica, and RECOAL— are a step closer to commercialization readiness. Together, these innovative carbon dioxide removal (CDR) players expect to permanently remove over 7 million tons of CO₂e by 2030. 

The CEEZER Carbon Coalition accelerator program supports early-stage project developers in the voluntary carbon market (VCM) in their commercialization journey. It exclusively focuses on durable CDR activities with durability of over a hundred years and thus a low risk of reversal (i.e. Oxford Category 5). The program equips project developers with the tools necessary to bridge the gap between ideation and large-scale implementation, such as understanding buyer needs, navigating contracts or inventory management, and building strong monitoring, verification, and reporting (MRV) systems. 

Buyers can lead the scaling of the CDR market forward and unlock the value of these projects early by investing directly in the Carbon Coalition cohort or in individual projects on the CEEZER platform. 

Scaling the CDR industry to stay below 1.5°C 

CDR is central to meeting the Paris Agreement. However, the current investment level in CDR technologies is much lower than the hundreds of billions of tonnes of CO₂ removal needed to limit global warming to 1.5 or 2°C. To close this gap, novel CDR technologies, such as biochar, direct air capture, or enhanced rock weathering, should scale by a factor of 30 by 2030 and 1,300 by 2050. The companies selected for the Carbon Coalition contribute to the Paris Agreement’s goals with a variety of methods: 

• AirSmat is an AI-driven Agtech democratizing the production of high-quality biochar to sequester carbon and improve farmers' livelihoods in Nigeria and across Africa‍
• Heimdal is building novel limestone-based direct air capture units, with Bantam –US largest operational direct air capture facility–, commencing operations in August 2024.‍
• PRONOE develops water treatment systems that integrate downstream of coastal industry, using the ocean's natural ability to capture and remove CO₂‍
• RECOAL converts waste biomass into hydrochar, also known as “negative emission coal”. A patented process ensures that this product permanently remains in underground vaults‍
• SeaO2 deploys direct ocean capture technology to sequester CO₂ through a scalable and cost-effective electrochemical reaction‍
• Silica permanently sequesters CO₂ and improves crop yields for smallholder farmers through enhanced rock weathering in Mexico‍
• ZeroEx develops high-quality, regionally focused enhanced rock weathering projects to sequester CO₂ and improve smallholder farmer livelihood in Germany

Cohort 2 is set to permanently remove 7 million tCO₂e by 2030

With their diverse geological, terrestrial, and ocean activities, these companies pave the way for scaling the CDR market and contributing to removing millions of tons of CO₂ from the atmosphere. As of August 2024, only 0.38 million tons of CO₂e has been removed, far from the 10 gigaton goal of 2050 according to cdr.fyi. Reaching this goal will require investing today in these technologies. 

Collectively, these CDR players expect to permanently remove over 7 million tons of CO₂e by 2030. Although removal volumes are expected to be modest between 2024 and 2026, they are anticipated to increase sharply thereafter.

The average prices of these seven startups align closely with broader market expectations. Technologies that are currently costly, such as Direct Air Capture (DAC) and ocean-based methods, are anticipated to experience significant cost reductions as they scale and benefit from R&D breakthroughs. In contrast, solutions like biochar, which are already relatively affordable, are expected to see smaller price decreases due to limited potential for further technical advancements.

Gaining early visibility with CEEZER’s global customer base 

The Carbon Coalition aims to connect suppliers with buyers across the CEEZER network at an early stage of project development. PRONOE describes their experience with the program as follows: “The CEEZER Carbon Coalition was a unique opportunity to get insights from high-quality CDR buyers' requirements and expectations while helping us think about the right information infrastructures, narratives, and partnerships to ease customer’s adoption.”

Now active on the CEEZER platform under the “preview” listings, suppliers have a chance to partner with sophisticated buyers looking to invest early in CDR projects. The seven projects display an overview of their issuance timeline and inventory available for forward purchases of credits contracted today and delivered at a future date. Recognizing that these projects are early-stage and do not have full visibility over volumes, prices, and verification timelines, CEEZER has specifically created a separate type of listing. This listing is designed to showcase their basic information and ignite interest from our buyer base. PRONOE further shares that “completion of the program paves the way for PRONOE to integrate a diverse, high-quality portfolio." 

These projects will transition to full listings on the platform once they are registered under the major standards (e.g. Puro, Carbon Standard International, Isometric) and are mature enough to pass CEEZER’s risk screening process. 

A program designed to answer early-stage developers’ needs

The project developers explored key aspects of the VCM through customized individual sessions with CEEZER’s account managers and group sessions led by experts in the field. 

• Understanding buyer drivers & challenges, including the context of CDR and market-shaping guidance
• Diving into policy and market considerations and understanding the benefits of an ecosystem approach between the private sector, policymakers, NGOs, and scientists with the Carbon Business Council 
• Comprehending buyer behavior to get a comprehensive view of buyer groups, sales channels, and decision-making processes through the unique insights of Zooplus, an active buyer in the VCM
• Learning to navigate certifications, registries, inventory management, and pricing with CDR standard Puro
• Building a strong monitoring, verification, and reporting (MRV) system to measure robustly climate impact with Mangrove Systems 
• Managing contracts, payments, and legal issues 

Marcus Lima, Heimdal’s CEO, shared that “the CEEZER Carbon g Coalition was a robust incubator for learning, ideating, and developing our DAC+S credit commercialization strategy.” In the spirit of building a strong and diverse CDR ecosystem, the Carbon Coalition provided project developers with a space to exchange with other CDR players, share challenges and learnings. 

The cohort’s key learning and takeaways from the program 

As the program came to a close, project developers shared the main takeaways they will take with them to continue the commercialization journey: 

1. Registry certification: Participants learned the importance of certifying their projects under leading and renowned registries. They are central to gaining credibility and can be leveraged as selling points with buyers. 

2. Build a strong MRV system: Project developers should assess the best way to build an MRV system, comparing options and choosing to engage with MRV providers or developing in-house capabilities. 

3. Understand buyers: They highlighted the disconnect that can happen between buyers and suppliers and the importance of understanding buyer motivations, credit affordability, mentality, and how project transparency is a key differentiating factor. 

4. Leverage multiple sales channels: In order to reach different buyer groups displaying different needs, it can be beneficial to leverage a diversity of sales channels, from direct sales to marketplaces to maximize reach. 

5. Legal and contractual aspects of a carbon credit transaction: Understanding the structure and intricacies of legal contracts is crucial to negotiating the right terms. Special attention should be paid to exclusivity clauses and non-circumvention agreements. 

6. Being part of a supportive ecosystem: CDR start-ups are confronted with similar challenges and obstacles. Even though they engage in different activities, developers benefit from sharing common experiences and questions. 

With these learnings, Soji Sanyaolu, CEO of AirSmat, concludes, “Engaging with the CEEZER Carbon Coalition has been a transformative experience for us at AirSmat. Their platform has deepened our understanding of the carbon credit market, from tackling buyer challenges to navigating policy intricacies. CEEZER empowers us with invaluable insights to lead the way in sustainability from Africa." 

Next Carbon Coalition application window opens at the end of 2024

The first cohort concluded in February 2024. Applications for the third CEEZER Carbon Coalition cohort will open in December 2024 and the specific date will be communicated accordingly. Are you a project developer with innovative solutions for CDR? This program could be your chance to kickstart your commercialization efforts. Learn more and get notified when the application window opens here. 

In addition, we are always seeking established project developers with high-quality carbon credits for sale to join the CEEZER platform. Schedule a demo call to explore the possibilities.