NextGen, a joint venture between Swiss climate project developer South Pole and Japanese conglomerate Mitsubishi Corp., on Wednesday announced the advance purchase of 193,000 metric tons of carbon dioxide removal credits, dubbed the world's largest diversified portfolio of CDRs.

They are being bought from 1PointFive direct air capture project in Texas; Summit Carbon Solutions' biomass carbon removal and storage project in the U.S. Midwest; and Carbo Culture's biochar project in Finland.

The first two projects are under development. The DAC project is expected to remove and permanently store up to 500,000 mt of carbon per year once fully operational. Summit's project will remove over 9 million mt/year through the capture, transportation and storage of biogenic carbon once completed.

By 2025, NextGen plans to purchase more than 1 million CDRs, it said in a news release.

All projects will be certified and verified under standards endorsed by the International Carbon Reduction and Offsetting Accreditation to ensure that they are of the highest environmental integrity and benefit local communities, the company said.

"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 permanent CDRs accessible for corporate buyers with an average target price of $200 per ton," the company said in the release.

It said the advance purchase demonstrates corporate interest for various CDR technologies that offer long-term removal of CO2.


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--Reporting by Abdul Latheef, alatheef@opisnet.com; Editing by Jeremy Rakes, jrakes@opisnet.com

(END) Dow Jones Newswires

04-26-23 1439ET