Can you describe the moment when you knew that your idea had to be the start of a company?
Entrepreneurship has always been in our blood. We've started several companies in the past, so this isn't our first venture. We already had a similar solution in 2017 that we knew would work, but there was no market at the time. That changed in 2019 when we came across Puro.earth, which had established a marketplace for selling carbon removal certificates. And the market developed rapidly. During the COVID period, we focused on research and development. Now we are developing our second-generation modular system, which will allow us to scale quickly and efficiently. We have always had the attitude of going our own way and making a positive contribution, both in the environmental or social sector.
Looking ahead, what's your most important milestone for 2024?
We have a couple of significant milestones lined up for 2024. The primary one is the operation of our second-generation system, which consists of one module of several components that will be combined for the larger commercial system. Once operational, it marks a crucial demonstration milestone, leading to both technical and commercial advancements. We have partnerships in place for various products, enabling industry trials that will inform our routes to market, expected to be completed and operational within the next three to six months.
The second milestone is to have our system audited and certified by a reputable auditor for carbon removal. This certification will allow us to sell our first certified ton of carbon removal. Following this, armed with solid figures, we will seek project finance for our large-scale facility. Once secured, the commissioning of the entire factory is estimated to take about six months.
The volume of carbon removal that we require worldwide is 10 Gigatons per year. Where do you think we are now? Are we on an exponential upward trajectory, or is progress too slow?
Progress could certainly be faster, as there's always room for improvement. Many essential mechanisms are just beginning to take shape. For instance, the US is investing in CDR (Carbon dioxide removal), while the EU is developing frameworks like the CRCF (Carbon Removal Certification Framework). These initiatives are laying the groundwork with regulations, standards, and monitoring protocols. Once these structures are in place, I anticipate an acceleration in progress. Additionally, many CDR providers are still in the development phase or securing funds for deployment. While there's been a surge in new companies, they have yet to fully enter the market. Hence, the global supply of CDR remains relatively low.
Websites like cdr.fyi offer insights into the volume of carbon removal purchases, which, so far, have been dominated by a handful of major players, especially Microsoft. We need more purchasers willing to wait for developers to catch up because physical deployment lags behind demand due to the complexities of building physical infrastructure.
One of my favorite questions for start-up founders like yourself is: When it comes to the climate crisis, do you think the glass is half full? Or is it half empty? Can we still make it as the human community, or are we in despair mode?
I don't believe we're in despair mode, but I'd say the glass is probably twice as big as it needs to be. Yes, we do need more carbon removal, but we also need to address our excessive energy consumption as a planet. There are significant energy efficiencies to be gained simply by being smarter about our usage. For instance, commercial buildings often leave lights on unnecessarily after hours, which is just one example of many small changes that can add up over time.
What would be other smart changes?
The key is that we make smarter decisions about the types of energy we use. Increasing the share of renewables on the grid is crucial, and this transition is already underway. While the glass may seem full now, we could probably live just as comfortably with a smaller glass. This would make it easier for CDR companies to fill the gap removing surplus emissions using excess electricity. Despite the current assumptions about abundant energy, there's vast potential for efficiency improvements, especially in transportation. Building better infrastructure for more efficient public transportation could significantly reduce energy consumption.
Human behavior can change faster than infrastructure can be delivered.
We have the technology and expertise to make these changes; what we need is the ambition and will to act. There are plenty of smart engineers and technical experts ready to tackle these challenges if provided with the right environment and incentives.
Thanks, Robert, for your time and the effort for our planet!