22. November 2023
Henriette zu Doha
agriculture | BCR | Biochar | carbon credits | CDR | net-zero

PYREG and Kita announce MOU to struc­ture carbon insu­rance for world’s largest biochar carbon removal project pool

PYREG laun­ched the service, PYREG Climate Finance Solu­tion (PCFS), with the mission to perma­nently remove over four million tonnes of carbon dioxide by 2050.

PCFS enables durable carbon removal at scale through biochar produc­tion from agri­cul­tural, forestry and muni­cipal waste streams. With this solu­tion, corpo­rates can contri­bute to their climate targets while simul­ta­neously acce­le­ra­ting biochar produc­tion. Through a pre-purchase of certi­fied BCRs, PYREG machines are financed for agri­cul­tural busi­nesses. PYREG will be the first company to imple­ment a carbon leasing scheme for its carbo­ni­sa­tion machines, enab­ling agri­cul­tural busi­nesses to access reve­nues from the VCM. By doing this, PCFS creates a closed loop system for their custo­mers whereby farmers can reduce their waste disposal and ferti­liser spend, while impro­ving their soil quality.

“With our PCFS project, toge­ther with Kita, we have signi­fi­cantly reduced the finan­cing risk for BCR projects for custo­mers and laid the foun­da­tions to drama­ti­cally increase the uptake of BCR tech­no­logy. Now the doors are wide open for CDR offta­kers and PYREG custo­mers to opti­mally and rapidly utilise annual biomass residue poten­tial regio­nally and contri­bute to achie­ving global climate targets by 2050. Through PCFS, we enable PYREG custo­mers to benefit from our tech­no­logy at a frac­tion of the purchase price.” – Jörg zu Dohna, CEO, PYREG

Kita and PYREG are working toge­ther to struc­ture an inno­va­tive carbon insu­rance product to underpin this ground­brea­king scheme, protec­ting offtake agree­ments from the risk of under-deli­very of projected carbon credits. Kita’s flag­ship insu­rance product, Carbon Purchase Protec­tion Cover, which protects finan­ciers of forward-purchased carbon credits against under-deli­very, will be imple­mented as part of the PCFS facility’s risk miti­ga­tion frame­work. Insu­rance acts as a stamp of confi­dence for pros­pec­tive clients, enab­ling them to get the green light to invest in impactful CDR projects that have the poten­tial to meet ambi­tious net zero targets. By offe­ring an addi­tional indi­ca­tion of due dili­gence and quality assess­ment, the provi­sion of Kita’s insu­rance can help channel signi­fi­cant global capital towards PYREG’s inno­va­tive solution.

“Kita is committed to deve­lo­ping carbon insu­rance solu­tions that can underpin the growth of the most ambi­tious and impactful carbon removal projects. By redu­cing the risks involved in under-deli­very of carbon credits, our insu­rance can support PYREG’s inno­va­tive biochar machi­nery leasing programme”. – Tom Merriman, Co-Founder and Chief Product Officer, Kita


Submit a Comment

Your email address will not be published. Required fields are marked *


PYREG is a CDR Inno­vator sponsor

PYREG is a CDR Inno­vator sponsor

We’re proud to be a sponsor of the Carbonfuture Carbon Removal Summit 2024 and are thrilled to contribute to the conversation on innovation in CDR at this exclusive event. PYREG will be part of the CDR Innovation Showcase, where we’ll present our...

What exactly are carbon removal credits and how do they work?

What exactly are carbon removal credits and how do they work?

WHAT ARE CARBON CREDITS? A carbon credit is a tradeable unit representing the avoidance, reduction or removal of one metric ton of CO2e from the atmosphere. Organizations and individuals can use these credits to oset their greenhouse gas...