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

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