Carbon dioxide removal certificates
Please note
The material on this website has been prepared by Skandinaviska Enskilda Banken AB (publ) (“SEB”) for information purposes only and shall not be interpreted as an offer for investment etc. The information and statistics provided may change from time to time.
The UN’s Intergovernmental Panel on Climate Change (IPCC) has made it clear that it will not be possible to achieve the climate goals without removing CO2 from the atmosphere. Here, a market is emerging where corporates and institutions can sign agreements with producers that have the technology and capacity to remove carbon dioxide from the atmosphere.
SEB offers corporates and institutions to buy carbon dioxide removal (CDR) certificates from Inherit Carbon Solutions. The Norwegian company develops projects that removes CO2 from the atmosphere by capturing and permanently storing emissions from existing biogas plants in the Nordic region. This tool is complimentary to the reduction of corporate emissions and should not be used as a substitute for reducing emissions.
It can be challenging for producers of CDRs to invest in production capacity as there is uncertainty around how much they will be paid for the finished product. SEB will therefore offer forward contracts where buyers commit to purchasing a specific quantity of CDR certificates at a fixed price and at a specific time.
This substantial imbalance means that prices are expected to rise as we approach the deadline for corporate net-zero commitments. It could therefore be crucial to be on board from the start as an early buyer. It will likely be very expensive to get there too late.
How it works
The CDR projects developed by Inherit Carbon Solutions utilize technology called Bio Energy Carbon Capture and Storage (BECCS). This CDR technology removes carbon from the atmosphere by capturing the biogenic emissions that are released during the production of bioenergy. When biomass burns or decomposes, the amount of carbon dioxide in the atmosphere does not increase over the long term. By capturing and storing this type of carbon dioxide permanently, the amount of carbon dioxide in the atmosphere is reduced. This results in negative carbon dioxide emissions.
The projects are developed in collaboration with several biomethane producers in Sweden, Norway, and Denmark. They aim is to capture and permanently store carbon dioxide that arises during biogas production from, among other things, fish, food, and agricultural waste. Inherit Carbon Solutions currently has the capacity to remove 70,000 tonnes of carbon dioxide per year. Inherit Carbon Solutions has already secured geological storage in Denmark and Norway. The first production is expected to be able to start by the second quarter of 2025.
According to calculations by the Boston Consulting Group, the supply of permanent CDR is estimated to amount to 30 million tonnes by 2030 while demand can reach 200 million to 1.6 billion tonnes. “This substantial imbalance means that prices are expected to rise as we approach the deadline for corporate net-zero commitments. It could therefore be crucial to be on board from the start as an early buyer. It will likely be very expensive to get there too late.” says Maximilian Brodin, head of Commodities at SEB.
Contact us
For further information regarding our carbon dioxide removal certificates offering please contact:
Maximilian Brodin
Head of Commodities
+47 22 82 72 73
Maximilian.brodin@seb.no