German climate-tech company Novocarbo has secured €25 million ($27M) in growth funding to establish a pan-European infrastructure network for its net zero solution. Teaming up with a French investor, Novocarbo is set to roll out Carbon Removal Parks across Europe, driving the decarbonization agenda. SWEN Capital Partners, a respected European infrastructure firm, is throwing its weight behind Novocarbo’s ambitious goal of eliminating 1 million tonnes of CO2 by 2030. This funding milestone marks one of the largest investments in Carbon Dioxide Removal (CDR) in Europe in recent times.
With the backing of SWEN Capital Partners’ SWEN Impact Fund for Transition 2, Novocarbo is gearing up to expand its network of Carbon Removal Parks throughout the continent. Specializing in constructing and operating these parks, Novocarbo integrates various climate actions, including extracting CO2 from the atmosphere, generating renewable energy, and producing biochar, a sustainable carbon material. Through Biochar Carbon Removal (BCR) technology, these parks produce climate-neutral heat, offering a pathway for companies and municipalities to decarbonize their energy supply.
BCR involves utilizing carbon stored in biomass, acquired through photosynthesis, to extract carbon from the atmosphere. Biomass, consisting of organic residues, undergoes a high-temperature heating process known as pyrolysis in the absence of oxygen. This process results in the decomposition of organic compounds, with volatile components transitioning into the gas phase. The remaining carbon takes the form of biochar, a solid substance easily stored. Novocarbo’s Carbon Removal Parks, combining CO2 removal with green heat generation, play a pivotal role in achieving net-zero emissions.
Since its inception in 2017, the Hamburg-based startup has launched three Carbon Removal Parks in Germany and expanded its team to over 35 employees. Boasting one of Europe’s largest distribution networks for biochar soil conditioners, Novocarbo has attracted corporate clients such as Bayer and Swiss Re through its innovative carbon projects and carbon removal credit trading. The company recently secured three long-term carbon credit agreements totaling over 8,000 tonnes of CO2.
With the new funding injection, Novocarbo is poised to expand its BCR solution further, providing a crucial means of combating climate change. The company aims to scale up to 200 parks by 2033, enhancing Europe’s CDR and green heating infrastructure. By partnering with SWEN Capital Partners, Novocarbo gains a strategic ally in establishing impactful net zero infrastructure across Europe. SWEN CP’s mission-driven investment approach, focusing on environmental challenges, aligns well with Novocarbo’s objectives.
While reducing greenhouse gas emissions is vital in the fight against climate change, the Intergovernmental Panel on Climate Change (IPCC) stresses the importance of deploying CDR to offset hard-to-abate emissions and achieve net zero emissions. The recent approval of the EU Carbon Removal Certification Framework (CRCF) underscores the need to scale CDR technologies to meet climate targets. Biochar represents a rapidly growing sector in carbon removal, attracting substantial investments and interest from major companies.
Caspar von Ziegner, CEO of Novocarbo, emphasized the role of biochar removal in mitigating climate change, stating, “Our only chance to limit global warming to 1.5 degrees is by unlocking the full potential of impactful net zero technologies like Biochar Carbon Removal… to bring hard-to-abate industries onto the much-needed net-zero path. Right here, right now, because the climate can’t wait.” Novocarbo’s $27 million funding milestone signifies a significant advancement in Europe’s climate mitigation efforts. Its Carbon Removal Parks, powered by BCR technology, could spearhead the battle against climate change and achieve net zero.
