Reportedly, human activities release over 40 Gigaton of CO2 into the atmosphere every year. Capturing CO2 from the air is key to reversing global warming. Carbon removal companies are having a moment as carbon capture and storage are moving up on the climate agenda of both European countries. Given its importance, several investors are pumping funding into carbon capture startups.
Recently, we saw Mission Zero and Greenlyte raise funding and now, German startup Novocarbo has joined this list. The company has secured €25 million in growth funding from SWEN Capital Partners (backed Traceless Materials) via its SWEN Impact Fund for Transition 2 fund. Novocarbo will use the investment to expand its network of Carbon Removal Parks in Europe.
Carbon Removal Parks to mitigate climate change
Founded by Caspar von Ziegner in 2017 in Hamburg, Novocarbo builds and operates Carbon Removal Parks that combine different important climate measures. It removes CO2 from the atmosphere while generating regenerative energy and producing a sustainable carbon material called biochar at the same time.
With this investment, Novocarbo plans to build up to 200 Carbon Removal Parks by 2033 and thus expand the network for CO2 removal (CDR) and green heat in Europe. This way, Novocarbo’s Carbon Removal Parks make a double contribution to reaching net-zero emissions. The company is ambitious that it will enable the removal of up to 1 million tonnes of CO₂ from the atmosphere by 2030.
Produces climate-neutral energy
The technology known as Biochar Carbon Removal (BCR) generates climate-neutral heat that can be offered to companies or municipal utilities to decarbonise their energy supply. Using modern pyrolysis technology, Novocarbo processes plant residues into biochar. The carbon present in the biomass is bound and stored in the biochar. Biochar has a variety of positive effects in agriculture, construction, and the textile industry. The pyrolysis process also produces regenerative, climate-neutral excess energy. This can be offered to companies or municipal utilities in the form of “heat-as-a-service” partnerships.
To date, the startup has opened three Carbon Removal Parks in Germany and the team has grown to over 35 employees. Touted to be a pioneer in developing carbon projects and trading carbon removal credits, Novocarbo counts corporates such as Bayer and Swiss Re among its customers. In addition, the company recently closed three long-term carbon credit agreements with a total volume of over 8000 tonnes of CO2.
Caspar von Ziegner, CEO Novocarbo said “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. We’re happy to have found a strong partner in SWEN Capital Partners, who share our mission to remove as much CO2 as possible from the atmosphere while further expanding green heat solutions to bring hard-to-abate industries onto the much-needed net-zero path. Right here, right now, because the climate can’t wait.”
Sven Wissebach, CFO Novocarbo added “Securing €25 million in funding in a challenging investment environment is a strong sign that net-zero solutions like our Biochar Carbon Removal technology are becoming increasingly important as an indispensable tool for mitigating climate change.“
Charlotte Virally, Investment Director SWEN Capital partners said: “Novocarbo develops, owns, and operates infrastructures that generate green energy whilst capturing CO2 through biochar production, which can then be used to decarbonise multiple industries. This perfectly fits our strategy dedicated to decarbonising industries with hard-to-abate emissions. On top of the bold strategy of Novocarbo, the quality of the Management and the team, convinced us to invest.”
