Durable CDR Market: Which Solution is Right for Your Business?

 

In the face of escalating climate concerns, businesses worldwide are increasingly looking toward carbon dioxide removal (CDR) solutions to offset emissions and achieve long-term sustainability goals. According to Inkwood Research, the global durable carbon dioxide removal (CDR) demand market is expected to grow at a CAGR of 11.47% during the forecast period 2030 to 2040.

Durable CDR technologies, designed to sequester carbon for hundreds to thousands of years, provide viable strategies for companies seeking to make a lasting impact on their carbon footprint. 

In this guide, we explore the primary durable CDR approaches—direct air capture (DAC), biochar production, and mineralization—highlighting the pros, cons, and costs of each.

Request a FREE sample of the Durable Carbon Dioxide Removal (CDR) Demand Market

We also closely analyze some real-life examples where these implementations have been successful. By comparing these solutions, we aim to help businesses across industries determine the most suitable option for their unique needs.

1.  Direct Air Capture (DAC): 

Direct air capture technology involves extracting CO₂ directly from the atmosphere using large-scale machinery. Companies like Climeworks and Carbon Engineering are leading the DAC space, deploying systems that capture CO₂ and either sequester it underground or utilize it for commercial products like fuels and building materials.

Pros:

·         Scalability: DAC systems can be scaled depending on carbon capture needs, making them flexible for varying levels of CO₂ removal.

·         Versatility: CO₂ captured via DAC can be permanently stored underground or repurposed, which opens avenues for potential revenue.

·         High Carbon Removal Potential: DAC has the potential to capture millions of tons of CO₂ annually, especially with advancements in renewable energy powering the systems.

Cons:

·         Energy Intensive: DAC requires significant energy, especially when using conventional power sources. For instance, Climeworks’ Orca Plant in Iceland requires geothermal energy to operate sustainably.

·         High Costs: Currently, DAC is one of the more expensive CDR options, with costs averaging between $250 and $600 per ton of CO₂ captured.

Aligning with this, Microsoft has committed to using DAC as part of its ambitious goal to be carbon-negative by 2030. The company has also partnered with Climeworks to purchase DAC credits, illustrating how DAC aligns well with technology-driven companies with large emissions reduction budgets.

For industries with significant carbon footprints, like cement manufacturing and fossil fuel companies, DAC provides an efficient way to offset emissions. For instance, Occidental Petroleum partnered with Carbon Engineering in August 2023 to integrate DAC into its operations, aiming to become a net-zero oil producer by 2040.

Stay up-to-date with what’s trending in the Global Durable CDR Demand Market

2.   Biochar Production: 

Biochar is a carbon-rich material produced by heating organic biomass (like crop residues and forestry waste) in a low-oxygen environment. This process, known as pyrolysis, locks carbon into a stable form that, when added to soil, sequesters CO₂ while improving soil health.

Pros:

·         Enhances Soil Health: Biochar improves water retention, nutrient availability, and overall soil fertility, which can be highly beneficial for agricultural sectors.

·         Lower Carbon Sequestration Cost: Biochar production is relatively low-cost, averaging around $30 to $120 per ton of CO₂.

·         Co-Benefits for Agriculture: Farmers and agricultural businesses can enhance crop yields while also sequestering carbon.

Cons:

·         Limited Scale: Biochar’s impact is geographically limited, requiring land for both biomass sourcing and biochar application.

·         Dependence on Biomass Availability: The success of biochar depends on access to biomass, which may be limited in certain regions or industries.

Biochar is highly suitable for the agricultural sector, forestry, and industries focused on regenerative land use practices. Farmers and landowners can use biochar to boost crop yields, creating a direct financial incentive. For example, Cool Planet, a biochar company based in the United States, has partnered with farmers to provide biochar as a soil amendment, showing improved crop yields and durable carbon storage. This makes biochar appealing for businesses in the agribusiness sector looking to enhance sustainability practices.

Cool Planet has successfully produced biochar for large-scale agricultural use, partnering with agricultural companies to sequester carbon while enhancing soil health. Likewise, in Kenya, a biochar initiative has helped small-scale farmers increase crop yields by up to 20%, demonstrating biochar’s potential in sustainable agriculture.

Kindly click here to view the LinkedIn post related to this market

3.   Mineralization

Mineralization, or enhanced weathering, involves reacting CO₂ with specific minerals (such as basalt or olivine) to form stable carbonates. This process naturally occurs over long geological timescales, but companies like CarbonCure and Heirloom have developed methods to accelerate mineralization for rapid carbon capture.

Pros:

·         High Durability: Once CO₂ is mineralized, it is permanently stored as rock, making it one of the most secure forms of carbon storage.

·         No Long-term Maintenance: Unlike other CDR methods, mineralized carbon doesn’t require monitoring after sequestration.

·         Potential for Carbon-Intensive Industries: Mineralization can be used in construction materials, allowing industries to integrate it into existing processes.

Cons:

·         Geographical Limitations: Mineralization requires specific minerals and geological conditions, making it less viable in areas without access to suitable rock formations.

·         Slow Uptake in the Market: While promising, mineralization remains less adopted commercially than other CDR methods.

Construction and infrastructure sectors stand to benefit greatly from mineralization. CarbonCure Technologies, for instance, supplies concrete producers with the ability to inject CO₂ into concrete, offering a viable CDR pathway for builders aiming to reduce carbon footprints in urban infrastructure projects. This approach not only sequesters carbon but also improves the strength of the concrete, making it a dual-benefit solution for construction companies worldwide.

4.   Afforestation and Reforestation

Afforestation (creating new forests) and reforestation (replanting forests) are natural and low-cost CDR methods. Large-scale initiatives, such as the Trillion Trees Initiative, highlight the potential of forests to sequester significant amounts of CO₂.

Afforestation projects align well with companies in retail and food production looking for community-focused sustainability strategies. Apple Inc, for example, has invested in forest preservation to offset part of its carbon emissions and enhance global biodiversity—a prime example of corporate commitment to ecosystem-based CDR. The company introduced the Restore Fund, a nature-based carbon removal initiative aimed at investing in projects that restore and protect forests, grasslands, and wetlands. 

Its initial investments in Brazil and Paraguay target the restoration of 150,000 acres of sustainably certified working forests and the protection of an additional 100,000 acres of native ecosystems. These efforts are projected to remove 1 million metric tons of carbon dioxide from the atmosphere annually by 2025. Additionally, in April 2023, Apple announced that over 250 of its manufacturing partners have committed to using 100% renewable energy for Apple production by 2030. (Source)

Pros:

·         Low Cost: Generally inexpensive, averaging $1 to $50 per ton of CO₂.

·         Ecosystem Benefits: Forests provide biodiversity, water management, and erosion control.

·         Community Impact: Creates jobs and can support local communities economically.

Cons:

·         Variable Durability: Forests are susceptible to fires, pests, and land-use changes, which can compromise carbon storage.

·         Slow Process: Afforestation takes considerable time for newly planted trees to grow and mature, meaning it can take decades before significant carbon storage and ecological benefits are realized.

·         Land Use Complications: Competes with land needed for agriculture and urban development, particularly in densely populated regions.

Concluding Reflections

Choosing the right durable CDR solution requires a strategic alignment with industry needs, budget, and environmental impact goals. For large-scale industrial emitters, DAC and mineralization provide long-term durability but at higher costs, whereas biochar offers cost-efficiency for agricultural sectors. Afforestation and reforestation can serve as budget-friendly options for industries focused on biodiversity and community impact.

As the need for carbon neutrality intensifies, companies are encouraged to explore a blend of these approaches or collaborate with CDR providers to meet their climate goals. With the right CDR approach, businesses can not only offset their carbon footprint but also contribute to a sustainable future.