MGA Kita & Pyreg to structure carbon insurance for biochar project
Carbon insurance specialist and Lloyd’s coverholder Kita and German net zero tech firm Pyreg have signed a memorandum of understanding (MoU) to develop the “world’s largest” durable biochar carbon removal project pool.
Pyreg will launch its Climate Finance Solution (PCFS) in Q4 2023 with the aim to permanently remove over four million tonnes of carbon dioxide by 2050. PCFS is a first-of-its-kind leasing scheme with a target of deploying carbonisation systems for 150 biochar projects by 2040.
PCFS will enable biochar producers to access revenue streams from the voluntary carbon market (VCM), while delivering significant volumes of additional and verifiable BCR credits to corporates acting on their climate strategy.
Kita and Pyreg are working to structure an innovative carbon insurance product as part of PCFS, to provide confidence to offtakers of biochar carbon removal (BCR) credits.
Jörg zu Dohna, CEO of Pyreg, said: "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."
Tom Merriman, co-founder and chief product officer, Kita, said: “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.”
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