South Pole and Mitsubishi Corporation’s joint venture sets new climate standards
Title photo credit: 1PointFive
Mitsubishi Corporation and South Pole, a global climate project developer and solutions provider, have established NextGen CDR Facility (NextGen) to develop the world’s largest diversified portfolio of permanent carbon dioxide removals. NextGen, the first global facility specialized for innovative carbon removal technologies, aims to scale up these technologies and catalyze the market for high-quality carbon removals.
World’s largest diversified portfolio of carbon dioxide removals
NextGen has announced the advance purchase of approximately 200,000 tonnes of carbon dioxide removals (CDRs) from carbon removal projects, which will constitute the world’s largest diversified portfolio of CDRs once delivered. These CDRs will be registered under ICROA-endorsed certification standards and include projects such as the Summit Carbon Solutions’ biomass carbon removal and storage (BiCRS) project, the 1PointFive Direct Air Capture and Storage (DACS) project, and Carbo Culture’s high technology biochar project (C1).
Scaling the carbon removal market
By 2025, NextGen plans to purchase over one million CDRs and advocate for CDR market development. This initiative is backed by foundation buyers who lead the industry, including Mitsui O.S.K. Lines, Boston Consulting Group, LGT, Swiss Re, and UBS. NextGen aims to make CDRs accessible for corporate buyers with an average target price of $200 per ton, enabling risk diversification through a portfolio approach and providing access to deep market expertise.
Addressing the climate crisis
The IPCC Synthesis Report highlights that global rates of CDR deployment are “far below” those necessary to limit global warming to 1.5°C. The establishment of NextGen marks a major milestone in building a scalable market for durable stored CDRs, representing 25% of all purchases to date. These projects will remove significant volumes of atmospheric and biogenic CO2 in the next few years, helping companies secure the financing needed to ensure these projects can be built and scaled up to the highest standards.
Mitsubishi Corporation’s role in NextGen
Mitsubishi Corporation will lead and develop the tech-based CDR market through NextGen, contributing to global low carbonization and decarbonization. Masaru Saito, EVP of Next-Generation Energy Business at Mitsubishi Corporation, stated, “Mitsubishi Corporation will further strengthen our commitment to the sustainable future and continue the contribution for environmental protection through innovation and collaboration.”
Building a sustainable future
The establishment of NextGen and its ambitious goals of scaling the carbon removal market are vital for addressing the climate crisis and ensuring a sustainable future. The collaboration between Mitsubishi Corporation, South Pole, and other industry leaders demonstrates the growing commitment to developing innovative solutions for carbon dioxide removal.