Our team participated in the European Biocarbon Summit hosted by Hawkins Wright Ltd. The event convened a diverse group of European developers, corporates, biomass traders, and commodity specialists for two days of discussions, with expert panelists and substantive networking.
Some of our big takeaways from the event include:
- EU ETS Compliance as a Catalyst: The EU Emissions Trading Scheme (ETS) remains at the core of the European market, with carbon prices currently standing at around €70/tonne. Although the present prices may not be driving significant industrial decarbonization, the anticipated increase in carbon prices is expected to accelerate the adoption of decarbonization measures in the near future.
- Rise of Biomass Solutions: Biomass-based technologies such as biochar, biocarbon, bio-oil, and syngas are rapidly gaining traction due to their cost-effectiveness, readiness, and scalability. These solutions offer direct substitutes for fossil fuels and are emerging as a primary choice for industrial decarbonization across a range of industries including steel, cement, chemicals, and transportation.
- Harmonizing with EU Sustainability Goals: Biomass solutions are closely aligned with EU sustainability regulations, benefitting from the continual advancements in supply chains. With the surge in carbon prices, these technologies are expected to become increasingly competitive in the long run.
- Emphasis on Modular and Scalable Technologies: The industry's focus is on modular and scalable solutions that can be customized to meet the varying requirements of different sectors, ensuring adaptability and widespread market adoption.
- Dynamics of Project Financing: While several significant projects fall outside our current scope, numerous projects in the sub-$100 million range heavily rely on equity and government funding schemes. Traditionally, these projects have lacked the option of bank financing due to their scale and complexity. However, with many of these projects nearing TRL 9 after years of development, there is a shift towards exploring new capital solutions for sustainable growth.
Stay tuned for our upcoming events, and learn more about our CarbonSmart Conversation webinar “From Plans to Project Finance: Lessons for Carbon Removal Developers” from industry leaders Twelve and Fervo, here.
