Climate Finance | June 7, 2023

Charm Industrial secures $100 million after inking corporate carbon purchase agreements

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, June 7 – San Francisco-based Charm Industrial prevents the release of carbon dioxide by converting agricultural and agroforestry waste into bio-oil and sequestering it underground. Companies can buy the carbon credits.

Charm says its bio-oil improves soil nutrition more than if the biomass waste were left to decompose on its own.

Its process has been reviewed by Carbon Direct and EcoEngineers.

Charm raised a $100 million Series B round, led by General Catalyst and with backing from Lowercarbon Capital, Thrive Capital and others. Funding will help the company expand its Colorado facility and build a fleet of mobile pyrolyzers.

Ramping up

The company reports sequestering more than 6,000 tons of CO2 through its pyrolyzer, which cleanly burns biomass. Last month, Charm inked offtake agreements for 140,000 tons of CO2 with JPMorgan Chase and the Frontier consortium, whose members include Stripe, Alphabet, Meta, Autodesk, and H&M.

Frontier is planning new offtake agreements with companies implementing biomass carbon removal and storage, or BiCRS, which “has the potential to reach climate-relevant scale in the medium term,” the consortium said.

Charm said the offtake agreements enable the company to “move meaningfully faster than we’d otherwise be able to, accelerating essentially all aspects of our technology and operations.”