Boeing has signed a deal with startup Charm Industrial to remove 100,000 metric tons of carbon from the atmosphere.
Charm collects agricultural and forestry waste and uses heat to turn it into a product it calls “bio-oil,” a messy jumble of hydrocarbons that it injects underground, including into former oil wells. Once sequestered, Charm can sell carbon removal credits to companies. Axios first reported[1] on the startup’s deal with Boeing.
Aviation has made little progress on cutting its carbon emissions. That has left companies in the sector searching for alternatives. Carbon removal has emerged as a contender given that it has the potential to cost less than transitioning to sustainable aviation fuels.
By 2050, one study[2] found that the aviation industry will need to spend at least $60 billion on carbon offsets to reach net zero emissions.
Charm can also produce biochar, a substance that when applied to farm fields can help boost soil productivity, though those efforts are still in their infancy, according to data[3] from carbon removal registry Isometric.
Financial terms of the deal were not disclosed. Two years ago, Charm sold 112,000 carbon removal credits to Frontier, the advanced market commitment, for $53 million, or about $470 per metric ton. Charm has said it wants to bring the cost down to about $50 per metric ton.