Launch of the next generation negative emissions through Direct Air Capture
Nordic DAC Group AB, a Swedish climate startup founded in 2020, today announced bridge funding of SEK 2.3 million through Qalora Capital AB, with five additional business angels. The startup offers carbon dioxide removal from the atmosphere as a service via directairacapture.com (to be launched in Q2, 2021). As such, Nordic DAC Group makes the pre-purchase of negative emissions accessible and automated, providing a springboard for companies racing to get to net-zero and beyond.
Negative emissions necessary on a Giga–scale
There is great demand for negative emissions being driven by the global net-zero emissions target for 2050 along with the climate roadmaps of companies around the world. The Intergovernmental Panel on Climate Change (IPCC) has stated that carbon dioxide removal technologies are essential. Indeed, they are required in almost all scenarios for which the global temperature increase can be limited to well below 2°C. Direct Air Capture (DAC) technology has the advantage of being able to scale rapidly and capture carbon dioxide out of the air, anywhere, at any time. DAC will play an important role in solving the problem of emissions in “hard-to-abate” sectors – aviation, shipping and agriculture – while also providing an essential capability to remove historical emissions that overload the atmosphere.
Although the pioneering DAC technology is costly today, it offers a range benefits over time.
- DAC plants can be located close to permanent carbon dioxide storage without competing with farming land.
- The technology provides clarity into additionality and exact measurability of impact due to third-party monitoring and verifications.
- DAC cost reduction is predicted to be similar to the renewable energy progress made in the last 20 years.
The world is still struggling to lower carbon dioxide emissions, which makes the case for both radical emission reductions and advancement of carbon removal even more urgent. On Earth Day, on April 22 2021, US climate envoy John Kerry stated, “Even if we get to net-zero, we need carbon removal.” Progress is expected to be made in governmental policies and carbon pricing at the COP 26 meeting in Glasgow Scotland, which could then catalyze a leap in carbon removal.
Direct Air Capture emerging as one of the world’s most important climate tools
Nordic DAC Group AB is aiming for the establishment of an industrial consortium to build and operate the Idun DAC plant in Norway. The Norwegian project team has started prospecting work to engage stakeholders and investors in financial modelling. The Nordic countries have an energy mix of green electricity combined with the skills from oil-based and renewable energy and the process industry. DAC therefore fits perfectly well in the Nordics and would generate advanced employment opportunities.
“Accelerating carbon removal using technology and voluntary carbon market actions is crucial. Our team is reaching out to the largest global companies in the Nordics and mapping out their negative emission objectives in their net-zero roadmaps. Conversations are simultaneously underway regarding potential industrial involvement in DAC plants,” says Mikael Bergvall, CEO of Nordic DAC Group“
Interest in carbon removal has grown recently, as demonstrated by the XPRIZE challenge and the USD 100 million donated by Elon Musk. Further, according to global management consultancy McKinsey,
“By 2030, the carbon capture and utilization (CCU) industry is expected to reach USD 800 billion. And by 2050, that number will surge by more than four times to a USD 4 trillion market.”
Growing momentum behind DAC is evidenced by an increased acceptance for pre-purchase business models, so-called PPAs. The purpose of PPAs is to plan, purchase and allocate funds for negative emissions.
“Our first customers are business owners and teams that already operate as early adopters. Knowledge-based companies with a relatively small carbon footprint and high margins can afford to buy quality negative emissions. The catalyst effect of these companies taking a stance, which also attracts the next generation of talents and customers, cannot be underestimated,” continues Mikael Bergvall“
For more information please contact
Mikael Bergvall, CEO, Nordic DAC Group AB
+46 (0) 70 276 00 63