Charm Industrial Raises $100 Million To Accelerate Carbon Removal Efforts

Charm Industrial Raises $100 Million To Accelerate Carbon Removal Efforts

San Francisco-based carbon removal start-up, Charm Industrial, has recently secured $100 million in Series B funding and has already signed agreements with clients to remove 140,000 tonnes of carbon by 2030. The funding was led by General Catalyst and supported by Elad Gil, Exor Ventures, Kinnevik, Lowercarbon Capital and Thrive Capital.

Setting itself apart from conventional approaches like tree planting or carbon offsets, Charm employs a unique carbon removal technique. The firm collects farm waste biomass and transforms it into bio-oil, which is then injected back into the ground. By preventing biomass decomposition and CO₂ release into the atmosphere, Charm's process aims to achieve long-term carbon sequestration.

Charm Industrial recently finalized two significant agreements for carbon removal. The first is with Frontier – a consortium led by Stripe and comprising major tech firms – for the removal of 112,000 tonnes of carbon, valued at $53 million. Additionally, JPMorgan Chase has committed to purchasing 28,500 tonnes of Charm-sourced offsets over the next five years, as part of the bank's $200 million commitment to remove 800,000 tonnes of carbon.

With the new funding, Charm aims to scale its carbon removal capacity to meet the demands of these substantial contracts. While the firm operates from headquarters in San Francisco and a facility in Fort Lupton, Colorado, the majority of its carbon removal operations take place at farms across the heartland of the US. Using mobile pyrolyzers that convert biomass to oil, Charm operates in a distributed fashion, maximizing its reach and impact.

Despite recent reductions in overall venture capital funding due to the uncertain macroeconomic environment, climate tech has shown resilience. Charm's CEO and co-founder, Peter Reinhardt, acknowledges the need for broader support and hopes that new legislation will enable a wider range of carbon removal techniques to receive subsidies. While current tax credits primarily focus on direct air capture, Reinhardt anticipates congressional efforts to expand support for carbon removal initiatives – particularly through amendments to the Inflation Reduction Act.

As the urgency to address climate change intensifies, firms like Charm play a pivotal role in accelerating the transition to a sustainable future. Verdantix has unpacked key points around the voluntary carbon market, addressing uncertainty, drivers, and tech innovation in the space in our report Market Overview: The Future Of Voluntary Carbon Markets. Additionally, Verdantix is looking to explore best practices for utilizing carbon offsets, with our upcoming report on the topic due in September.