NetZero, a French carbon removal firm, has successfully raised €18 million ($19.5 million) from the government-backed investor STOA Infra & Energy. This new funding will facilitate the establishment of additional biochar facilities in Brazil and other tropical regions.
Close-up of a man's hand holding a handful of biochar, Brazilian landscape in the background. AI generated picture.
The financial boost aligns with French President Emmanuel Macron's recent state visit to Brazil and represents a significant stride in NetZero's growth following their earlier €11 million Series A funding. This deal is STOA's inaugural foray into carbon strategy investments and stands out as a landmark transaction in the burgeoning biochar sector, primarily focusing on emerging markets.
Biochar, a substance made from plant residues, is esteemed for its ability to permanently sequester carbon and enhance soil quality. This not only bolsters agricultural output and reduces fertiliser reliance but also supports higher crop yields, playing a crucial role in sustainable farming practices.
Read more: Introducing biochar: a new innovative carbon storage solution
NetZero's approach to biochar, which involves transforming agricultural by-products like coffee husks through pyrolysis (heating in the absence of oxygen), is recognised by both the Intergovernmental Panel on Climate Change (IPCC) and the EU as a vital tool in the efforts for nature conservation. The process also generates renewable energy, part of which powers NetZero’s operations, while the remainder supports local energy needs.
The global interest in biochar is rising, evidenced by its growing carbon credit market. Recent transactions indicate a vibrant demand with prices ranging significantly, showcasing its potential profitability and environmental impact.
Read more: Biochar market analysis: pricing insights and global trends
This significant investment enables NetZero to scale operations, aiming to remove over 5 million tonnes of CO2 by 2030. Presently, NetZero runs two major biochar plants in Cameroon and Brazil, and the new funding is expected to propel these efforts to new heights, positioning Brazil as a key player in global decarbonisation initiatives.
Integrating biochar into land management strategies is crucial for sustainable development, paving the way for a brighter future. By utilising the benefits of biochar, we can support natural ecosystems, combat biodiversity decline, and build a thriving world for future generations. At DGB Group, we are committed to nature-driven solutions that rejuvenate the environment by focusing on reforestation, afforestation, and community-based agroforestry. Our approaches provide clear avenues for businesses and individuals to contribute to nature and address their carbon footprints, helping to create a greener, more sustainable planet.
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