Rising NBS/mCDR/ERW supply pressures engineered DAC demand
Key Questions
What does the CDR.fyi Q1 report reveal about CDR contract volumes?
The report shows a record 2.3Mt in contracted volumes, with biochar accounting for 93% of the total. This reflects strong growth in nature-based solutions alongside expanding durable CDR activity.
How are nature-based solutions (NBS) scaling in the CDR market?
Major buyers such as JPM (60kt) and Boeing (40kt) have committed to NBS projects, while the Frontier $1B fund is further broadening overall supply. These developments increase competition for engineered approaches like DAC.
In what ways does enhanced rock weathering (ERW) compete with direct air capture (DAC)?
ERW benefits from improving MRV methods and co-benefits that appeal to buyers, positioning it as a lower-cost alternative. This dynamic pressures DAC demand within the broader CDR portfolio.
What growth rate is reported for durable CDR and what does it signal?
Durable CDR volumes grew 48.14%, indicating rising momentum in the voluntary carbon market (VCM). The trend suggests increasing buyer interest in higher-permanence removal options.
How do recent registry retirements relate to this highlight?
One million CORCs have been retired in the Puro Registry, supporting project financing and demonstrating active demand for certified removals amid rising supply from NBS and other methods.
CDR.fyi Q1 shows 2.3Mt record contracts (biochar 93%); NBS scaling (JPM 60kt, Boeing 40kt) and Frontier $1B broaden supply. ERW MRV/co-benefits compete with DAC; durable CDR at 48.14% growth signals VCM momentum. New marketplace for durable CDR with scientific due diligence launched. Puro Registry hits 1M CORCs retired. BECCS project signs long-term deals, adding to durable CDR supply.