Tech giants are the first customers for greenhouse gas capture.
Silicon Valley businesses Shopify Inc. and Stripe Inc. invested $11.5 million in a new group of early-stage carbon removal entrepreneurs as part of their ongoing attempts to establish a reliable market for carbon dioxide removal solutions.
The world’s largest tech companies have promised to be the first users of the nearly $1 billion Frontier Initiative’s greenhouse gas capture technology.
The goal is to select promising companies.
This is the second group of firms to receive a $925 million investment from Frontier, which started last year. These startups are focusing on methods to absorb greenhouse gases, such as storing CO2 deep underground or extracting it from the ocean.
It is intended to identify prospective carbon removal businesses and support their launch by pledging to be one of their first customers or by applying for research funds.
Experts on climate change anticipate that by 2050, the world would need to remove 5 billion tons of carbon from the atmosphere annually to achieve the goal of net zero emissions. Carbon removal technology is still in its infancy and is still relatively expensive.