Takeaways

• JPMorganChase has signed a second carbon removal deal with Charm Industrial, committing to 61,500 tons of carbon dioxide removal (CDR) credits.
• The agreement includes a $20 million venture debt facility to scale Charm’s bio-oil and biochar carbon removal operations in the U.S.
• Total carbon removal commitment between the two companies now reaches 90,000 tons, marking one of the largest bio-oil CDR offtakes in the market.

JPMorganChase has expanded its carbon removal partnership with climate solutions provider Charm Industrial through a new agreement that combines large-scale carbon credit purchases with growth financing. The deal highlights rising corporate interest in durable carbon removal technologies and marks a deeper collaboration between the two organizations.

Under the agreement, JPMorganChase will purchase 61,500 tons of carbon dioxide removal (CDR) credits generated from Charm’s U.S.-based bio-oil projects. It will also extend a $20 million venture debt facility to support the company’s expansion efforts, particularly in scaling operations and infrastructure.

This latest deal builds on an earlier 2023 agreement between the two firms. With the new commitment, JPMorganChase’s total carbon removal purchase from Charm now stands at 90,000 tons, making it one of the largest bilateral offtake agreements in the bio-oil carbon removal sector.

Read More: Boeing Carbon Removal Deal: 20,000 Tons of Biochar and ERW Credits Secured

Charm Industrial, founded in 2021 and based in San Francisco, focuses on removing atmospheric carbon through a process involving agricultural and forestry residues. The company collects biomass waste, converts it into bio-oil through pyrolysis, and then injects the bio-oil into EPA-regulated underground wells where it is permanently stored. It has also expanded into biochar as part of its carbon removal portfolio.

The financing component of the deal will help Charm expand its commercial operations in Colorado and increase its capacity to process forest residues, particularly those generated through wildfire mitigation efforts. These materials are often difficult to utilize through traditional markets, making them a key feedstock for carbon removal projects.

Taylor Wright, Head of Operational Sustainability at JPMorganChase, said the new agreement reflects growing confidence in Charm’s technology and delivery capabilities. He noted that the company has consistently demonstrated measurable and durable carbon removal outcomes, helping JPMorganChase refine its broader sustainability strategy.

From Charm’s perspective, the renewed partnership signals strong validation from a major financial institution. CEO and Co-Founder Peter Reinhardt emphasized that JPMorganChase’s continued engagement, both as a buyer and a lender, supports the development of a long-term carbon removal infrastructure market.

The agreement also aligns with JPMorganChase’s broader carbon removal strategy. In recent months, the bank has signed additional deals for carbon credits with providers such as Anew Climate, Aurora Sustainable Lands, and Graphyte, reflecting a diversified approach to carbon dioxide removal investments.

Also Read: Zurich Expands Carbon Removal Strategy With Parallel Carbon Partnership

Robert Keepers, Head of Climate Tech at J.P. Morgan Commercial Banking, highlighted Charm’s scalable model and proven delivery track record. He noted that the combination of long-term offtake agreements and operational performance made the company a strong candidate for both financing and expansion support.

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Source: ESGtoday