TechGen - The Next Wave of Collaboration in the CDR Market
The Carbon Business Council recently spoke with South Pole about the launch of TechGen, a new Buyers Club designed to accelerate the scale-up of high-durability carbon dioxide removal (CDR).
As more companies commit to net-zero goals, there is growing demand for carbon removal. However, navigating the market independently can be complex. TechGen aims to bridge that gap by managing a diversified portfolio of high-integrity removals.
We sat down with Michael Weber, Global Senior Director at TechGen’ and South Pole, to learn more about how TechGen is helping drive the next wave of collaboration in the carbon removal market and hear more about market forecasts for carbon removal.
###
How do you think buyer clubs can help accelerate the carbon removal market?
Buyer clubs are a critical catalyst for accelerating the carbon removal market, especially for capital-intensive pathways. Pooling together resources addresses several key barriers that have historically slowed down progress. Firstly, buyers clubs de-risk the significant upfront investment companies need to make when purchasing carbon removal. Instead of a single company bearing the entire investment of a long-term offtake agreement with an innovative CDR supplier, a buyer's club allows for shared responsibility. Secondly, by aggregating demand, these clubs send a strong and clear signal to project developers and investors that there is a viable market for high-quality carbon removals. This, in turn, helps to unlock financing and encourages further innovation. Finally, they create a community of practice where sustainability leaders can align on best practices for due diligence and collectively build a more transparent and credible market.
Do you envision a buyer club taking a portfolio approach and supporting a diversity of carbon removal pathways? What does this look like to you?
Absolutely. A portfolio approach is fundamental to TechGen's strategy, and our focus is exclusively on building a diversified portfolio of high-durability, technology-based removals. We believe that no single pathway will be a silver bullet, so supporting a range of innovative solutions is key. This includes methods like Direct Air Capture (DAC), Bioenergy with Carbon Capture and Storage (BECCS), enhanced weathering, and durable biochar.
To us, a robust and resilient portfolio is diversified across several dimensions:
Multiple Pathways: Supporting a mix of different engineered CDR methods to foster innovation across the board and avoid over-reliance on a single solution.
Readiness Level: Blending investments in more commercially advanced technologies while supporting promising, earlier-stage innovations, helping build the pipeline for the future.
Storage Method: Diversifying how the captured CO₂ is stored. For example, via geologic sequestration or mineralisation in materials like concrete.
Geography: Investing in projects across different regions to build a more globally distributed and resilient carbon removal supply chain.
This approach allows us to manage risk effectively while offering our members a robust and forward-looking strategy to meet their climate goals.
What specific challenges do you anticipate in scaling up these technology-based removals, and how is TechGen positioned to help overcome them?
That's a crucial question, as the challenges are significant. The primary hurdles for scaling technology-based removals fall into three main categories: high costs, technological and operational risks, and securing long-term financing. Early-stage projects are expensive, and there's inherent risk in backing a technology that hasn't yet reached full commercial scale. This makes it difficult for developers to secure the multi-year offtake agreements they need to get projects financed and built.
TechGen is specifically designed to tackle these barriers head-on:
Addressing Cost: By pooling the purchasing power of multiple members, we make ambitious, long-term offtake agreements affordable. A multi-million dollar commitment that is daunting for one company becomes manageable when shared among ten. This aggregated demand helps drive economies of scale, putting downward pressure on prices over time.
Mitigating Risk: Our portfolio approach is a powerful de-risking tool. By investing across a curated selection of different technologies and projects, we spread the risk for our members. If one project faces delays or underperforms, the overall portfolio remains robust.
Unlocking Finance: Most importantly, TechGen provides the bankable, long-term demand signal that the market needs. By signing these aggregated offtake agreements, we give developers the revenue certainty they require to secure financing from investors and banks. We are essentially bridging the gap between corporate climate ambition and project-level reality.
What trends are you seeing in the carbon removal ecosystem right now?
The carbon removal ecosystem is evolving at a rapid pace. Here are some of the key trends we’re observing:
A "Flight to Quality": There is a growing emphasis on high-integrity carbon removals with verifiable and durable storage. Buyers are demanding greater transparency and robust Monitoring, Reporting, and Verification (MRV).
The Rise of Technology and Digitalization: We're seeing a significant increase in the use of technology to enhance credibility and efficiency. This includes the use of remote sensing, AI, and blockchain for MRV, as well as digital platforms to improve transparency and liquidity.
Shift to Include Removal Alongside Avoidance: While emissions reductions remain the top priority, there is a growing recognition that we also need to actively remove CO₂ from the atmosphere. We are seeing a notable shift in corporate climate strategies, with a greater focus on investing in and procuring durable carbon removals to neutralise residual emissions.
Market Consolidation and Collaboration: The market is beginning to mature, and we are seeing more collaboration among different players. Initiatives like buyers' clubs and other forms of public-private partnerships are becoming increasingly important for scaling the market.
As we look ahead to 2026, do you have predictions for what’s ahead for carbon removal?
Looking ahead to 2026, we anticipate several exciting developments in the carbon removal space:
Increased Policy and Regulatory Support: We expect to see more governments implementing policies to support the carbon removal market. This could include direct public procurement, tax incentives like the US 45Q credit, and the integration of carbon removals into compliance carbon markets, such as the EU Emissions Trading System (ETS).
Scaling of Novel CDR Technologies: With continued investment and innovation, we expect to see some of the more nascent CDR technologies begin to scale up and move down the cost curve as first-of-a-kind commercial facilities come online.
Growth of the Voluntary Carbon Market: Despite recent challenges, our forecasts indicate the voluntary carbon market will continue to grow. This growth will be primarily driven by increasing corporate demand for high-quality carbon removals to meet science-based net-zero commitments.
Greater Focus on Co-benefits and a Just Transition: As the market matures, we expect to see a greater focus on the social and environmental co-benefits of carbon removal projects. There will be a growing demand for projects that not only remove carbon but also contribute to a just and equitable transition to a low-carbon economy.
Initiatives like TechGen demonstrate the growing momentum behind collective action for high-integrity carbon removal. As the market continues to evolve, collaboration between buyers, developers, and policymakers will be key to scaling impact.
