Exclusive — Boeing Enters Carbon-removal Deal With Startup

Boeing will purchase up to 100,000 metric tons of carbon removal from Charm Industrial, a startup transforming forest wastes into "bio-oil" stored permanently underground.

Why it matters: It's Charm's first aviation deal amid growing emissions from flight — and an aerospace industry seeking climate solutions that can eventually reach a large scale.

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• Terms and timelines weren't disclosed.
  

How it works: Charm uses biomass from forest management, like thinning to prevent wildfires, that would otherwise be burned and release CO2.

• It's heated to extremely high temperatures in equipment called pyrolyzers to create "bio-oil."

• This liquid is injected underground, including in former oil wells.

• The process produces a second product — biochar — that can help remove CO2 when applied to farmlands to boost soil health.

State of play: The federal focus on climate has waned, but many industrial giants are still seeking to meet long-term pledges.

• Charm CEO Peter Reinhardt also noted other benefits from the company's tech — helping wildfire prevention, avoiding fine particulate pollution, capping orphaned wells, and creating jobs.

• "In terms of the broader community impact, it goes pretty far beyond carbon dioxide," he said in an interview.

The big picture: Aviation is a rising CO2 source, and the industry lacks methods at scale to cut emissions as it looks to 2050 net-zero goals.

• Sustainable aviation fuels are still scarce. Today's carbon removal volumes are a drop in the bucket, too.

• Consider that global energy-related CO2 emissions are an estimated 38 billion tons this year.

What we're watching: Right now, carbon removal is about lowering costs, learning, and moving toward large scale in years and decades ahead.

• Jeff Shockey, a top Boeing strategy official, said in a statement that the aerospace giant is"excited to team up with Charm Industrial to support American innovation in carbon removals."
  

Catch up quick: Charm's customers include Google, JPMorganChase, and the Frontier corporate consortium.

• Charm raised a $100 million Series B round in 2023 from General Catalyst, Lowercarbon Capital and others.
  

The bottom line: "By working with Boeing, we get to accelerate a lot of our impact," Reinhardt said.