
Zurich Signs 17,500 Ton Carbon Removal Deal with Climate Solutions Provider Nellie Technologies
Zurich Insurance Group announced today a agreement with bioengineered CO2 removal-focused startup Nellie Technologies, for the purchase of up to 17,500 tons of carbon removal generated through the production of biochar over 5 years.
The deal marks Zurich’s largest carbon removal purchase agreement to date, and places the company within the top 20 corporate CO2 removal purchasers, according to carbon dioxide removals (CDRs) platform CDR.fyi.
Biochar production is emerging as a key carbon removal technology, and has been at the center of several large scale CDR deals by companies including Google and Microsoft. Biochar, or biological charcoal, is produced by heating biomass – typically forest residue, wood or crop waste – in the absence of oxygen, creating a stable form of carbon, which when buried in soil enables centuries-long carbon sequestration, in addition to leading to improved soil fertility.
Launched in 2022, Nellie Technologies produces biochar from algae, using proprietary technology to grow microalgal biomass at speed and at scale, and processing the biomass into biochar and biofertiliser, permanently sequestering carbon and generating carbon dioxide removal certificates (CORCs) for sale in voluntary and compliance markets.
Under the new agreement, Zurich will purchase CORCs from Nellie’s UK operations, with the biomass produced to be used in the UK agricultural sector. Nellie added that the transaction will support its capital requirements as it scales its operations, including expanding its pilot site and enhancing its capacity to remove CO2 from the atmosphere.
Nellie’s Founder and CEO, Stephen Milburn, said:
“This transformative agreement not only validates our vision to scale our systems but provides essential funding to expand our operations. Over the next years, we will transition from pilot operations to full-scale carbon dioxide removal deployment, helping deliver societal and economic co-benefits inherent to our business model.”
According to Zurich, the agreement marks a step on the firm’s plan to achieve net-zero operational emissions by 2030. Zurich set the goal in 2022, accelerating its initial 2050 target by 20 years. The company stated that while it is “committed to reducing our carbon footprint as much as possible,” it is working with a diverse group of technology-based and nature-based solution providers to address unavoidable residual emissions.
Chris Minter, Sustainable Supply Chain Lead at Zurich Insurance said:
“At Zurich Insurance, we recognize the urgency to scale carbon removal capacity to achieve net-zero emissions. We are backing a range of innovative carbon removal solutions, and we are delighted to finalize this multi-year contract after thorough due diligence. This agreement marks a another step forward in our sustainability journey and reinforces our dedication to combating climate change.”
Milburn added:
“Our alignment with Zurich’s climate ambitions is crystal clear. Removing CO2 should only happen after an organisation has exhausted all efforts to prevent emissions. This balanced strategy of reducing emissions as much as possible and removing the rest that will ultimately help fix the climate, and we are proud to be part of this effort.”