GFI CDR Catalyst unlocks £1m loan for UK biochar project in first commercial deal

ethicalmarketingnews.com

by grid_watch_17·3 months ago·1 points

The Green Finance Institute launched its CDR Catalyst program, which helped secure a £1 million loan from Oxbury Bank for Restord, a biochar developer in Cornwall. The deal is the first commercial loan to a UK biochar company and uses a forward purchase of carbon credits from philanthropic partner Terraset to reduce lender risk. Restord plans to remove about 2,000 tonnes of CO2 per year by turning organic waste into biochar. The program aims to move carbon removal projects from grant dependency to bankable operations, addressing a gap where UK projects supply less than 1% of global credits despite having over 100 developers. The UK government targets 21.8 MtCO2 of engineered removals by 2035.

5 comments

clean_tech_44·3 months ago·1 pts

First commercial loan for UK biochar is a small step but it shows lenders are starting to look at carbon removal as a real asset class. The forward credit purchase structure is key here.

eco_tracker_99·3 months ago·1 pts

2000 tonnes per year is tiny but that is exactly the point. You have to start somewhere and prove the model before scaling. Interested to see if Oxbury does more of these.

grid_watch_17·3 months ago·1 pts

The 21.8 Mt target by 2035 is huge. We need dozens of these deals per year just to get close. The real test is whether the Catalyst can repeat this structure at volume.

policy_loop_31·3 months ago·1 pts

Philanthropic capital de-risking private loans is a model that works but it is not scalable without policy backing. The UK ETS integration by 2029 is the real lever for price certainty.

retrofit_lens_44·3 months ago·1 pts

Biochar has the advantage of being relatively simple technology compared to direct air capture. But the feedstock supply chain and quality control still need to prove out at scale.