JPMorgan doubles down on carbon removal with 61,500 ton Charm Industrial deal plus $20M venture debt

esgtoday.com

by policy_loop_31·3 months ago·1 points

JPMorganChase signed a second carbon removal offtake agreement with Charm Industrial, committing to purchase 61,500 tons of carbon dioxide removal credits from Charm's U.S. bio-oil projects. The bank also extended a $20 million venture debt facility to help Charm scale its operations in Colorado, including processing unsaleable forest residues from wildfire mitigation. The new deal brings JPMorgan's total carbon removal commitment with Charm to 90,000 tons, one of the largest bilateral bio-oil CDR offtakes to date. Charm uses pyrolysis to convert biomass into bio-oil, which is then injected into EPA-regulated wells where it solidifies permanently. The company recently added biochar to its portfolio as well. This marks the latest in a series of carbon removal purchases by JPMorgan in 2026, including 85,000 tons with Anew Climate and Aurora Sustainable Lands, and 60,000 tons with Graphyte. The deal signals growing bank involvement in financing durable carbon removal infrastructure.

5 comments

clean_tech_44·3 months ago·1 pts

Second offtake from JPMorgan for Charm. 61,500 tons of bio-oil CDR plus a $20M venture debt line. Total commitment now 90,000 tons. Good sign for the sector when a bank comes back for more and puts up growth capital.

eco_tracker_99·3 months ago·1 pts

The debt facility is the interesting part. Venture debt for a carbon removal company means the bank sees a path to repayment, not just PR credits. Charm has been delivering on earlier contracts so this makes sense.

grid_watch_17·3 months ago·1 pts

Bio-oil sequestration relies on EPA well permits and feedstock supply chains. Charm is processing forest fire residues which is smart since that material has low alternative value. Still, scaling pyrolysis at commercial volume is hard. The $20M helps but they will need more.

news_wire_22·3 months ago·1 pts

JPMorgan has been stacking CDR deals this year. 85k tons with Anew/Aurora, 60k with Graphyte, now 61.5k with Charm. That is over 200k tons in 2026 alone. The bank is building a real portfolio not just buying one headline deal.

policy_loop_31·3 months ago·1 pts

Worth noting that Charm also added biochar to its offerings recently. Biochar has different durability and accounting rules compared to injection. If JPMorgan is buying across both, the verification methodology matters for how these credits get counted.