Supercritical, headquartered in London, an innovative software platform assisting businesses in achieving carbon neutrality and addressing the climate crisis, revealed its successful completion of a Series A funding round, securing $13 million (equivalent to approximately €11.81 million).
Lightspeed Venture Partners, a leading investor in the technology industry, took the lead in the funding round. Other participants in the round include RTP Global, Greencode Ventures, MMC Ventures, and several other contributors.
According to Paul Murphy, a Partner at Lightspeed, Supercritical stands out by focusing exclusively on carbon removal offsets. By directing investments towards areas that have a genuine climate impact and concurrently working towards decarbonization, the startup offers a unique approach. Murphy further highlights Supercritical’s ability to aggregate demand, including through innovative future-proofing models, providing the necessary resources for Carbon Dioxide Removal (CDR) projects to scale within the given timeframe.
Murphy adds that achieving net zero emissions is a significant challenge for most corporations, and a reliable carbon removal platform like Supercritical is essential. He expresses great satisfaction in being part of the journey.
What is the importance of CO2 removal?
The current capacity for Carbon Dioxide Removal (CDR) falls significantly short of the required amount. As outlined by the Intergovernmental Panel on Climate Change (IPCC), scaling up CDR is imperative to limit the global average temperature rise to below 1.5 °C.
In 2022, the total acquisition of Carbon Dioxide Removal (CDR) amounted to approximately 600,000 tonnes, which represents less than 0.01 percent of the estimated 10 gigatonnes required annually by 2050, as indicated by the IPCC.
The CDR market has shown signs of evolution. At the beginning of 2020, a total of 237 tonnes of CDR offsets had been sold. However, earlier this year, individual corporations made million-tonne CDR acquisitions, reflecting a significant shift.
To avert a catastrophic climate scenario, there is an urgent need for accelerated development in the upcoming years.
This is precisely where Supercritical enters the picture, playing a crucial role in addressing these challenges.
The Solution of Supercritical
The company asserts itself as the sole specialist in high-quality, thoroughly assessed, and long-lasting Carbon Dioxide Removal (CDR) projects. These projects encompass a wide range of approaches, including engineered solutions like biochar, direct air capture (DAC), and enhanced weathering, as well as nature-based solutions such as afforestation.
After undergoing Supercritical’s rigorous vetting process, only 6 percent of the available Carbon Dioxide Removal (CDR) projects are accepted for the market.
Supercritical positions itself as a market maker, actively supporting the growth of CDR initiatives by aggregating demand from corporate buyers. Additionally, Supercritical takes the lead in establishing new purchasing arrangements to facilitate the swift expansion of CDR capacity.
In May, Supercritical played a key role in facilitating a significant long-term agreement with Carbo Culture, a biochar supplier. This agreement enabled the pre-purchase of a substantial volume of biochar and the establishment of C1, a groundbreaking facility designed for commercial-scale production of biochar from carbon-rich biomass.
Through Supercritical’s advanced Carbon Dioxide Removal (CDR) techniques, businesses can effectively achieve net-zero carbon emissions by reducing and eliminating them.
With its expansive platform, Supercritical proudly asserts itself as one of the world’s largest carbon removal marketplaces. The platform currently accounts for 35 percent of corporate purchases and includes two of the top 20 global CDR purchasers.
Among Supercritical’s notable clients are Tide, the first fintech company to completely offset 100 percent of its emissions this year. Additionally, trading firm XTX Markets has emerged as one of the top 10 CDR purchasers worldwide. Noteworthy clients also include Veriff, Multiverse, IMC, and several others.
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Capital Usage
Supercritical outlines its plans for the funds, which include expanding its workforce, diversifying its product offerings, and attracting new clients.
Michelle You, Co-founder of Supercritical, expresses enthusiasm about entering a new phase with the funding. She emphasizes Supercritical’s crucial role as a market maker, facilitating the growth of promising carbon removal projects by aggregating demand and supporting their scaling efforts.
You further emphasizes the urgency of the situation, highlighting the narrow timeframe available to initiate the acceleration curve towards achieving the required 10 billion tonnes of annual Carbon Dioxide Removal (CDR) capacity by 2050. Supercritical takes pride in assuming an early, market-leading role in facilitating the scaling of this industry.
Achieve Net Zero Emissions through Carbon Removal Solutions
Supercritical emphasizes that while businesses strive to minimize their carbon emissions, achieving net-zero solely through decarbonization efforts will likely remain elusive for the majority. Therefore, carbon removal becomes essential.
Co-founded by Michelle You and Aaron Randall, Supercritical operates a marketplace that enables businesses to purchase fully certified carbon removal credits aligned with the Science Based Targets initiative (SBTi), a widely recognized sector standard. These credits serve as a pathway for businesses to achieve net-zero emissions.
You highlights the significance of carbon removal, along with ambitious decarbonization measures, in order to limit global warming to below 1.5 °C and mitigate the severe impacts of climate change.
Supercritical takes pride in collaborating with businesses that demonstrate leadership in developing sustainability programs focused on both emission reduction and the adoption of durable carbon removal. It emphasizes that durable carbon removal is the only type of offset that contributes towards achieving net-zero status.
As the exclusive marketplace dedicated to delivering high-quality carbon removal solutions, Supercritical is committed to serving as a trusted partner for businesses committed to realizing net-zero goals, underscoring their mission and dedication in this endeavor.
