Climate solutions provider Charm Industrial announced a new carbon offtake removal deal with JPMorganChase, its second with the bank, with a new commitment to purchase 61,500 tons of carbon dioxide removal (CDR) credits, generated from Charm’s U.S.-based bio-oil projects.

As part of the new agreement, JPMorganChase will also extend a $20 million venture debt facility to Charm, supporting the expansion of the company’s operations.

San Francisco-based Charm began operations in 2021, and has focused primarily on bio-oil production and sequestration, using plants to capture CO2 from the atmosphere, collecting agricultural residue from harvests or forest fire management, converting the biomass into bio-oil through pyrolysis, and pumping the bio-oil underground in EPA-regulated wells, where it sinks and solidifies in place. The company recently expanded its portfolio to include biochar as an additional offered carbon removal approach.

The new agreement follows an initial CDR offtake deal between the companies in 2023, and brings JPMorganChase’s total carbon removal commitment with Charm to 90,000 tons, making it one of the largest bilateral offtakes of bio-oil CDR in the industry to date.

Taylor Wright, Head of Operational Sustainability at JPMorganChase, said:

“Our initial purchase with Charm marked an important step as we expanded our ambition in carbon removal and refined how we assess quality and deliver real impact across our portfolio. This new purchase—bringing our total to 90,000 tons—together with financial support from our business, reflects how our portfolio has matured over time and Charm’s track record of delivering measurable, durable outcomes across its projects.”

According to Charm, the new debt facility will be used to expand its commercial operations in Colorado, and to help the company rapidly scale its capacity to process otherwise unsaleable forest residues from wildfire mitigation projects.

Peter Reinhardt, CEO and Co-Founder of Charm Industrial, said:

“JPMorganChase is helping build the infrastructure for a permanent carbon removal industry. Having a sophisticated, mission-aligned financial institution come back for a second, larger purchase while also stepping up with growth capital is exactly the kind of validation that tells us we’re on the right path.”

The agreement marks the latest in a series of carbon removal agreements by JPMorganChase, including deals this year for 85,000 tons of carbon removal credits with Anew Climate and U.S. forestry-focused carbon removal platform Aurora Sustainable Lands, and for 60,000 tons with biomass-based CDR provider Graphyte.

Robert Keepers, Head of Climate Tech at J.P. Morgan Commercial Banking, said:

“Charm has successfully developed a promising and bankable technology, with a strong combination of long-term offtakes, a proven ability to deliver against those contracts, and a scalable operational model in Colorado. JPMorganChase is proud to provide financing to Charm – the company has shown it can deliver, and we’re excited to help it do more.”