Skytree, Return Carbon, and Verified Carbon have partnered with EDF Renewables North America (EDFR) to develop large-scale Direct Air Capture (DAC) facilities in Texas. The collaboration between Skytree, Return Carbon, Verified Carbon and EDF Renewables will produce cost-competitive carbon removal credits and support the world’s efforts to lower greenhouse gas emissions.

Strategic Partnership for Carbon Removal

EDF Renewables North America (EDFR) and Return Carbon have entered into a Term Sheet to supply renewable energy to large-scale DAC plants in Texas, which is expected to reach a goal of 500,000 tons annually in negative emissions. This partnership represents a historic milestone in bringing together DAC technology, renewable energy, and geological sequestration capabilities.

Return Carbon will leverage its project development skills, while Skytree will provide scalable DAC technology using its Stratus units. Verified Carbon will add to its sequestration capabilities in the geology space, offering the infrastructure needed for long-term carbon storage. Together, these entities are building the foundation for a solution that can transform the carbon removal sector.

Also read: EDF Renewables’ Huck Finn Solar Project Reaches Commercial Operation

Innovative Energy Optimization with Flexible Power Purchase Agreements

Gabe Messercola, Associate Director of Capital Improvements at EDF Renewables, stated that co-locating DAC development Behind-The-Meter would optimize renewable energy production, reduce exposure to power market fluctuations, and support the growth of both industries. He also mentioned that Return Carbon’s commitment to operational flexibility, along with Skytree’s equipment, shows that DAC can effectively complement intermittent renewable sources, helping to create a stronger and more resilient energy grid.

One of the major components of the arrangement is the application of a flexible model of power with Behind-The-Meter Power Purchase Agreements (PPA). This setup guarantees price stability for EDFR’s renewable energy parks while offering financial benefits during peak electricity pricing. The co-location of DAC plants with EDFR’s renewable energy facility will allow the fullest utilization of on-site wind energy generated, minimizing exposure to power market volatility and leveraging both the renewable energy and DAC businesses.

The International Finance Corporation (IFC), a part of the World Bank Group has signed a Memorandum of Understanding with Cagamas Berhad, the National Mortgage Corporation of Malaysia, to promote increased green building finance in Malaysia and support the nation’s sustainable development objectives.

Supporting Climate-Smart Investments

This partnership assists financial institutions in promoting green investments in construction and housing by equipping them with the ability to craft sustainable finance solutions. These choices, green bonds, credit lines, and green cooling, assist Malaysia in creating a climate-friendly future while green housing becomes more feasible and available to many. The program also aims to assist financial institutions in developing a pipeline of attractive green projects as well as managing environmental, social, and climate-related risks efficiently.

Facilitating Financial Inclusion and Knowledge Exchange

An integral partnership element is building dialogue between the public and banking sectors to address impediments to sustainable housing growth. The project will also concentrate on promoting affordable and accessible green housing, especially for women and lower income groups. By developing a broader market for green mortgage products, the partnership is looking to bridge gaps in housing finance in Malaysia.

Also read: IFC Invests $100 Million in QNB Leasing to Support Sustainable Energy and Blue Finance

Driving Malaysia’s Net-Zero Ambitions

Green building finance scaling is a key step toward meeting Malaysia’s ambition of net-zero emissions by 2050. This collaboration provides thrilling prospects, introducing new financing solutions that promote sustainability while supporting Malaysia’s economy and future resilience.

Judith Green, Country Manager for the World Bank Group in Malaysia, said, “We are delighted to collaborate with Cagamas on this engagement, which will play a critical role in supporting not only the increasing need for green housing in Malaysia, but also the country’s inclusivity agenda”

He added,”Together, we aim to improve access to housing and reduce emissions, encouraging climate-smart investment in the building sector, and strengthen the financial sector’s capacity to support Malaysia in achieving its climate commitments under the Paris Agreement”

This program is IFC’s first in Malaysia’s green building market since it set up a presence in the country in 2023.