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Chris Sacca’s climate investment firm raises $350 million to invest in carbon removal start-ups – CNBC

Chris Sacca, founder of Lowercase Capital LLC, speaks at the 2017 South By Southwest (SXSW) Interactive Festival at the Austin Convention Center in Austin, Texas, U.S., on Saturday, March 11, 2017. The SXSW Interactive Festival feat…….

Chris Sacca, founder of Lowercase Capital LLC, speaks at the 2017 South By Southwest (SXSW) Interactive Festival at the Austin Convention Center in Austin, Texas, U.S., on Saturday, March 11, 2017. The SXSW Interactive Festival features a variety of tracks that allow attendees to explore what’s next in the worlds of entertainment, culture, and technology. Photographer: David Paul Morris/Bloomberg via Getty Images

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Chris Sacca’s climate investment company, Lowercarbon Capital, announced Thursday it raised a $350 million fund specifically to invest in carbon removal start-up companies.

“There has never been a better time to start a carbon removal company,” Sacca wrote in his announcement of the fund.

Sacca said he wants to invest in start-up entrepreneurs looking to scale up their carbon removal technology, and he’s open to any number of solutions from biological enhancements and manipulations to electrochemical solutions to burying carbon deep underground.

“So, come to us with your wildest ideas. They don’t have to be fully baked, and we have no preconceived notions about what might work,” Sacca wrote. “There are entire categories of carbon removal approaches with massive potential that haven’t even been discovered yet.”

On Tuesday, online payments-technology provider Stripe announced it teamed up with Google parent Alphabet, Facebook parent Meta, e-commerce platform Shopify and consulting giant McKinsey to commit to purchasing $925 million worth of permanent carbon removal from companies that are developing the technology over the next nine years. The companies jointly announced the investment with the creation of Frontier, an advanced market commitment funding model that was initially developed to spur demand to develop pneumococcal vaccines for low-income countries in 2009.

Stripe is also an investor in Lowercarbon’s $350 million fund and the proceeds of their investments will go back into buying more carbon removal, Sacca said.

On the whole, the nearly $1 billion commitment is a way to lock in demand for the still-nascent industry.

The lack of demand for carbon removal has meant that science has mostly been relegated to lab projects.

“When it comes to demand for carbon removal, consider that two years ago, the amount of money trying to buy it rounded down to $0. The few companies attempting removal were basically small demonstrations with no clear path to scaled commercialization,” Sacca wrote. “Fast-forward to today, and we see major buyers across the spectrum who just plain get it. This isn’t merely lip service. We are talking call your bluff, show me the f’ing money, cash on the barrel lined up to buy carbon removal.”

There are other recent signs of demand in the market coming from governments.

In the U.S., a bipartisan infrastructure bill included $3.5 billion …….

Source: https://www.cnbc.com/2022/04/14/chris-saccas-investment-firm-raises-350-million-for-carbon-removal.html

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