Reinsurance giant Swiss Re has signed a 10-year agreement with Climeworks for direct air capture and storage of carbon dioxide worth $10 million (£7.25m).
Climeworks‘ carbon removal solution filters carbon dioxide (CO2) from ambient air using geothermal energy, with the captured CO2 sent for permanent storage in nearby rock layers.
It is dissolved in water and pumped deep underground, where it reacts naturally with the surrounding basalt rock to form stable carbonate minerals – the CO2 turns into stone.
The collaboration marks a milestone towards Swiss Re’s goal of reaching net zero emissions in its own operations by 2030.
Christian Mumenthaler, Swiss Re’s Group Chief Executive Officer and Co-Chair of the World Economic Forum’s Alliance of CEO Climate Leaders said: “To mitigate the risks of climate change, the world needs to scale-up carbon removal on top of, not instead of emission reductions.
“By partnering with Climeworks we can play to our strengths in this endeavour, as a risk taker, investor and forward-looking buyer of climate solutions.”
The two companies have also agreed to collaborate on developing risk management knowledge and risk transfer solutions as well as to explore future investment and project finance opportunities.