How Octavia Carbon intends to fuel Kenya's climate tech revolution
Kenya's unique renewable energy landscape may foster a climate tech revolution in East Africa.
A potential climate tech revolution is brewing in East Africa.
Several startups are tapping into Kenya's unique renewable energy landscape to tackle one of the world's most pressing challenges: removing carbon dioxide from the atmosphere.
One such company is Octavia Carbon, led by CEO Martin Freimüller, who sees Kenya as the key to unlocking the potential of direct air capture (DAC) technology.
Kenya's unique advantages
"Kenya is the world's best place for direct air capture. [It has] a neat combination of the right energy, the right geology and the right talent to really build it at scale and bring that technology down the cost curve”
Freimüller says that central to Kenya's advantage is its abundant geothermal resources: "The number one advantage that Kenya has is clean power 24-7-365". Freimüller explains that Kenya is the world's second-largest producer of geothermal energy, ahead of countries well known for it, like Iceland. In fact, Kenya currently intends to power 51% of its total electricity grid by geothermal by 2030.
This constant, clean energy supply is crucial for DAC operations, which require continuous power to be cost-effective.
But it's not just electricity. Freimüller points out that beyond clean electricity, about 80% of their energy needs are heat. They can use that heat directly — a very low-cost and concentrated form of energy — eliminating a lot of their operational expenditures.
Finally, Kenya's geological makeup offers another significant advantage. "We can actually turn CO2 into rock in a short number of years," Freimüller notes, highlighting a more permanent storage solution than many alternatives.
Contrasting global DAC developments
The significance of Kenya's abundant renewable energy becomes clear when compared to other regions. While climate groups often question allocating renewable energy to new technologies, Kenya's grid is already 93% renewable. In fact, Freimüller says that Kenya currently wastes about one gigawatt-hour of renewable electricity daily due to a lack of demand.
In contrast, Freimüller points to Louisiana, where a large DAC hub is being built despite the state's grid being only 3.5% renewable. "It is maddening to divert renewable electrons to DAC plants in such geographies," he argues, stressing that retiring fossil fuel plants should be the priority in areas still heavily reliant on non-renewable energy.
This scenario presents a compelling opportunity not just for global climate technology needs but also for climate justice. Kenya, like many countries in the Global South, has contributed minimally to global carbon emissions yet faces severe consequences of climate change, including devastating droughts and floods.
Octavia Carbon aims to address this imbalance by building a cutting-edge climate tech industry in Kenya, driving sustainable development and creating high-skilled jobs. As Freimüller says:
"Direct air capture and clean energy are really key ingredients that can drive sustainable development for the country."
Scaling up DAC technology
Octavia Carbon's ambitions are bold.
Starting with a small-scale demonstration plant capturing 30 tons of CO2 annually, they plan to scale up to 1,500 tons per year by the end of next year.
The long-term vision is even more ambitious: a 1 million tons per year plant in Kenya by 2030 and removing 5 to 10 billion tons annually by 2050.
Of course, a key barrier to scaling up is the cost of DAC technology, which currently ranges from $500 to $1,000 per ton of CO2 removed. This contrasts with $100-$150 per ton, the magic number most commonly mentioned, at which point DAC becomes economically viable at scale.
Freimüller believes this is difficult but achievable:
"We see that less than $400 per ton for our specific technology is low-hanging fruit. Getting to sub-$300 per ton, there is some technological learning that we'll need. Less than $200 per ton will be hard."
While Freimüller is cautious about predicting exact timelines, he believes that with the right demand and at a million-ton-per-year scale, the $100 per ton target could be within reach by the next decade.
Implications for aviation and e-fuels
This cost reduction could have significant implications for the aviation sector. Freimüller suggests that in the long term, direct carbon removal might prove more economical and effective than e-fuels for addressing aviation emissions.
"Currently, most observers from the carbon removal side are saying it makes more sense to do carbon removal for those emissions as opposed to doing any kind of SAFs. Even if you're doing bio-SAFs, then bio-carbon removal today probably makes more sense economically."
However, Freimüller notes that the recent loss of trust in carbon markets might drive demand for SAFs in the short to medium term.
The future: a new frontier for climate solutions
Octavia Carbon's approach offers a compelling narrative of innovation, climate justice, and sustainable development. By harnessing Kenya's renewable energy, the company is not only working to make DAC technology economically viable but also demonstrating how climate solutions can be aligned with economic growth in the Global South.
This initiative shows how countries most affected by climate change can also be at the forefront of developing solutions, creating a more equitable response to the climate crisis.
Kenya could well become an unexpected frontrunner in the race to scale up carbon removal technology, potentially reshaping climate action and economic development in the process.
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