New Report: The Role of Carbon Removals in Decarbonising Aviation
A guide to the evolving world of CDR – from nature-based to cutting-edge technologies, economic hurdles, and strategic partnerships. (Plus: 12 innovators to look out for!)
(TL;DR) Our latest report explores the potential of carbon dioxide removal (CDR), the challenges it faces, and why it could be the breakthrough aviation needs. Download the full report for free here.
As industries worldwide grapple with their 2050 net-zero goals, CDR – capturing and removing CO2 via various methods – is emerging as a crucial tool in the fight against climate change.
The Intergovernmental Panel on Climate Change (IPCC) has made it clear: all pathways to keeping global warming below 1.5 degrees rely on removing CO2 from the atmosphere. And with McKinsey predicting the CDR market could reach $1.2 trillion by 2050, the time to understand its impact on aviation is now.
For airlines, CDR offers a dual opportunity: it plays a vital role in the production of cleaner, synthetic e-fuels that require no changes to existing aircraft or infrastructure, and it serves as a more transparent and verifiable alternative to carbon offsetting programs, which have faced increasing scrutiny.
Yet, significant cost barriers remain. While $100-$200 per tonne is seen as the threshold for widespread adoption, current CDR costs are much higher – between $300 and $1,000 per tonne. Closing this gap is essential to making CDR a feasible climate solution for aviation.
Key insights from the report:
CDR is essential for producing e-fuels (electrofuels), which combine captured CO2 with green hydrogen. These fuels offer a circular solution, capturing CO2 from the atmosphere, converting it into fuel, and potentially recapturing it after combustion.
The global supply of biogenic CO2, estimated at 320-370 million tonnes per year, falls short of meeting the potential demand from aviation and other hard-to-abate sectors, making direct air capture (DAC) and other CDR methods critical for scaling up.
Leading airlines and aerospace companies are investing in CDR through partnerships with startups and purchasing carbon removal credits, signalling the industry's readiness to adopt these solutions.
As carbon offsetting faces growing scrutiny, CDR provides a more direct, verifiable way to reduce aviation emissions by physically removing CO2 from the atmosphere, enhancing credibility in sustainability efforts.
Current CDR costs, particularly for DAC, range from $600 to $1,000 per tonne of CO2. Projections for future costs vary, with some estimates as low as $110-$137 per tonne, while others remain more conservative at $341-$374 per tonne.
Innovations like direct ocean capture (DOC) and improvements in DAC systems hold promise for reducing CDR costs and increasing carbon removal efficiency, which is crucial for scaling up.
Governments in the U.S., Canada, and the EU are implementing tax credits and funding programs to support CDR, providing a favourable environment for the technology’s growth and adoption in aviation.
Get the complete picture
With insights into 12 pioneering companies in the CDR space, our report is an essential read for anyone looking to stay ahead in the industry’s race to net zero.
To explore more innovations in electric, hybrid-electric, hydrogen, and SAF technologies, check out our previous reports here. Don’t miss our new book, Sustainability in the Air, and SimpliFlying CEO Shashank Nigam’s podcast of the same name.
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