Guest: Brennan Spellacy | CEO | Patch
Category: ☁️ Carbon Reduction | CDR
Podcast’s Essential Bites:
[1:14] BS: "Patch is a software company, [...] founded about 2.5 years ago and we build technology that enables primarily organizations or companies to scale their climate programs. [...] We partner with a really wide variety of what are called carbon removal developers. These are organizations where they actually sequester and remove carbon dioxide, sometimes from the ambient air, sometimes from the broader carbon cycle with the intent to help organizations hit [...] a net zero commitment."
[3:57] BS: "We really make sure any information that's put into the Patch platform [is true]. So that's [for example] a claim around the mechanism of the carbon credit. Is it a removal credit or is it an avoidance credit, what's called additionality or permanence of the credit. [It's] the idea that without this money would this positive environmental benefit have happened? And the permanence is all about, once the better bit happens, how long is it last for? [...] If that information is put into Patch, we're guaranteeing that information."
[6:46] BS: "Patch as a product is highly unopinionated. The only opinion we hold really strongly is if you make a claim, it better be true. Thanks. As a result, you have things like direct air capture on the platform. You have things like enhanced weathering, geological storage, reforestation, and aforestation [...]. But you also have a series of emission abatement technologies or avoided emissions technologies for things like refrigerant destruction."
[11:21] BS: "Carbon removal should not be making up more than 20-30% of your net zero strategy. So there really ought to be a cap and expectations around the quality of the carbon removal."
[12:52] BS: "At the very bottom for something like a reforestation project [...] it might be $15 to $20 per ton for something that's actually truly additional. [...] At the top end of the scale, we have things like direct air capture at $1000 to $1,200 per ton. And there's a few things that guide that price. It's typically the maturity of the technology. [...] And there are other interesting supply and demand dynamics as well, where some of these frontier technologies that have the 1,000 and 1,000+ year permanence associated with them are actually highly in demand. And so some of those suppliers actually have significant pricing power."
[27:17] BS: "The one thing I want to leave everyone with on this chat is really how do we focus on just getting more investment in aggregate and placing more bets. And then once we actually have clarity on what truly works and what doesn't, then we can actually double and triple down. We've done that with renewables globally so far, where global investment in renewables is something like 300 or 400 times that any sort of carbon abatement we know that works. But we haven't really figured out what are those carbon abatement strategies that scale and that's going to be 1/5 of the problem. And so eventually, it's gonna have to be 1/5 of the investment."