Investment
8 min read

Carbon utilization: Building a legacy in the climate era

Published on
May 7, 2024
Contributors
Iain Evans
Anodyne Chemistries
Tags
Private Markets
Energy & Infrastructure, ESG
Direct (Minority)
Cleantech, Impact, Carbon, Renewables
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In the pursuit of a prosperous, low carbon future, investors and innovators alike are turning their attention to carbon utilization. This innovative approach to putting carbon dioxide to work offers a unique opportunity for investors seeking financial rewards and environmental benefits. As the world grapples with the pressing issue of carbon emissions and their impact on climate change, the commercial potential of carbon utilization is gaining momentum, making it a hot topic in the worlds of finance, policy and industry.

Carbon utilization, also known as carbon capture and utilization (CCU), is a concept that seeks to turn carbon dioxide (CO2) into a valuable resource. Rather than simply burying CO2 or venting it into the atmosphere, CCU technologies use CO2 from industrial plants, and transform it into marketable products. This approach aligns with global sustainability goals and offers a host of economic opportunities for investors willing to back these innovative solutions. 

Anodyne Chemistries, a carbon utilization company based in Canada, represents a new breed of chemical innovators seizing the CCU opportunity to turn the tide on CO2 and capitalize on the economic prospects in this burgeoning field.

Anodyne harnesses biology to make low carbon chemicals. It employs enzymes, nature’s factories, to deliver products with incredible efficiency. Enzymes are nature’s catalysts, which have evolved over millions of years to be extremely energy and carbon efficient.

“When we thought about building a chemical company for the climate era, using enzymes was a no-brainer” says Manou Davies, Chief Scientific Officer at Anodyne. “The tools we now have available to us, thanks to a revolution in synthetic biology and AI, enables us to program and produce enzymes in a way that’s never been possible before”.

Anodyne has developed a method to use enzymes for carbon utilization, enabling a world of products made from CO2. Anodyne’s secret source – electrification. Rather than use expensive chemical energy, Anodyne electrifies enzymes allowing them to be more productive, for longer, producing only the chemical you want. No by-products mean low processing costs and ultimately cost competitive products which traditional green alternatives have been unable to achieve.

The growing urgency of carbon utilization
The urgency of addressing carbon emissions is not lost on investors. In recent years, the consequences of climate change have sparked a growing global consensus on the need to take bold actions. Many countries, industries, and investors are joining the race to put emissions to work.

As companies build out their portfolios of climate smart products, they present an attractive opportunity for wealth creation in the climate era. The chemical technologies that displace fossil fuels have the potential to disrupt traditional industries and create new markets, offering substantial returns for those who invest early in their development and implementation.

“Industrial engagement has been staggering,” says Iain Evans, Anodyne’s Chief Executive. “Everyone is looking for cost competitive, sustainable alternatives and bringing substantial volumes online as soon as possible. From shampoos and cosmetics to electric car parts and transportation fuels, companies are thinking about how to lock CO2 into existing products. Our immediate focus is on scaling our technology to serve large volume, building block chemicals, such as methanol, and build strategic partnerships focused on high-value specialty chemicals where few viable options exist.”

Diverse investment prospects 
One of the appealing aspects of carbon utilization is its problem-solving application across various industries. Family offices, with their often-diverse 
portfolios and long-term investment horizons, are well-suited to capitalize on this diversity. Here are some key sectors where family offices can make a meaningful impact through investments in carbon utilization:

1\. Chemical industry: Carbon utilization offers an opportunity to reduce carbon emissions in the chemical industry by using CO2 as a feedstock for chemical and plastics production. Family offices interested in long-term sustainability can invest in companies pioneering carbon-to-chemical technologies to help accelerate transformation.

2\. Transportation: Carbon utilization is playing a significant role in reducing emissions in the transportation sector, including carbon-neutral aviation fuels and low carbon marine fuels. Family offices with deep ties into the aviation, marine and logistics sectors may be particularly interested in tracking carbon utilization.

3\. Agriculture, biodiversity and food security: By capturing CO2 emissions from fertilizer production, CO2-based products can be used in agricultural practices like greenhouses and vertical farms as well as in apiaries and orchards. Family offices can contribute to increased crop yields and reduced carbon footprints in food production, securing the future of food for generations to come.

Road towards a sustainable legacy
As industries prepare for a decarbonized future, carbon utilization emerges as a potent and positive force for change, offering both economic returns and a chance to combat climate change. Investors willing to seize this opportunity can not only reap financial rewards but also contribute to a more sustainable and responsible future. By doing so, family offices can bridge the gap between financial prosperity and a legacy of sustainability that will endure for generations to come.