With the urgent need to remove billions of tonnes of carbon dioxide (CO2) from the atmosphere annually by 2050 to mitigate the impact of climate change, BluSky Carbon (CSE:BSKY) is stepping up with a cutting-edge solution designed to store carbon for thousands of years while at the same time producing low-cost energy.
Carbon removal is set to become a huge business, according to BluSky Co-Founder and Chief Executive Officer William Hessert, who spoke recently with Canadian Securities Exchange Magazine.
“There’s quite a bit of money being poured into this industry, and this is catalyzing it and creating opportunities for reputable suppliers like BluSky,” Hessert explains. “Carbon removal will likely generate more revenue in 2050 than many major tech companies put together.”
Hessert sees governments pivoting to a compliance market for carbon dioxide in coming years, with the U.S. government set to essentially become a carbon credit consumer when tax credits become technology-neutral.
“There are 66 gases regulated in the U.S., and carbon dioxide will become number 67,” he says.
“The companies building the voluntary market like BluSky are the bridge to the compliance market. That is how carbon removal becomes a multi-trillion-dollar market.”
BluSky captures carbon through the pyrolysis of biomass such as organic waste, which involves heating the waste to a very high temperature with low oxygen levels.
When undergoing pyrolysis, the waste splits into a char and a gas. The char, known as biochar, can store carbon for thousands of years. Meanwhile, BluSky’s pyrolysis process produces enough gas to power itself, thus making it self-sufficient.
The company’s biomass pyrolysis pilot system, the Vulcan II, was successfully commissioned in January 2024 and is designed to remove up to 800 tonnes of CO2 per year.
BluSky is now developing Vulcan Heavy, described by Hessert as the “crown jewel” of pyrolysis, which will convert 5 tonnes of waste per hour into biochar.
Surplus energy from the pyrolysis process is used to power BluSky’s Kronos system, a direct air capture process that removes more CO2 from the atmosphere.
“Typical direct air capture systems can be north of 2,000 kilowatt hours for a tonne of CO2. It affects the net amount of CO2 captured,” Hessert points out.
Adding a third dimension, BluSky’s Medusa carbon mineralization system captures the CO2 from the bioenergy’s exhaust. The Medusa then converts the CO2 into stone as a replacement for underground storage wells. The company completed a Medusa prototype in January 2024 with a larger version currently under development.
BluSky has been able to keep the cost of its system down when compared to other carbon removal technologies due to its feedstock of choice, which requires minimal input costs.
“It’s waste products like wood chips. The American forestry industry is buried in wood chips right now,” Hessert says.
The company’s hybrid carbon removal process was designed to be capital-efficient and scalable to effectively address climate change.
“Our focus has been on building something that can essentially be copied and pasted over and over again to take advantage of different geographies and that can add to economic development,” says Hessert.
This includes being able to “mass-produce’” site selection, feedstock selection, permitting and so on.
“Everything we envision should be coming off an assembly line because to remove billions of tonnes of CO2, we need to be deploying millions of tonnes of capacity every week,” Hessert adds.
“For example, the Medusa and Kronos systems are essentially going to be massive stainless steel towers that are going to remove CO2 both from the bio exhaust and from the atmosphere and then ramped up with the ability to accredit carbon credits and be mass-produced over and over again.”
BluSky aims to have a facility capable of removing more than 150,000 tonnes of carbon per year in 2025.
He compared this to Climeworks’ industry-leading Orca plant in Iceland, which uses direct air capture to remove about 4,000 tons of CO2 from the atmosphere each year.
BluSky expects to achieve initial profitability from equipment sales and the sale of carbon credits from the production of biochar.
It has already secured a US$686,155 contract to build pyrolysis machinery for the City of Minneapolis, Minnesota.
And in late September of this year, the company announced an agreement with a purchaser based in the United States to sell biochar over a 10-year term with a total value of US$105 million.
On the carbon credits side, the company is forging partnerships with various entities that have experience selling carbon removal credits to major companies in the technology, energy and industrial sectors.
Hessert highlights the importance of communicating to enterprises the difference between carbon removal, which involves taking CO2 out of the atmosphere, and carbon offset, which could involve avoiding deforestation or other activities.
“Quite a few of the largest companies, such as Microsoft, are pouring money into carbon removal, and it’s looking like they’re only going to increase their investments. So having partners that can communicate in a way that allows us to grow and remove more carbon is better for shareholders and better for the planet.”
BluSky has also partnered with Cula Technologies for data verification services to ensure transparency for carbon credit certification.
Cula tracks machines, feedstock inputs, output quality and shipped products to verify that one tonne of carbon removal is truly equal to one net tonne of carbon. It uses sensors inside biochar machinery to monitor the temperature of the reaction, confirming its quality. Higher temperature pyrolysis creates higher carbon biochar.
“It creates a level of transparency that is truly unmatched,” Hessert says. “It gives greater assurances to a carbon removal credit buyer. The more assurances they have, the more comfortable they’ll feel purchasing carbon removal credits.”
As a carbon removal pioneer, BluSky will benefit from new opportunities as major players enter the space, bringing their own capital and connections.
“What they are missing is the technology provider and subject matter experts, which paves the way for joint ventures or partnerships,” Hessert notes. “That’s going to allow us to scale even faster.”
While the rate of carbon removal required to achieve climate change goals is daunting, Hessert believes BluSky’s team is positioned to tackle this challenge.
“We’re trying to save the world here,” he says. “We operate like a sports team. This is the major leagues. The championship we’re fighting to win is billions of tonnes of CO2 removed from the atmosphere. We’re sprinting toward it and this is the team to do it.”
This story was featured in Canadian Securities Exchange Magazine.
Learn more about BluSky Carbon at https://www.bluskycarbon.com/.