The Carbon Removers - UBS and Carbonaires carbon finance transaction (Scottish whisky distilleries)

Terms

Announced

14 Nov 2024

Instrument

Debt · Pre-purchaseCredits paid for before they are delivered, which finances the project.

Amount

Undisclosed

Source

carbonaires.com

Parties

Project developer

The Carbon Removers

Country

United Kingdom

Capital providers

Capital providers and the amount counted for each

Party	Role	Amount	Basis
UBSAlso arranger	Investor	Undisclosed	No value disclosed
Pakua Capital	Investor	Undisclosed	No value disclosed

Arranged by

Arrangers and what each arranged

Party	Role	Arranged	Basis
UBS	Arranger	Not credited	No figure recorded
Carbonaires	Arranger	Not credited	No figure recorded

Carbon

Pathway

BECCS

Project type as recorded

Four Nimmons900 carbon sequestration units at Scottish whisky distilleries

Backed by offtakes from

• UBS

What happened

Carbonaires announced on 14 November 2024 that it had completed a first-of-a-kind carbon finance transaction with UBS and The Carbon Removers; The Carbon Removers' own page of 15 November says the finance agreement was signed. UBS agreed to fund, in two tranches, the procurement of four Nimmons900 carbon sequestration units to be installed at several Scottish whisky distilleries, and receives a share of the carbon dioxide removal credits under an Investment and Carbon Credit Offtake Agreement. The units capture biogenic CO2 from fermentation, stored initially in cement and later injected into former oil wells or other permanent storage; credits are verified on Puro.earth. Carbonaires and UBS structured the offering, which UBS makes available to professional investors as a product whose returns come from the sale of the credits, settled on Carbonplace; Pakua Capital, a multigenerational family office, is named as a participant, facilitated by UBS. The amount is not disclosed. Carbonaires' analysis counts about 134,000 removal credits over several years; Clyde & Co gives a project lifetime of 18 years with 599,280 tCO2e projected and nearly 580,000 Puro.earth-verified credits, and the two figures are not reconciled in any source.

Kumo note

- UBS funds the purchase of four carbon sequestration units for Scottish whisky distilleries in two tranches and takes a share of the resulting removal credits, so its capital moves before the credits are delivered. - UBS and Carbonaires also structured a product for professional investors whose returns come from the sale of the credits, settled on the Carbonplace platform with credits verified on Puro.earth; the amount is not disclosed.

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