BP plc has taken a majority stake in Finite Carbon, the largest developer of U.S. forest carbon offsets, with plans to accelerate business opportunities overseas.
Using its internal business accelerator BP Launchpad, the supermajor said it plans to provide the oomph for Finite to expand into international markets. BP already held a stake in the Wayne, PA-based firm, whose portfolio of about 50 projects stretches across three million acres of forestland, representing every U.S. region from Appalachia to coastal Alaska.
“Putting a price on carbon can make it possible for anyone with the ability to protect, plant or improve forests to generate revenue from their efforts,” said Finite President Sean Carney, who founded the company.
“However, there is currently limited infrastructure to quantify, monitor and verify these actions at scale. Thanks to this unique partnership with BP, Finite Carbon now has the resources of a global energy company behind it to help address this enormous environmental challenge and help small landowners access this market.”
The firm connects landowners to businesses that pay a fee per ton of carbon dioxide permanently stored in the forest. Companies may purchase offsets on the market or privately to cancel out their emissions. For example, it has to date generated more than one-third of California compliance offset supply and delivered $500 million-plus to landowners.
No financial details were disclosed about the BP buy-in. However, the increased investment is expected to aid in delivering another $1 billion to landowners by 2030 from the existing business lines and a new platform, CORE CarbonSM.
The web-based platform is designed to enable small landowners to access the carbon offset market. According to BP, the technology removes barriers, including high transaction monitoring and reporting costs.
"Finite Carbon has the potential to build a global platform for managing and financing natural climate solutions,” said BP’s David Eyton, executive vice president of innovation and engineering.
“Deepening our partnership will allow them to accelerate their development and expansion. Finite Carbon’s progression through BP, from venturing investment to majority ownership and introduction to Launchpad, is a great example of how we are applying our unique innovation ecosystem to foster innovation and build material energy businesses in support of our net zero ambition."
Finite would be able to leverage BP’s global footprint to support expansion internationally and to access technological infrastructure to scale up the voluntary carbon market.
Launchpad, established by BP in 2018, focuses on providing multi-year funding and support for rapid start-up development, with BP as a majority shareholder. Launchpad since its start up has invested in Stryde, Lytt, Onyx Insight and Fotech Solutions, and it plans to invest in five more companies by the end of 2021.
