Who's Buying the Carbon? Inside Q1 2025’s Biggest CDR Deals

The carbon removal market didn’t just grow in Q1 2025—it made some noise. A fresh report from ClimeFi shows the market is gaining traction fast, and the biggest buzz is coming from the companies putting serious money on the table.

With 700 kilotonnes (kt) of new CDR contracts signed and 267 kt of credits issued, Q1 wasn’t just busy—it was the most active first quarter the sector has seen to date. That’s a 32% jump from this time last year.

The Corporate Giants Leading the Charge

Two names stood out: Google and SkiesFifty. Together, they made up 64% of total carbon credit purchases. Google, in particular, kept the momentum going with its third straight quarter of buying over 100 kt of durable carbon removal.

Their Q1 2025 purchases were no small deals. Google secured 100 kt of biochar-based CDR from Varaha and another 100 kt from bio-oil provider Charm Industrial. That’s the largest biochar-based transaction ever recorded.

Meanwhile, SkiesFifty entered the spotlight with a deal for marine CDR from Gigablue—the biggest marine CDR contract so far. With marine solutions removing 230 kt of CO₂ this quarter, it was a record period for ocean-based technologies too.

>> RELATED: Gigablue Announces Largest Ocean Carbon Removal Agreement with SkiesFifty, Capturing 200,000 Tons Over Four Years

TikTok Joins the CDR Scene

One of the most talked-about newcomers in Q1? TikTok. The social media giant made its first carbon removal purchase — a multi-tech mix of DAC and biochar.

These new entrants matter more than they seem. The sector needs fresh buyers to keep growing, and TikTok’s arrival signals that carbon removal is entering a new phase: mainstream corporate adoption.

So, What Are They Buying?

Purchases spanned across various pathways: marine CDR, biochar, bio-oil, enhanced rock weathering (ERW), and direct air capture (DAC). Here’s a quick breakdown:

• Biomass CDR was the top tech again with 268 kt of purchased credits.
  
• Marine CDR followed close behind with 230 kt—its strongest quarter to date.
  
• DAC attracted the most private funding, pulling in $72.5 million this quarter.
  

Some of these deals came from Frontier, a consortium known for supporting high-quality carbon removal. Its 2025 kickoff purchase involved 47 kt across several projects.

Red Trail Energy Dominates Issuance

When it comes to issuing verified CDR credits, Red Trail Energy is in a league of its own. The U.S.-based company issued 221 kt out of the 267 kt total this quarter, holding over 80% of the market share through its BioCCS operations.

BioCCS was the top pathway in terms of issuance, and Red Trail’s performance didn’t just lead Q1—it continued its streak from 2024, where it was also the top issuer.

>> In Other News: Aemetis Biogas Monthly RNG Production Increased by 55% in March

Projects Worth Watching

Q1 wasn’t just about purchases—it was also about building what’s next. Some of the biggest developments came from:

Stockholm Exergi

In March, Stockholm Exergi announced its final investment decision to build one of the world’s largest BECCS facilities. Backed by $1.8 billion in support from the Swedish government, construction for Beccs Stockholm has already started. When it's up and running in 2028, the facility is expected to remove up to 800 kt of CO₂ annually.

Captura

In Hawaii, Captura launched a new direct ocean capture pilot plant in February. Built with help from Equinor, this site can pull in 1 kt of CO₂ annually and represents a big leap forward in marine CDR deployment.

Hafslund Celsio

Meanwhile in Norway, a carbon capture solution is underway for Hafslund Celsio. The project, supported by SLB Capturi and Aker Solutions, is part of the Longship initiative and is designed to capture 350 kt of CO₂ per year.

Deep Sky

Canada’s Deep Sky secured a 10-year PPA with UK-based Low Carbon, ensuring 10 GWh of solar power will support its carbon removal efforts. This makes Deep Sky Alpha one of the more promising projects to keep tabs on.

Public Funding Steps Up

Sweden’s backing of Stockholm Exergi was the quarter’s biggest public funding news, but not the only one.

• In Canada, the government committed $1.7 million to a DAC project at the University of Toronto and another $24 million to marine CDR, specifically for the ‘Solid Carbon’ initiative.

• The British Columbia Centre for Innovation and Clean Energy (CICE) chipped in an extra $3 million for early-stage carbon removal tech.

Altogether, Q1 saw $1.83 billion in public funding committed—a clear sign that governments aren’t just talking about climate—they’re funding it too.

Private Investment: Slower But Still Moving

Private funding slowed down compared to last year but still reached $102.5 million in disclosed equity rounds.

DAC startups led the way again, with notable rounds like:

• Spiritus – $30 million
  
• Capture6 – $24 million
  
• Origen – $13 million
  
• 44.01 – $5 million
  
• Carbon Reform – $5.5 million
  

Other highlights included Qualterra’s $4.5 million seed raise and Mote's $7 million Series A to advance its biomass-to-energy tech.

Policy Tailwinds

In March, the Science Based Targets initiative (SBTi) dropped a major update to its Corporate Net-Zero Standard. Now, companies can officially use carbon removals to meet their Scope 1 emissions targets. They can choose between mandated, recognized, or combined CDR pathways, each requiring early investment in removal credits.

As the policy evolves, ClimeFi’s analysts expect even more companies to ramp up purchases in the next quarters.

“In all three scenarios, SBTi acknowledges the need for companies to purchase carbon removals early,” the report reads.

“Q1 saw exciting new entrants… with the largest Biochar-based and Marine CDR deals in history.”

Final Thoughts

Q1 2025 wasn’t just a big quarter for carbon removal—it was a signal. More buyers are coming. Big players like Google and TikTok are setting the tone. And the mix of public and private capital is backing real infrastructure.

If this trend continues, carbon removal might just go from niche to normal faster than anyone expected.

Here is the ClimeFi Report: