Paul Ferguson, Founder and CEO of Accend, a leading carbon removal consulting firm, is a seasoned climate professional with a 20-year track record in the renewable energy and sustainability sectors, serving in board and management positions at the Finnish energy major, Fortum.
Founded in 2020, Accend has quickly become a trusted name in the carbon removal space. The company stands out by seamlessly integrating cutting-edge software with personalized services, providing carbon removal projects with the tools they need to access crucial carbon credit financing.
CW: Tell us a little bit about your journey and the inspiration behind Accend?
Paul: My journey into the renewable energy space began with my experience at Fortum, a Nordic energy major, where I was involved in electricity retail, particularly trading renewable electricity. Working in the Nordic markets, which are dominated by hydro energy, I became deeply interested in sustainability and the transition from fossil fuels to renewables.
My inspiration was fuelled by Al Gore’s film “An Inconvenient Truth”, which laid out the challenges of climate change and the importance of energy in this equation. From there, every role I’ve taken, from corporate positions to startups, has been about creating sustainable business models.
I moved from energy trading to projects like electric car charging and solar panel initiatives, and then to a startup that exported the renewable aspect of Norwegian hydropower to corporate buyers. This led me into discussions with Chief Sustainability Officers across Europe about renewable energy and targets like the SBTI.
I noticed that many companies had addressed their direct emissions but struggled with indirect emissions from their value chain. Additionally, there was skepticism about the carbon credit market, with a desire for something more impactful and credible.
Seeing the need for carbon removal credits, especially being in Scandinavia with its large forestry industry, I explored opportunities that could meet this demand, including timber construction and Biochar. In 2020, I founded Accend with a commitment to carbon removal and accelerating sustainable business. The name ‘Accend’ really speaks to our core mission. It’s all about “accelerating” sustainability, which is exactly what we’re passionate about achieving. Another cornerstone of our identity is community, we’re not just individuals working together; we’re a collective sharing an aspiration for positive change. We firmly believe that the lion’s share of resources should go to those “doing the hard work” on the ground. Having spent over two decades in renewable energy and sustainability, I’ve seen firsthand how other commodity credit markets often funnel excessive value into the hands of financial intermediaries. Our commitment lies in redirecting this wealth to the individuals and communities who truly make a difference.
CW: What role does Accend play in the carbon removal industry?
Paul: At Accend, we have carved out a distinctive niche in the carbon removal industry through our dedicated partnerships with Biochar producers. Our mission is to facilitate their successful entry into the carbon credit market. To accomplish this, we provide a comprehensive range of services designed to help these producers measure and verify the effectiveness of their carbon removal processes, and precisely quantify the amount of CO2 they are mitigating. This involves conducting thorough life cycle assessments, establishing project additionality, engaging stakeholders, and meeting various other critical requirements.
Following the successful certification of the Biochar producers, our role evolves into that of a broker. We strategically connect these producers with corporate buyers or intermediaries in the market, effectively managing transactions of carbon credits. What distinguishes Accend from conventional brokers or traders is our commitment to integrity and trust. We selectively choose producers based on specific criteria aligned with our values and goals. Once chosen, we invest in building long-standing, symbiotic relationships with them
Our involvement with Biochar projects is intimate; we dive deep into the production processes, manage all documentation, and fully comprehend the projects’ environmental and associated benefits. This commitment to transparency and thoroughness equips us to align carbon credits with the specific needs of buyers and guarantees the authenticity and real-world impact of carbon removal.
I believe that Accend’s focused strategy is our strength. We are intentionally aligned more closely with the suppliers, allowing us to directly address Biochar producers’ unique concerns, such as financial requirements and timing for credit sales while supporting their revenue ambitions – whether its immediate or if there’s willingness to delay for potentially better returns.
Our hands-on approach ensures robust and meaningful connections with our suppliers, which is essential. While many other companies concentrate on aggregating varied credit portfolios to satisfy buyers’ offsetting requirements, Accend maintains a steadfast focus on the supply side. We stand by our producers every step of the way, from certification to market entry, engaging in selective brokerage that reflects our in-depth project insight and commitment. This approach allows us to assure buyers of the integrity and value behind each credit we broker.
CW: There’s been a lot of excitement around EU’s Carbon Removal Certification Framework and the potential convergence between compliance and voluntary markets that these kinds of regulations will precipitate. What’s your view on these developments?
Paul: The excitement surrounding the EU’s Carbon Removal Certification Framework (CRCF) and the potential alignment between compliance and voluntary markets are indeed significant. The CRCF is a great development from the European Union, to bring additional confidence and credibility into the market. I believe it will have a substantial impact, not only within the EU but also in the US, where various subsidy and tax credit mechanisms are set to support carbon removal projects. With the US Federal Government dedicating billions of dollars to capture and sequestration projects, we’re witnessing an encouraging trend.
Regarding Biochar’s role, Accend joined a lobbying effort that successfully resulted in Biochar’s inclusion in the CRCF. However, the exact details and methodologies are still under development, and this will undoubtedly take time to finalize. When a compliance market for Biochar is established, alongside other carbon removal methodologies, the true impact will start to unfold.
Drawing parallels with the early years of the ETS, the initial dynamics of the CRCF may differ significantly from what they will evolve into. It’s the detailed supply and demand constraints that will determine price development and, consequently, market growth. Currently, carbon credit prices are significantly higher than those of the ETS, signalling a robust voluntary market.
While the precise details are yet to be ironed out, the direction is clear: The EU Commission’s push for high integrity carbon removal, complemented by the US government’s financial incentives, reinforces the progress made by the voluntary market over the years. This strong political signal, even in the absence of exact details, provides a clear trajectory for the future of carbon removal efforts.
CW: Biochar uses which you believe have a huge untapped potential when it comes to carbon removal?
Paul: I see every category with significant room for growth when it comes to the untapped potential of Biochar use cases. Biochar’s potential extends beyond the commonly known agricultural use. It holds promise for water filtration, and construction materials like asphalt and concrete.
Currently, most identified use cases for Biochar are almost entirely untapped. People have yet to fully discover the benefits of Biochar, which still remain at a relatively nascent stage — akin to a cottage industry in many places.
There’s a need to tell a more compelling story about Biochar’s potential for these industries. The Biochar industry could be characterized as fragmented; it lacks a unified voice or dominant players that could advance the narrative, unlike other sectors such as Carbon Capture, Utilization, and Storage (CCUS). Although the science behind Biochar is not new, it’s relatively fresh in industrial applications with few major players involved so far.
The future growth of Biochar likely needs to come from a grassroots level. It’s not practical to transport Biochar feedstocks or the Biochar itself over long distances due to their bulk, so the industry is conducive to a distributed model. This local approach could be essential in realizing the potential of Biochar across various untapped markets and support community wealth building
CW: Which projects in your portfolio do you believe are unique and would be interesting choices for buyers?
Paul: All of our projects have very unique and interesting characteristics. One project that stands out as an interesting case for buyers is Wakefield Biochar based in the US. They’ve adopted a multifaceted and bold strategy to revolutionize the Biochar industry. Wakefield Biochar has successfully developed a retail brand, leveraging their marketing expertise to gain access to major retail distribution channels, such as Walmart and Sam’s Club. They’ve transformed Biochar into a consumer product while also dedicating substantial efforts to enhancing the production value chain.
Their innovative approach extends to forming partnerships with pulp, paper and sawmill , aiding these partners in addressing their waste management issues and transforming this waste into various specifications of Biochar. This Biochar is then distributed not only through public retail channels but is also used in agriculture and land remediation projects.
In addition, Wakefield Biochar has established a significant operation in Georgia , a region with a rich forestry tradition. From these resources, Wakefield Biochar has grown from a modest beginning into a substantial enterprise a major employer. This growth story and their broad application of Biochar make Wakefield Biochar a particularly exciting prospect for buyers interested in innovative, sustainable solutions.
Another is Carbon Cycle in Germany. They have developed expertise producing feed and agro-grade biochar over several years. They have recently made a significant investment effectively in new equipment increasing their Biochar production capacity five-fold. The availability of carbon removal credit revenues was a significant decision-making factor.
CW: What are your future plans?
Paul: The future for Accend involves an expansion into new methodologies. We’re focused towards Biochar, but we’re also branching into BECCS (Bioenergy with Carbon Capture and Storage) projects, offering services similar to what we’ve done in the Biochar space. This includes conducting life cycle assessments of projects, which often involve operations like paper mills and power stations, followed by the carbon capture, sequestration, and storage aspects.
We are working to assist these BECCS projects in gaining accreditation. Our involvement with Biochar is substantial, yet we don’t see it as the sole solution or the only carbon removal method of interest. We are actively exploring and are interested in various carbon removal methodologies. As we grow and evolve as a company, we anticipate expanding into other methodologies, utilizing our expertise in life cycle assessments and taking credits to market across these new domains. This adaptive and expansive approach ensures Accend remains at the forefront of carbon removal solutions and services.