TD Bank Group has entered into a long-term offtake agreement with Charm Industrial to purchase 44,000 metric tonnes of carbon dioxide removal (CDR) credits. This ten-year agreement, scheduled to commence in 2029, represents a significant commitment from the Canadian financial sector to engineered carbon removal solutions. The deal covers credits generated through a combination of bio-oil sequestration and biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More production. A portion of these removals will be sourced from Charm’s planned operations in Canada, supporting the bank’s internal goals for operational emission reductions and fostering the growth of the voluntary carbon market.

A primary challenge addressed by this partnership is the difficulty of scaling durable carbon removal technologies in new geographic regions. In Canada, the accumulation of agricultural residues and forestry waste from fire management often leads to open-air burning or decomposition, both of which release stored carbon back into the atmosphere and contribute to wildfire risks. Furthermore, early-stage carbon removal companies require substantial, long-term financial certainty to justify the capital expenditure needed for international expansion and the deployment of modular infrastructure in rural areas.

To address these logistical and environmental hurdles, Charm Industrial utilizes modular fast-pyrolysis units that can be deployed directly to the source of the biomassBiomass is a complex biological organic or non-organic solid product derived from living or recently living organism and available naturally. Various types of wastes such as animal manure, waste paper, sludge and many industrial wastes are also treated as biomass because like natural biomass these More. The process converts waste materials, such as corn stover and forestry thinnings, into two distinct carbon-rich products: bio-oil and biochar. While the bio-oil is injected into deep geological formations—often repurposed or abandoned oil wells—for permanent sequestration, the biochar serves as a stable soil amendmentA soil amendment is any material added to the soil to enhance its physical or chemical properties, improving its suitability for plant growth. Biochar is considered a soil amendment as it can improve soil structure, water retention, nutrient availability, and microbial activity.   More that prevents carbon release for centuries. This mobile technology allows for localized processing, reducing the emissions and costs associated with transporting bulky biomass.

The outcomes of this agreement are multifaceted, providing both climate and economic benefits within Canada. By securing a guaranteed buyer for 44,000 tonnes of CDR, Charm Industrial can accelerate its expansion into the Canadian market, creating new opportunities for farmers to monetize crop residues and supporting wildfire fuel reduction efforts. The partnership also utilizes existing industrial infrastructure by repurposing inactive wells for bio-oil storage. For TD Bank, the deal secures a transparent and verifiable stream of high-permanence credits, establishing a benchmark for institutional investment in the biochar and bio-oil sectors.