Global law firm Clyde & Co announced that it had provided its advice and expertise on the novel Investment and Carbon Credit Offtake Funding Arrangement between The Carbon Removers and Carbonaires in collaboration with UBS, intended to decarbonize the Scotch whiskey supply chain.
This innovative agreement entails the installment of four specialized carbon capture systems called Nimmons900 Units in several whiskey distilleries across Scotland, where they will capture the biogenic CO2 emitted during the whiskey distillation process.
With plans to initially store the captured carbon dioxide in cement, the project will also work towards injecting CO2 into former oil wells and other permanent storage facilities in the future.
The whiskey carbon capture project is set to run for 18 years and is projected to capture 599,280 tons of CO2 equivalent, generating almost 580,000 carbon removal credits, to be verified by Puro.earth.
On their end, UBS has provided two tranches of investment funding that facilitated the procurement of the Nimmons900 Units by The Carbon Removers. As a project investor, UBS will be entitled to receive a percentage share of the generated carbon removal credits.
The Nimmons900 Units, developed by The Carbon Removers, are a first-of-a-kind technology that enables the carbon capture for CCS during the whiskey fermentation process.
As explained by Ed Nimmons, co-founder and chief carbon officer of The Carbon Removers, these units were designed with a capacity that can unlock the removal of 1 million tons of CO2 in Scotland before 2030.
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During the cooperation with Clyde & Co, the law firm team was led by Corporate & Commercial Partner Nick Purnell and assisted by Senior Associate Georgia Losy, who provided The Carbon Removers with guidance on the commercial terms of this agreement.
Expressing content on being part of this agreement, Nick Purnell commented, ”The collaboration between The Carbon Removers and Carbonaires/UBS reflects an increase in confidence in carbon removal investments and is a hugely positive step forward in reducing the impact of climate change on our environment.”
