bp buys majority stake in Finite Carbon
bp has acquired a majority stake in carbon offset developer Finite Carbon, building on its existing interest in the company.
Finite Carbon is the largest developer of forest carbon offsets in the US. It now has 50 carbon projects on three million acres which have registered more than 70 million independently-verified offsets and generated more than $500 million in revenue for landowners.
bp will bring the firm into its in-house business accelerator, bp Launchpad. Together with bp’s additional investment, this is expected to bolster Finite Carbon’s expansion, including into new geographical markets.
David Eyton, bp's Executive Vice President of Innovation and Engineering, said Finite Carbon has the potential to build a global platform for managing and financing natural climate solutions (NCS).
"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."
Founded in 2009, Finite Carbon identifies and develops projects that enable landowners to generate revenue from the protection, restoration, and sustainable management of forests. These actions increase carbon stored in forests and generate carbon offsets that are verified against industry-recognized standards and can be traded on markets.
bp invested $5 million in Finite Resources, the parent of Finite Carbon, in 2019, according to Bloomberg.
Sean Carney, founder of Finite Carbon added: “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. 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."
Earlier this year, bp announced its ambition to become a net zero emissions company by 2050. In September, bp and Microsoft agreed to collaborate as strategic partners to further digital transformation in energy systems and advance net zero carbon goals of both companies.
Last month, bp and Ørsted signed a Letter of Intent to develop a project for industrial-scale production of green hydrogen (click here).
Sealaska, a forest carbon offset project in Southeast Alaska developed by Finite Carbon, is pictured.