TL;DR - key points from the episode.

• Captured CO₂ has multiple uses and multiple pathways worth considering.
• Comparing two pathways, e-fuels and permanent storage (like BECCs & DAC), storage is likely more cost competitive and brings greater benefits.
• Storage breakthroughs in the Nordics build a strong foundation for a cost-competitive future.
• The voluntary market can help build out the infrastructure alongside state-tenders. Still, policy intervention is necessary to scale.

Comparing optimal technology pathways: e-fuels, storage, and aviation

What’s the smartest way to use CO₂ to reach net zero? Tobias shares insights from a recent analysis showing that storing CO₂ is more cost-effective and scalable than converting it into e-fuels. E-fuels, made from green hydrogen and captured CO₂, are promoted as sustainable aviation fuel (SAF). But according to the report, Direct Air Capture with Storage (DACCS) delivers the same climate benefit with lower energy use and cost. Since CO₂ is a limited resource, prioritising long-term storage leads to greater system-wide impact. Simon and Tobias discuss the implications of SAF blending–the current EU aviation mandate–and alternatives that deliver equal climate benefit.

“We suggest... that this should be allowed as part of the toolbox when aviation and airline companies are obligated to blend in e-fuel. Let them achieve the same climate benefit by capturing CO₂ from the atmosphere and storing it permanently underground—at a much lower cost.”
— Tobias Sørensen, Concito

Challenges and trade-offs for decarbonisation

Public funding is a limited resource. Considering recent public tenders, Simon and Tobias discuss which pathways to prioritise for a cost-effective toolkit. Important factors considered for effectiveness include operating hours, infrastructure life span, and decarbonisation alternatives. A few stand-outs for optimal carbon capture and permanent storage include cement, waste-to-energy using non-fossil sources (BECCS), and biogas. But, considering the reliance on voluntary purchases today, Simon addresses one challenge of private support: companies choosing certifiable credits over technically-efficient ones.

Another challenge lies in sustainable biomass scaling. With demand across multiple sectors (CDR, materials, hydrogen, biodiversity, food), land reallocation becomes crucial. Tobias suggests reducing meat consumption could support strategies like biochar and reforestation.

Nordic CO₂ Storage Developments

With a few notable storage plants online in the Nordics, more are being explored. These early projects are expensive but essential for de-risking value chains and learning-by-doing. Simon and Tobias highlight the role that onshore storage in Denmark could play, as a cost-effective option when compared to todays price ranges.

Voluntary buyers play a crucial early role but are not sufficient to sustain market growth alone. Wide-spread recognition for carbon storage solutions, whether captured at source or removal, as a highly beneficial and effective solution must continue.

“It’s a tool we have in our climate solutions toolbox. And when we do modelling around the scarce resources we have—the limited economic resources—the cost-effectiveness proves that for certain sectors, even something as expensive as DAC is part of the solution.”
—Simon Bager, Co-founder of Klimate

Implications and Recommendations

Beyond increased traction to removal and storage in voluntary markets, stronger policies are needed to funnel climate finance. Today’s EU ETS  and it’s potential inclusion of negative emissions is a step forward to drive adoption. But, current price-levels of removal and storage are misaligned with ETS cost-per-tonne. The market needs contracts for addressing this difference, public-private co-investment, and coordinated procurement strategies.

CDR is not a license to delay reductions but a vital climate tool for hard-to-abate sectors like aviation. Decisions today—on policy, investment, and market design—will shape the effectiveness and equity of future carbon strategies.

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