Nori (company)

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Nori logo Nori Logo.png
Nori logo

Nori Inc. is a technology startup based in Seattle, Washington. [1] The company is building financial infrastructures to allow carbon removal projects to measure and get economic revenues from their activity.[ citation needed ] By doing so, Nori aims to establish a universal market-driven commodity price on carbon removal. [2] Nori is focused on soil-carbon sequestration and pays farmers who adopt regenerative agriculture practices which may contribute to carbon sequestration. [3] [4] [5] [6]

Contents

History and funding

Nori was founded in 2017 by Paul Gambill. [7]

In 2018, Nori raised $145,548 on Republic's crowdfunding platform when its CEO, Gambill pitched Nori on an episode of Meet the Drapers, starring venture capitalist Tim Draper and his family. [8] [9]

In 2020, Nori raised $4 million from several investors. [10]

In February, 2022 Nori raised $7 million in a Series A round led by M13 and Toyota Ventures. [7]

In April 2023, Nori laid off 10 employees due to "changing market conditions." [11] Several months later, the company hired Matt Trudeau as its new CEO and raised an additional $6.25 million in funding. Gambill then transitioned to the title of Chief Product Officer [12] and ended his tenure with the company in March 2024, although staying as a member of its board. [13]

Products and services

Nori has created a platform where carbon removal suppliers can get paid by carbon removal buyers. [14] Nori specifically focuses on the growth of financial incentives and the supply of carbon removal offsets, not reduction or avoidance offsets. [15]

Nori sells the Regenerative Tonne™ (formerly "Nori Carbon Removal Tonnes” or “NRTs”) on its trading platform to represent one tonne of carbon dioxide (CO2) that has been removed from the atmosphere into for a minimum of 10 years. [16] Nori's RTs are generated from agricultural projects that can store carbon dioxide in soil as of April 2021. [17] These soil projects are broadly called regenerative agriculture practices. Nori is developing a financial instrument to assist growers in enhancing carbon dioxide sequestration in their soils, with potential benefits including climate change mitigation, drought tolerance, reduced surface runoff pollution, and improved soil health. [18]

Nori partners with companies that make carbon quantification tools (CQTs) in order to model how much carbon has been removed[ clarification needed ]. In the case of farmlands, these models work by comparing farmers' new sustainable practices to their previous farming methods. Nori partners with Soil Metrics, which uses a USDA-approved model to run thousands of scenarios to determine how much carbon a farmer has stored in their soils. [3] [19]

Nori is in the process of developing an API for carbon removal[ clarification needed ] that integrates into platforms and applications.[ clarification needed ] [10]

In December 2023, Nori launched the Net Zero Tonne™, a blended credit that mixes soil carbon sequestration with durable removal like direct air capture. [20] The timeline of each NZT overlaps the two carbon storage methods so that immediate carbon capture in soil will last until after the permanent carbon removal can be delivered for each credit.

Early adopters

In early 2020, Maryland farmer Trey Hill became the first seller in Nori's marketplace. He was paid over $115,000 for practices that, over the preceding few years, had sequestered over 8,000 tons of carbon in the soil. Buyers included Shopify Inc., Arizona State University, and individuals looking to remove carbon. [3]

In November 2020, Iowa farmer Kelly Garrett sold 5,000 carbon removals through Nori's carbon removal marketplace platform and Locus Agricultural Solutions. The buyer of the carbon credits was Shopify Inc, who used the carbon removal credits to help negate emissions from transporting goods sold on the Black Friday/Cyber Monday weekend. [21] [4]

Related Research Articles

<span class="mw-page-title-main">Carbon sink</span> Reservoir absorbing more carbon from, than emitting to, the air

A carbon sink is a natural or artificial process that "removes a greenhouse gas, an aerosol or a precursor of a greenhouse gas from the atmosphere". These sinks form an important part of the natural carbon cycle. An overarching term is carbon pool, which is all the places where carbon on Earth can be, i.e. the atmosphere, oceans, soil, plants, and so forth. A carbon sink is a type of carbon pool that has the capability to take up more carbon from the atmosphere than it releases.

<span class="mw-page-title-main">No-till farming</span> Agricultural method

No-till farming is an agricultural technique for growing crops or pasture without disturbing the soil through tillage. No-till farming decreases the amount of soil erosion tillage causes in certain soils, especially in sandy and dry soils on sloping terrain. Other possible benefits include an increase in the amount of water that infiltrates into the soil, soil retention of organic matter, and nutrient cycling. These methods may increase the amount and variety of life in and on the soil. While conventional no-tillage systems use herbicides to control weeds, organic systems use a combination of strategies, such as planting cover crops as mulch to suppress weeds.

The Chicago Climate Exchange(CCX) was a voluntary, legally binding greenhouse gas reduction and trading system for emission sources and offset projects in North America and Brazil.

<span class="mw-page-title-main">Afforestation</span> Establishment of trees where there were none previously

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<span class="mw-page-title-main">Carbon offsets and credits</span> Carbon dioxide reduction scheme

Carbon offsetting is a carbon trading mechanism that allows entities such as governments or businesses to compensate for (i.e. “offset”) their greenhouse gas emissions. It works by supporting projects that reduce, avoid, or remove emissions elsewhere. In other words, carbon offsets work by offsetting emissions through investments in emission reduction projects. When an entity invests in a carbon offsetting program, it receives carbon credits. These "tokens" are then used to account for net climate benefits from one entity to another. A carbon credit or offset credit can be bought or sold after certification by a government or independent certification body. One carbon offset or credit represents a reduction, avoidance or removal of one tonne of carbon dioxide or its carbon dioxide-equivalent (CO2e).

<span class="mw-page-title-main">Carbon sequestration</span> Storing carbon in a carbon pool (natural as well as enhanced or artificial processes)

Carbon sequestration is the process of storing carbon in a carbon pool. It plays a crucial role in mitigating climate change by reducing the amount of carbon dioxide in the atmosphere. There are two main types of carbon sequestration: biologic and geologic. Biologic carbon sequestration is a naturally occurring process as part of the carbon cycle. Humans can enhance it through deliberate actions and use of technology. Carbon dioxide is naturally captured from the atmosphere through biological, chemical, and physical processes. These processes can be accelerated for example through changes in land use and agricultural practices, called carbon farming. Artificial processes have also been devised to produce similar effects. This approach is called carbon capture and storage. It involves using technology to capture and sequester (store) CO
2
that is produced from human activities underground or under the sea bed.

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Biochar is the lightweight black residue, made of carbon and ashes, remaining after the pyrolysis of biomass, and is a form of charcoal. Biochar is defined by the International Biochar Initiative as "the solid material obtained from the thermochemical conversion of biomass in an oxygen-limited environment". Biochar is a stable solid that is rich in pyrogenic carbon and can endure in soil for thousands of years.

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<span class="mw-page-title-main">Carbon dioxide removal</span> Removal of atmospheric carbon dioxide through human activity

Carbon dioxide removal (CDR) is a process in which carbon dioxide is removed from the atmosphere by deliberate human activities and durably stored in geological, terrestrial, or ocean reservoirs, or in products. This process is also known as carbon removal, greenhouse gas removal or negative emissions. CDR is more and more often integrated into climate policy, as an element of climate change mitigation strategies. Achieving net zero emissions will require first and foremost deep and sustained cuts in emissions, and then—in addition—the use of CDR. In the future, CDR may be able to counterbalance emissions that are technically difficult to eliminate, such as some agricultural and industrial emissions.

Enhanced weathering, also termed ocean alkalinity enhancement when proposed for carbon credit systems, is a process that aims to accelerate the natural weathering by spreading finely ground silicate rock, such as basalt, onto surfaces which speeds up chemical reactions between rocks, water, and air. It also removes carbon dioxide from the atmosphere, permanently storing it in solid carbonate minerals or ocean alkalinity. The latter also slows ocean acidification.

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<span class="mw-page-title-main">Regenerative agriculture</span> Conservation and rehabilitation approach to food and farming systems

Regenerative agriculture is a conservation and rehabilitation approach to food and farming systems. It focuses on topsoil regeneration, increasing biodiversity, improving the water cycle, enhancing ecosystem services, supporting biosequestration, increasing resilience to climate change, and strengthening the health and vitality of farm soil.

<span class="mw-page-title-main">Deforestation and climate change</span> Relationship between deforestation and global warming

Deforestation is a primary contributor to climate change, and climate change affects the health of forests. Land use change, especially in the form of deforestation, is the second largest source of carbon dioxide emissions from human activities, after the burning of fossil fuels. Greenhouse gases are emitted from deforestation during the burning of forest biomass and decomposition of remaining plant material and soil carbon. Global models and national greenhouse gas inventories give similar results for deforestation emissions. As of 2019, deforestation is responsible for about 11% of global greenhouse gas emissions. Carbon emissions from tropical deforestation are accelerating.

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Carbon farming is a set of agricultural methods that aim to store carbon in the soil, crop roots, wood and leaves. The technical term for this is carbon sequestration. The overall goal of carbon farming is to create a net loss of carbon from the atmosphere. This is done by increasing the rate at which carbon is sequestered into soil and plant material. One option is to increase the soil's organic matter content. This can also aid plant growth, improve soil water retention capacity and reduce fertilizer use. Sustainable forest management is another tool that is used in carbon farming. Carbon farming is one component of climate-smart agriculture. It is also one of the methods for carbon dioxide removal (CDR).

<span class="mw-page-title-main">Direct air capture</span> Method of carbon capture from carbon dioxide in air

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Carbon180 is a nonprofit environmental organization headquartered in Washington, D.C. In 2015, Giana Amador and Noah Deich co-founded the organization at the University of California, Berkeley. Carbon180 advocates for carbon dioxide removal solutions, including, but not limited to, direct air capture (DAC), forest carbon removal, and agricultural soil carbon. Carbon180 engages with lawmakers, academic and science-based institutions, and businesses to fund and deploy carbon removal technologies and methods.

Regenerative cacao is defined as cacao that is produced on a farm that employs regenerative agriculture and agroforestry methods. It is most closely associated with the Ecuadorian chocolate company To’ak, the organic food supplier Navitas, the rainforest conservation organization TMA, and the social-agricultural enterprise Terra Genesis. Cacao is the raw material that is used to produce chocolate.

Biochar carbon removal (BCR) is a negative emissions technology. It involves the production of biochar through pyrolysis of residual biomass and the subsequent application of the biochar in soils or durable materials. The carbon dioxide sequestered by the plants used for the biochar production is therewith stored for several hundreds of years, which creates carbon sinks.

References

  1. https://nori.com/
  2. Hahn, Jennifer (June 15, 2021). "Nori aims to create "financial incentive for pulling carbon out of the air" says CEO Paul Gambill". Dezeen.
  3. 1 2 3 Popkin, Gabriel (Jan 22, 2021). "Planting crops — and carbon, too". The Washington Post.
  4. 1 2 Bunge, Jacob (Dec 23, 2020). "Agriculture Industry Bets on Carbon as a New Cash Crop". The Wall Street Journal.
  5. Petrova, Magdalena (June 25, 2021). "These farming techniques can help trap carbon dioxide in the soil and make farmers an extra buck". CNBC.
  6. Johnson and Kempe, Nathanael, Ysabelle (2021-07-07). "The US is about to go all-in on paying farmers and foresters to trap carbon". Grist. Retrieved 2021-07-09.{{cite web}}: CS1 maint: multiple names: authors list (link)
  7. 1 2 Kamps, Haje Jan (2022-02-24). "Immune to irony, Nori puts a carbon market on the blockchain". TechCrunch. Retrieved 2023-10-24.
  8. "Nori is a marketplace for reversing climate change". Republic. Jan 1, 2019.
  9. "Nori's pitch on Meet The Drapers". Youtube. Nov 28, 2018.
  10. 1 2 Shieber, Jonathan (Sep 24, 2020). "Nori is pitching carbon trading … on the blockchain!". Techcrunch.
  11. Schlosser, Kurt (April 10, 2023). "Carbon removal startup Nori lays off 10 employees, citing market concerns". Geekwire.
  12. Stiffler, Lisa (June 6, 2023). "Carbon removal startup Nori raises $6.25M from Toyota and others; names new CEO". Geekwire.
  13. "Paul Gambill on LinkedIn: Today was my last day working full-time at Nori. A little over a year ago,… | 37 comments". www.linkedin.com. Retrieved 2024-04-05.
  14. Dorning, Mike (April 20, 2021). "The carbon market gold rush in American agriculture". Bloomberg.
  15. Siegel, RP (Oct 22, 2019). "Can this company build a better carbon offset?". Grist.
  16. Griekspoor, P.J. (Feb 12, 2019). "Nori is developing a trading platform for Carbon Removal Certificates". FarmProgress.
  17. "The carbon question: Making global carbon markets work for farmers". AgFunder News. April 21, 2021.
  18. Popkin, Gabriel (March 31, 2020). "Can 'Carbon Smart' Farming Play a Key Role in the Climate Fight?". Yale Environment 360.
  19. Abram, Mike (June 16, 2021). "6 companies offering carbon-based payments to arable farmers". Farmers Weekly.
  20. Trendafilova, Petya (2023-12-11). "Nori Launches Nori Net Zero Tonne™ - The First Hybrid Carbon Removal Credit". Carbon Herald. Retrieved 2024-04-05.
  21. Vasquez, Justina (Oct 28, 2020). "Iowa farmer finds fortune in selling carbon credits to Shopify". Bloomberg.