Boeing has entered a landmark agreement with U.S.-based climate tech startup Charm Industrial to remove 100,000 metric tons of carbon dioxide from the atmosphere. This is Boeing’s first major carbon-removal contract and one of the largest such deals in the global aviation industry. The agreement, first highlighted by Axios, comes at a time when aviation faces mounting pressure to reduce emissions as sustainable aviation fuel (SAF) continues to remain expensive, scarce, and technologically challenging to scale.
Charm Industrial’s technology converts agricultural and forestry waste into bio-oil via a process known as pyrolysis. This carbon-rich bio-oil is then injected deep underground—typically into depleted oil wells—providing a long-duration, verifiable carbon removal solution with storage times measured in centuries.
The deal carries significant implications on several levels:
1. Aviation’s Urgent Climate Problem
Aviation contributes 2–3% of global CO₂ emissions, but its total climate impact is even higher when considering contrails and non-CO₂ warming effects. Despite efficiency gains and new aircraft designs, absolute emissions continue to rise because air travel demand keeps increasing.
2. Sustainable Aviation Fuel (SAF) Is Not Scaling Fast Enough
According to the International Energy Agency, SAF supplies less than 1% of global jet fuel today. Prices remain 2–10× higher than traditional jet fuel, making widespread adoption economically challenging. As a result, airlines and aircraft manufacturers are turning toward carbon removal as a complementary near-term tool to meet climate commitments.
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3. One of the Sector’s Largest Carbon-Removal Purchases
This 100,000-ton removal agreement places Boeing among the top aviation players making serious commitments to permanent carbon removal. The deal sends a market signal that major aerospace companies are ready to support early climate technologies even before they hit low cost and mass scale.
4. Economic & Technological Impacts
Charm has previously sold 112,000 tons of carbon removal to Frontier (Stripe, Alphabet, Microsoft-backed) at $470 per ton. Their target is to bring costs down to around $50 per ton, a threshold that would change the economics of carbon removal globally. Boeing’s deal helps accelerate this cost curve by giving Charm stable demand and validation.
Boeing’s Perspective
Jeff Shockey, Boeing’s senior strategy executive, emphasized that the company views this partnership as an investment in American innovation and a key step toward its long-term sustainability roadmap. With net-zero targets approaching, Boeing cannot rely solely on SAF, hydrogen, or new aircraft technology. Carbon removal becomes a strategic lever.
Charm Industrial’s Perspective
CEO Peter Reinhardt highlights that Charm’s technology offers co-benefits that extend beyond carbon removal:
- Reduces risk of wildfires by processing agricultural waste
- Lowers particulate matter emissions
- Seals abandoned wells, preventing methane leaks
- Creates new industrial employment opportunities
Charm is rapidly scaling operations, including opening new capacity in Louisiana with a 500,000-ton storage site. Its client list—Google, JPMorgan Chase, Microsoft—positions it as a leader in the carbon removal ecosystem.
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Industry Perspective
Academic studies signal that aviation may need to spend over $60 billion on offsets and removals by 2050 to stay aligned with net-zero commitments. Boeing’s initiative marks a shift from cheap offsets to high-quality, permanent carbon removal, which experts view as essential to meaningful climate progress.
What Boeing Did
- Signed a long-term contract to remove 100,000 tons of atmospheric CO₂
- Partnered with a leading negative-emissions company with proven technology
- Strengthened its sustainability portfolio beyond SAF and aircraft efficiency
- Became one of the earliest large-scale aviation buyers of durable carbon removal
What Charm Industrial Is Doing
- Collecting agricultural and forestry waste
- Converting it into carbon-rich bio-oil
- Pumping this oil into deep underground geological storage
- Expanding operations and targeting dramatic cost reductions
For Boeing
- Scale Purchases: Extend the carbon removal program with multi-year commitments to accelerate cost declines.
- Integrate into Customer Strategy: Allow airlines to co-fund or co-brand removal efforts as part of corporate climate programs.
- Increase Transparency: Publish annual updates on carbon removal verification and climate impact.
For the Aviation Sector
- Adopt Hybrid Decarbonization Pathways: Use a mix of SAF, efficiency, hydrogen R&D, and durable carbon removal.
- Prioritize High-Quality Removals: Shift away from cheap, low-impact offsets.
- Support Policy Incentives: Work with governments to secure tax credits and infrastructure for long-term carbon storage.
For Climate Tech Stakeholders
Accelerate R&D on Bio-Oil Storage and Monitoring
- Invest in Supply Chains that Reduce Wildfire and Waste Risks
- Collaborate with Heavy Emitters (steel, cement, shipping) to diversify demand.
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Boeing’s 100,000-ton carbon removal agreement with Charm Industrial represents a pivotal shift in how the aviation industry approaches decarbonization. With SAF scaling slowly and emissions rising, durable carbon removal emerges as a necessary complement. The deal strengthens the carbon removal market, supports innovative U.S. climate tech, and signals a new era of accountability and long-term planning in aviation. While challenges remain—particularly around costs and large-scale deployment—this partnership marks a meaningful step toward a lower-carbon aviation future.
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