JPMorgan Commits $20 Million Debt and 61,500 Tonnes to Charm Industrial

JPMorganChase has signed a second carbon removal offtake deal with San Francisco-based Charm Industrial, purchasing 61,500 tonnes of carbon dioxide removal credits from Charm's US bio-oil sequestration projects. The bank has also extended a $20 million venture debt facility to support Charm's operational expansion in Colorado.

Charm Industrial, founded in 2021 as a Yale spinout, converts agricultural residue and forest fire management biomass into bio-oil through pyrolysis and pumps it underground in EPA-regulated wells, where it permanently solidifies. The company recently expanded its portfolio to include biochar as an additional carbon removal pathway. The new deal brings JPMorganChase's total carbon removal commitment with Charm to 90,000 tonnes, making it one of the largest bilateral bio-oil carbon removal offtakes in the industry. The venture debt facility will be used to expand commercial operations in Colorado and scale the processing of unsaleable forest residues from wildfire mitigation projects.

The dual structure of the agreement—combining a carbon credit offtake with a debt facility—reflects a maturing approach to carbon removal financing, where leading buyers are beginning to extend beyond purchase agreements to provide growth capital to suppliers they trust. JPMorganChase has built a substantial carbon removal portfolio this year, including deals for 85,000 tonnes with Anew Climate and Aurora Sustainable Lands, and 60,000 tonnes with Graphyte. The bank's commitment to Charm signals its conviction that bio-oil sequestration is a credible and scalable pathway for durable carbon removal.

The $20 million debt facility from JPMorgan Commercial Banking provides Charm with non-dilutive capital to accelerate capacity growth without requiring further equity fundraising. This type of financing arrangement is expected to become more common in the carbon removal sector as projects mature from early-stage demonstration to commercial operation, making them eligible for debt rather than purely equity or grant funding. JPMorganChase's expanded relationship with Charm—a return customer with a proven delivery track record—also illustrates how corporate buyers are concentrating repeat purchases with suppliers that demonstrate high-quality, measurable and permanent carbon removal outcomes.

Key figure — $20 million venture debt facility extended by JPMorganChase to Charm Industrial