DAC BECCS Biochar ERW Prepayment requirement21Medium Low Low High Some buyers support for prepayment models to help fund project set-up and operation costs for newer entities. BECCS developers typically have corporate backing and access to capital for infrastructure, reducing reliance on buyer prepayments.More established companies with balance sheet support, so less need for prepayments.Requires buyer involvement in funding to deploy large quantities of minerals (rocks). Volume commitment/delivery schedule Commitment details Payment on delivery. Some suppliers also require some level of prepayments.Payment on delivery. Payment on delivery or some level of prepayments will unlock more attractive terms.Payment on delivery or some level of prepayments will unlock more attractive terms and enable opex financing. Average volume in contract Higher Higher Ranged Ranged % of output suppliers willing to secure in offtakeLow High High Varies (buyers drive deployment) Projects often sell smaller volumes upfront due to uncertainties in scaling and technology development.Established large-scale operations and confidence in volume deliveries allow for higher-volume commitments.High visibility on production capacity due to mature technology, allowing for higher-volume commitments.Volume commitment varies due to buyer-driven deployment model and demand fluctuations. De-risking measures Performance guarantees22Typically not included; however, limited dataset. Price flexibility (price review mechanisms)Present Present Absent Absent Price reviews allow adjustments based on technology improvements and market inflation to manage financial risk.Similar to DAC, price reviews help adjust for inflation and operational improvements.Biochar market operates with stable prices due to maturity and demand, reducing the need for price reviews.Pricing is less flexible at this stage due to early development. Hedging No meaningful hedging differences across pathways; CDR projects do not employ extensive hedging mechanisms due to nascency of projects and lack of established carbon markets or predictable cost structures. Insurance Insurance for carbon removal is in its infancy and has been applied to a limited amount of use cases. Coverage will vary by regulatory landscape. Force majeure clausesGenerally similar across pathways and include severe weather events, but likelihood to invoke will vary based on operational flexibility and location dependency. Impact of force majeure events Low Low Moderate High Large, capital-intensive facilities are highly location- dependent and costly to relocate or restart.Projects are more flexible and can recover faster due to distributed sites.Severe weather events can render large areas of land unusable, significantly affecting biomass or mineral-spreading operations. Exit clauses Financial hardship or bankruptcy; non-performance; force majeure; condition precedent not met. Remedy periods Longer: up to one year Longer: up to one year Shorter: 3–6 months Medium: up to 6 months More capital-intensive and riskier projects with longer milestones (e.g. permitting) create longer remedy periods.Similar to DAC due to capital intensity and permitting delays.Shorter contracts allow quicker production with less need for long remedy periods.Some flexibility needed due to uncertainties in deployment, but less risky than DAC or BECCS. Carbon Dioxide Removal Technologies: Market Overview and Offtake 27

Carbon Dioxide Removal Technologies 2026