Fw: CDRfyi 2024 year in review

[Greg Rau]

https://www.cdr.fyi/blog/2024-year-in-review

• Growth: The CDR market grew 78% in 2024 with the total purchased volume reaching almost 8 million tonnes. However, it is still highly concentrated, with 80% of purchases coming from Microsoft, Google, Stripe, and Frontier buyers​.
• Delivery: 318.6K tonnes of Durable CDR were delivered, a 120% increase from 2023​. The delivery-to-booking ratio remains low at 4.4%, but this is expected at this stage​.
• Investment: $836M of equity capital was invested into Durable CDR companies in 2024, a 30% decline from 2023​. However, the number of investments and average size of the investments both increased when we exclude outlier transactions in 2022 and 2023.
• Warning Signs: The number of unique purchasers grew only 7% and first-time buyers declined 18%. Repeat buyer volume grew 95% and accounted for 91% of purchased volume; new buy volume remained essentially flat compared to 2023, and represented only 9% of purchased volume.
• Challenges: The number of suppliers increased 16%, but consolidation is likely without an influx of new buyers. The sector is at risk of premature price-driven competition, potentially harming high-cost but innovative methods​. More voluntary buyers and favorable policy are required for the market to continue growing.