FedEx Bets on Nature-Based Carbon Capture Solutions Pay Dividends

As global efforts to address climate change intensify, carbon dioxide removal (CDR) has emerged as a critical component of achieving net-zero emissions targets. However, not all carbon capture approaches are created equal. Understanding the fundamental differences between natural and durable carbon capture methods is essential for developing effective climate strategies, particularly as innovative companies like Mati Carbon demonstrate the potential of enhanced rock weathering technologies.

Collaboration in Natural Carbon Capture

At the 2024 International Corporate Citizenship Conference, FedEx took the main stage to highlight its efforts toward carbon neutrality, with a special focus on solving for emissions from aviation. FedEx Chairman, Fred Smith explained how, in 2021, he turned to his alma mater, Yale University, and its School of the Environment, looking to support research, expertise, and ultimately solutions—not just for FedEx, but for the world. FedEx pledged $100 million to help establish the Yale Center for Natural Carbon Capture (YCNCC), a group now exploring various natural processes that can capture carbon from the air and store it in the environment (in soil, oceans, rocks, and sediments), along with ways to speed up these processes. 

Through the YCNCC, FedEx's commitment to advancing climate solutions is empowering trailblazers like Mati Carbon, recent winner of the $50 million XPRIZE for carbon removal.  Mati’s enhanced rock weathering (ERW) technology involves spreading finely crushed basalt rock across agricultural lands to speed up the natural process of capturing CO2 and storing it securely. This method not only benefits the environment but also offers substantial advantages for smallholder farmers in the Global South—improving soil health, boosting crop yields, and opening new revenue opportunities.

“Collaboration and innovation are cornerstones of the FedEx sustainability strategy,” said Karen Ellis, the chief sustainability officer and vice president of environmental affairs at FedEx. “FedEx was instrumental in establishing the YCNCC, recognizing that Yale’s world-class scientific research would help power and equip innovators to develop, test, and grow the vital solutions needed to remove carbon from the atmosphere. Mati’s recognition by XPRIZE provides further evidence that enhanced rock weathering is a promising technology that could deliver for both planet and communities at scale.”

Enhanced Rock Weathering: Accelerating Nature’s Timeline

The market distinguishes between two fundamental carbon removal approaches: durable solutions that store carbon for centuries to millennia with high measurement certainty but currently higher costs ($250-$2,000+ per ton), and nature-based solutions that leverage natural ecosystems and offer variable permanence, but lower costs ($50-$250 per ton).

Enhanced rock weathering represents this second type of approach. It is a particularly promising nature-based carbon capture strategy that builds on a natural function of our climate system, where rocks draw CO₂ out of the atmosphere. The ERW process involves spreading crushed silicate rocks on agricultural land, where they capture carbon from the atmosphere permanently through natural weathering reactions. As one industry participant noted, “it is what the earth wants to do."

But ERW shrinks the timeline required, down from tens of thousands of years to mere decades.  It also delivers a host of co-benefits, including boosts in soil fertility and help mitigating ocean acidification.

Mati Carbon: Pioneering Scalable ERW Solutions

Mati Carbon exemplifies the potential of enhanced rock weathering technology applied at scale. Originally founded as Sestera, a direct air capture company, Mati pivoted to enhanced rock weathering three years ago, after determining that direct air capture was "highly energy intensive" and constrained by renewable energy availability.

Today, as a Delaware-registered Public Benefit Corporation controlled by a US 501(c)(3), Mati has developed a comprehensive approach to basalt-based ERW specifically designed for smallholder rice paddy farms. Their process durably removes atmospheric CO₂ while simultaneously adding essential nutrients including silicon, calcium, and magnesium to degraded soils, creating meaningful co-benefits for farmers. The company has delivered around 150,000-170,000 tons of material to date, with ambitious plans to deploy approximately 300,000 tons of rock dust in 2025, equivalent to roughly 75,000 tons of carbon removal.

The company has addressed key implementation challenges through innovative technological solutions. Mati's software platform manages the logistical complexities of working with thousands of smallholder farmers in remote areas across India, Zambia, and Tanzania, with plans to scale to "100 million farmers in the next two decades" and expand operations to 30-50 countries to reach megaton scale. Their partnership with Yale University has enabled development of robust monitoring and verification methodologies that include novel soil monitoring techniques coupled with sophisticated mass-balance calculations to accurately quantify CO₂ removal.

Unlike many carbon removal technologies, enhanced rock weathering already achieves good profit margins because it utilizes rock crushing byproducts that would otherwise be waste. What’s more, enhanced rock weathering has possible co-benefits for improved food and soil security, and reduced ocean acidification. Initial trials show approximately 20% improvement in crop productivity, reduced diseases, and increased water retention capacity, indicating that durable carbon capture could simultaneously address climate and food security challenges. With approximately 95 team members and plans to double that number within six months, Mati is positioning itself to become a "megaton scale carbon remover by the end of this decade," targeting 1 million tons of CO₂ removal by 2030.

Market Dynamics and Technology Competition

The carbon removal market is experiencing rapid growth, with delivered credits expanding at approximately 120% annually. Yet it still faces significant challenges in scaling beyond early adopters. Microsoft dominates purchasing with over 20 million tons acquired cumulatively, representing more than 75% of all carbon credits purchased globally, while the rest of the market accounts for approximately 6 million tons. This concentration highlights both the market's potential and its need for diversification among buyers.

The Path Forward

In order to achieve our climate goals, we need to both decarbonize and accelerate carbon removal.  The scale of CDR needed to achieve global climate goals requires portfolio approaches spanning from 5 to 16 billion metric tons per year, globally, by 2050.

The rapid market evolution demonstrates both the potential and challenges ahead. With delivered carbon removal growing at 120% annually but still concentrated among few buyers, the industry faces critical scaling challenges. However, companies like Mati Carbon demonstrate that enhanced rock weathering can bridge the gap between natural and technological approaches, offering permanent carbon storage while delivering immediate agricultural benefits and achieving economic viability through efficient use of industrial byproducts.

As the field advances, integrating diverse CDR approaches will be essential for achieving the scale and permanence required to address the climate crisis effectively.