Peter Reinhardt spent the last decade as CEO Section Helping build the customer data platform, selling it to Twilio for $3.2 billion. Today, Reinhardt announced that he is leaving Twilio to become full-time CEO. Charm Industrial, a carbon mitigation startup that he co-founded in 2018.
Reinhardt expressed mixed feelings about leaving, calling it bitterly sweet, but he believes working on the global climate crisis is something that deserves his attention now. According to the company, the Twilio segment’s go-to-market leader Steve DeVito will take over for them.
Reinhardt says that Charm’s business began to boom last year after his co-founder, Chief Scientist Sean Meehan, had some major breakthroughs and realized it was time to devote his energies fully to the venture.
“My co-founder Sean realized that we could convert biomass to a liquid and it solved a whole bunch of economic logistics issues around how to make biomass accessible,” Reinhardt told me.
“And then the other thing Sean had was another breakthrough, which was that we could pump that liquid biomass underground and effectively put the oil back where it came from. And to put the oil back underground. For, the idea of pumping liquid plants, originally went back underground [was key],” Reinhardt explained.
We have seen biodiesel fuels produced from vegetable oil or cooking grease to run specially equipped vehicles for years. John Schiber, a former reporter at Nerdshala who now works as a venture partner and editor in chief, a firm that invests in climate startups, says it is taking the opposite approach. “It is biodiesel production, but instead of burning the fuel, they isolate it in a sustainable way,” he said.
The company reports that it is off to a good start, removing more than 5400 tons of carbon dioxide from the atmosphere using this method in 2021, its first full year in operation. It believes this makes it the most successful and largest carbon mitigation project in history, but even with that kind of success, the startup recognizes that this is just the beginning.
“And yet… 5,000 tons is a drop in the bucket. We are in the race to remove billions of tons of carbon dioxide per year (according to the IPCC model.) We need multiple ways to remove carbon to meet our climate goals. will require scaling at all breakneck speeds,” Reinhardt wrote. company blog In October.
Schiber says that Charm Industrial is actually part of a group of startups trying to attack this problem. “All [of these companies are] Very promising parts of an emerging range of carbon capture, sequestration and utilization. The solution is to do much more than replace fossil fuels. We have to clean up the mess we’ve created in the air,” Schieber told me.
The company generates revenue by paying customers in the form of carbon offsets to cancel their carbon use in the supply chain. Stripe was the startup’s first customer.
“Stripe really led the way here with the carbon dioxide removal RFP. And so they became our first customer. They’ve bought a few hundred tons of permanent removal. And they also went in and bought from a lot of other interesting new technologies that came with it. Do permanent carbon removal too,” Reinhardt told me.
Other companies that have bought this approach along with Charm Industrial include Shopify, Zendesk, Block (formerly Square) and Microsoft.
pitchbook report Allure has raised more than $25 million to date, a number he contested, only to confirm that the company has raised an A round.