Business and Finance

Diamonds from thin air: the search for a carbon-neutral jewel

They are amongst the world’s most dear objects, fashioned billions of years in the past deep beneath the earth’s floor then thrust a whole bunch of kilometres to its crust by volcanic eruptions earlier than their eventual extraction.

But Dale Vince needs to make diamonds out of thin air.

“Mined diamonds I think are very time-limited now — the industry will come to an end, it’s a question of when,” mentioned Vince. “We no longer need to mine the earth to make diamonds, because we can mine the sky.”

Vince, a UK entrepreneur who based inexperienced power group Ecotricity, is one in every of a rising variety of producers of lab-grown diamonds. 

Identical in composition to their naturally fashioned counterparts, manufactured stones are cheaper, posing a problem to the diamond mining business led by De Beers and Russia’s Alrosa. They are bought by main jewelry retailers from Swarovski to Warren Buffett’s Borsheims. 

The conventional extraction of diamonds and the prolonged, energy-intensive course of of producing can each depart a vital carbon footprint — one thing Vince needs to deal with to enchantment to a rising variety of environmentally aware customers.

Lab-grown stones are made both by mimicking pure formation utilizing excessive stress and warmth or by a course of referred to as chemical vapour deposition. With CVD a single-crystal diamond seed is positioned in a chamber crammed with hydrogen and a carbon-containing gasoline comparable to methane, then heated as much as 1,200C. The carbon from the gasoline builds on the seed, forming diamond crystals.

Vince is uncommon in that he even creates his personal methane, a greenhouse gasoline that’s a compound of carbon and hydrogen, by splitting hydrogen from water utilizing electrolysis and taking carbon from the ambiance.

Bar chart of Total gem-quality production (million carats) showing Lab-grown diamond capacity is increasing

Production of lab-grown diamonds has risen from about 2m carats in 2018 to 6m to 7m carats final yr, based on consultancy Bain. That compares with mined manufacturing of 111m carats final yr. 

The elevated scale has helped push down costs, with a polished one carat lab-grown stone roughly a third cheaper than a polished mined diamond, based on Bain.

But whereas producers comparable to Diamond Foundry, a San Francisco start-up backed by movie star Leonardo DiCaprio, use renewable power comparable to hydropower, a rising variety of rivals in international locations comparable to India and China don’t, say analysts.

Last yr 50 per cent to 60 per cent of the world’s lab-grown diamonds had been made in China, based on Bain.

UK entrepreneur Dale Vince is one in every of a rising variety of producers of lab-grown diamonds © Jeff Moore

“The challenge in the synthetic stone sector has not been revealing where their energy is coming from,” mentioned Saleem Ali of the University of Delaware, who’s engaged on a new commonplace to measure the environmental and social efficiency of diamonds.

At the identical time, the mined diamond business has moved to burnish its personal inexperienced credentials. De Beers, a subsidiary of FTSE 100 mining group Anglo American, says it’ll transfer to utilizing hydrogen-powered vehicles and substitute “nearly all” its fossil-fuelled electrical energy by creating devoted wind and solar energy crops.

The firm is eradicating its remaining carbon emissions by injecting carbon dioxide into outdated diamond mines to benefit from the pure propensity of the kimberlite rock through which the stones are discovered to soak up carbon. It can also be contemplating beginning initiatives to assist forest development and farming practices that assist soils take up extra carbon on its giant landholdings.

Diamond production has been decreasing since it peaked in 2017

“The carbon footprint is starting to become an issue of interest for people that buy diamonds,” mentioned Kirsten Hund, head of carbon neutrality at De Beers.

Alrosa, the world’s largest diamond miner, says it’ll spend $466m on enhancing its environmental footprint by 2024, together with utilizing lower-emission mining machines and managing waste. Eighty-six per cent of its electrical energy comes from renewable sources, it says.

Among the greatest challenges for lab-growers is that they lack the monetary firepower of the miners in the case of promoting their merchandise to customers. “Marketing spend, by not only the man-made diamond industry but also the natural diamond industry, is likely what will ultimately determine the success in the long run,” mentioned Paul Zimnisky, a New York-based diamond analyst.

Vince goals to set a single value for his diamonds of about $1,000 a carat due to their environmental credentials. His course of makes use of 40 kilowatt-hours of power to provide one carat, or 4 days’ price of the common UK family’s power use.

But Zimnisky mentioned charging a premium for greener lab-grown diamonds might show difficult as a result of whereas customers need a sustainable product they don’t seem to be essentially keen to pay extra for it.

“If you’re trying to be the lowest-cost producer you don’t care about using hydropower as you aren’t going to get a premium for it,” he mentioned. “You need to be able to sell it at a premium or build it as a brand.”

But Jessica Warch, co-founder of lab-grown jewelry retailer Kimai, mentioned aware customers weren’t solely involved about the local weather, and that the miners couldn’t keep away from the incontrovertible fact that they must dig a large gap in the floor.

“From the perspective of sustainability it isn’t just being carbon neutral,” she mentioned. “There’s much more to it. There’s the environmental and social perspective that’s rarely taken into account when people talk about carbon neutrality, which to us is the most important part.”

Lab-grown diamonds are an identical in composition to their naturally fashioned counterparts © Gianluca De Girolamo

Kimai’s provider of lab-grown diamonds, Israel-based Green Rocks Diamonds, is in the means of being licensed by auditing firm SCS Global Services for its sustainability footprint, based on its chief government Leon Peres.

“It’s very confusing today, there are a lot of companies that are talking about sustainability and being carbon-neutral but they can’t really put proof to the claim,” Peres mentioned. “When you see a new product coming into the market it’s kind of a free for all — there are no rules or regulations. But now you’re seeing consumers asking questions, the same questions they are asking about natural diamonds: what is the source?”

Amish Shah, of lab-grown producer ALTR Diamonds, believes the lab-grown business will coalesce round new sustainability requirements this yr. He says his manufacturing services in India can simply transfer to utilizing solar energy and already use cow dung as the supply of methane.

“I believe in the next 12 to 24 months we will see a major shift in consumer mindset which will force this industry to ensure that everything that is passing through is a low-carbon product,” he mentioned. “And the lab-grown guys will push ahead.”

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