Microsoft enters 10-year carbon removal deal with Climeworks

Direct air capture (DAC) technology developer Climeworks AG has struck a deal with Microsoft Corp (NASDAQ:MSFT) that will help the tech giant remove a portion of its carbon dioxide (CO2) emissions.

The 10-year agreement will facilitate the removal of 10,000 tonnes of CO2 emissions from the atmosphere on Microsoft’s behalf, Climeworks announced on Thursday, adding that the arrangement gives it the status of Microsoft's first long-term carbon removal supplier.

Climeworks noted that the contract will support the scale-up of its technology. The company was selected in 2021 by Microsoft for its first carbon removal portfolio as part of its commitment to become carbon negative by 2030 and remove its entire CO2 footprint by 2050.

“Our experience in purchasing renewable energy shows that long-term agreements can provide an essential foundation for society's race to scale new decarbonization technologies,” said Lucas Joppa, Chief Environmental Officer at Microsoft.

Climeworks has developed a technology to capture CO2 directly from the air, which can then either be stored or recycled and used as a raw material. The firm’s modular CO2 collectors can be stacked to build machines of any size that are powered solely by renewable energy or energy-from-waste.

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