Microsoft and Climeworks Sign Carbon Removal Agreement
Microsoft Corporation
Microsoft and Climeworks have inked a new carbon removal offtake deal for 10 years. Long-term commitments are necessary for the growth of the carbon removal sector. Multi-year agreements significantly encourage long-term financing initiatives for the direct air capture field (DAC).
Microsoft declared in 2020 that it would become carbon negative by 2030 and eliminate all of its previous CO2 emissions by 2050.
One year later, Climeworks' carbon dioxide removal was the sole DAC solution chosen by Microsoft for its first carbon removal portfolio after completing a rigorous examination.
Today, Climeworks is pleased to expand its partnership with Microsoft by becoming the company's first long-term carbon removal supplier.
Climeworks will permanently remove 10,000 tonnes of CO2 emissions from the atmosphere on behalf of Microsoft as part of a 10-year carbon removal offtake deal between the two companies.
This second and prospective commitment is one of the largest DAC agreements ever signed and demonstrates Microsoft's confidence in Climeworks' technology and scalability.
Christoph Gebald, co-CEO and co-founder of Climeworks, said:
"We are thrilled to sign our second carbon removal contract with Microsoft and look forward to working together in the long run. Long-term commitments like this multi-year agreement are crucial for scaling the DAC industry because the guaranteed demand catalyses financing of our infrastructure and consequently accelerates the development of the required ecosystem for scaling DAC."
Lucas Joppa, Chief Environmental Officer at Microsoft, commented:
"Microsoft’s multi-year offtake agreement with Climeworks is an important step towards realising the ‘net’ in net zero. Our experience in purchasing renewable energy shows that long-term agreements can provide an essential foundation for society's race to scale new decarbonisation technologies. Paired with Microsoft’s Climate Innovation Fund investment in Climeworks’ direct air capture plant, this agreement with Climeworks can help kickstart the commercial and technical progress in a nascent but crucial industry to achieve IPCC targets.”
Source: Climeworks
