Climate solution provider Heirloom and tech giant Microsoft have just announced what is currently one of the largest carbon removal deals.
According to the contract signed by both parties, Microsoft will buy up to 315,000 metric tons of CO2 removal over several years from Heirloom.
Heirloom specializes in carbon dioxide removal (CDR) via Direct Air Capture or DAC technology, which essentially sucks residual CO2 emissions directly from ambient air.
The massive purchase is set to help Heirloom significantly scale its operations and reduce the cost of its DAC facilities and, therefore, the cost of carbon removal per ton.
The purchased carbon removal credits are set to be generated by the company’s two future commercial facilities.
Earlier, the company was selected by the US Department of Energy for up to $600 million in matching funding for its Project Cypress in Louisiana – a DAC hub to be developed together with Climeworks, Battelle, and Gulf Coast Sequestration.
The DAC hub was one of two to be approved for funding.
Relevant: Climeworks, Heirloom And Battelle Apply For $500M US Grant For Direct Air Capture
The newly inked deal will not only help scale DAC and promote the removal of larger quantities of CO2 from the atmosphere, but will also help Microsoft reach its goal of achieving carbon negativity by 2030 and doing away with all emissions it has ever produced by mid-century.
“Microsoft has been an incredible supporter of Heirloom, helping us scale one of the world’s most cost-effective Direct Air Capture solutions. Bankable agreements of this magnitude enable Heirloom to raise project finance for our rapid scale-up, fueling exponential growth like what we’ve seen in the renewable energy industry,” said Shashank Samala, CEO of Heirloom.
Furthermore, the deal also has the potential of positioning the United States at the forefront of global climate action by bringing together domestic buyers and sellers of carbon removal.
Read more: U.S. Awards $1.2 Billion For Developing Direct Air Capture Hubs In Texas And Louisiana
