Microsoft Makes Massive 500,000 Ton Carbon Removal Purchase From 1PointFive

Microsoft Makes Substantial 500,000 Ton Carbon Removal Purchase From 1PointFive - Carbon Herald

Direct air capture company 1PointFive announced today it has finalized the single largest purchase of carbon dioxide removal (CDR) credits to date. Microsoft will be buying 500,000 metric tons of carbon removals over a period of six years. In line with previous announcements, the price per ton was not disclosed.

With both Microsoft and Google recently revealing that their operations have become more carbon-intensive with the explosive growth of AI, the announcement could herald more demand for credits generated by direct air capture and other carbon removal approaches.

“We are excited about this landmark agreement for Direct Air Capture, which is a result of Microsoft’s leadership in carbon removal and focus on building a more sustainable future,” said Michael Avery, President and General Manager of 1PointFive. “A commitment of this magnitude further demonstrates how one of the world’s largest corporations is integrating scalable Direct Air Capture into its net zero strategy. Energy demand across the technology industry is increasing and we believe Direct Air Capture is uniquely suited to remove residual emissions and further climate goals.”  

The credits will be provided by 1PointFive’s STRATOS facility, which recently announced is 70% complete and is expected to begin operations in mid-2025.

The project has received a $550 million investment from BlackRock Inc on behalf of its clients and has signed deals for carbon removal credits with telecommunications giant AT&T, TD Bank, Rockwell Automation, Inc., Trafigura and others.

Carbon removal to help Microsoft achieve its targets

Despite its recent emissions increase Microsoft has reaffirmed its commitment to becoming carbon negative by 2030 and carbon removal is set to play a big part in that.

“We’re very pleased to announce this deal with 1PointFive, a pioneer in the Direct Air Capture space, which is building the largest DAC project worldwide. To achieve the gigatons of removals needed this century, first-of-a-kind projects like STRATOS are essential to move from pilots to scale. DAC plays an important role in Microsoft’s carbon removal portfolio supporting our broader goal of becoming carbon negative by 2030,” said Brian Marrs, Senior Director for Carbon Removal and Energy at Microsoft.   

The software giant announced the largest carbon removal deal to date, purchasing 3.33 million tons of emissions in a 10-year deal with Swedish energy company Stockholm Exergi. The technology to be utilized there is called BECCS and relies on capturing emissions from sustainable forests grown for power plant fuel.

Today’s announcement coincides with news coming from Google yesterday, that the search engine giant will focus its carbon credit purchases on carbon removal, instead of more nature-based approaches like reforestation which have received intense criticism in the last several years for lacking the necessary transparency and impact.

Read more: Google Stops Its Mass Purchase Of Carbon Credits

1 comment
  1. A short analysis on the carbon intensity of the grid where 1point5 is installing their factory would be interesting: at an intensity in Texas of 0.4tCO2e/MWh, and at a current cost of typically more than 2MWh/tCO2eq, this project would be barely breaking even just in terms of carbon.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts
Translate »
Total
0
Share