What you need to know
Microsoft just announced its long-term deal with Heirloom, a California-based company that specializes in carbon removal from the environment.
The partnership will see Microsoft buy up to 315,000 metric tons of carbon removal.
While Microsoft hasn't disclosed the deal's worth, there are indications that this is one of the biggest deals of its kind and could be approximately $200 million.
Heirloom will help Microsoft capture carbon emissions across two of its latest facilities in the US.
Microsoft is working towards becoming carbon-negative by 2030.
Microsoft recently got into a long-term deal with California-based startup Heirloom. The company will purchase up to 315,000 metric tons of carbon removal. The Wall Street Journal reported this could potentially be one of the biggest deals of its kind, summing up close to $200 million.
Heirloom is a startup that focuses on building "low-cost Direct Air Capture technology that will permanently remove CO2 at a billion-ton scale." The partnership builds on Microsoft's sustainability and environmental conservation goals.
Microsoft aims to attain carbon negative by 2030, which could be possible thanks to its new partnership with the startup. Heirloom's technology hastened the binding process between Limestone and carbon significantly, which could take place over a couple of years but will now be reduced to a few days.
Microsoft’s agreement with Heirloom is another important step in helping build the market for high-quality carbon removal and supports our path to become carbon negative by 2030
Following Microsoft's investment in the carbon removal hub could potentially drive more interest to others, ultimately attracting funding by allowing Heirloom to tap into new opportunities and imminent growth in the sector.
Heirloom's CEO, Shashank Samala, shared the following sentiments regarding the partnership with Microsoft:
"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."
The company is also working closely with other startups in the industry, dubbed direct air capture (DAC) plants. Moreover, it also plays a key role in US President Joe Biden's administration and its bid to develop carbon removal hubs across the country.
Heirloom states that it will assist Microsoft in capturing carbon across two of its latest commercial facilities in the US, including the one based in Louisiana, which was selected for up to $600 million in funding from the Department of Energy.
Admittedly, the operation costs are considerably high, so clustering the plants into hubs could potentially tone down the cost implication. Heirloom is working closely with a direct air capture plant in Louisiana called Climeworks, which is already working with Microsoft to capture carbon dioxide emissions at one of its facilities in Iceland.