Carbon removal specialist Climeworks has become Microsoft’s first ever long-term carbon removal supplier after the partners closed a new 10-year carbon removal offtake agreement.

Announced today (13th July), Climeworks will utilise its pioneering direct air capture (DAC) technology to remove 10,000 tonnes of carbon dioxide (CO2) emissions from the atmosphere on Microsoft’s behalf over the next ten years. 

The deal comes just a year after the technology giant selected Climeworks’ CO2 removal technology for its first carbon removal portfolio, the only DAC solution to be chosen. 

Commenting on the pioneering agreement, Christoph Gebald, Co-CEO, Co-Founder, Climeworks, said, “We are thrilled to sign our second carbon removal contract with Microsoft and work together in the long run.” 

“Long-term commitments like this multi-year agreement are crucial for scaling the DAC industry.” 

Considered a major milestone in the CO2 removal commitments pledged by both companies, the deal marks one of the largest DAC agreements ever signed. 

Having begun operations at its flagship Iceland-based Orca facility in September last year (2021), Climeworks recently started work on its new Mammoth DAC and storage facility. 

A digital rendering of the completed Mammoth DAC facility

A digital rendering of the completed Mammoth DAC facility

Source: Climeworks

Funded through a recent equity raise of US$650m (£530m), the company will scale-up its operations to reach multi-megatonne capacity by 2030 and gigatonne capacity by 2050. 

Read more: Climeworks embarks on ‘Mammoth’ direct air capture project

Also planned for Iceland, Mammoth will initially be capable of capturing 36,000 tonnes of year when fully operational. 

Considered by Lucas Joppa, Chief Environmental Officer, Microsoft, as a ‘nascent but crucial’ industry, DAC could be essential in achieving targets set out by the Intergovernmental Panel on Climate Change (IPCC). 

“Microsoft’s multi-year offtake agreement with Climeworks is an important step towards realising the ‘net’ in net zero,” he said. 

“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.”