Microsoft has partnered with Heirloom, for a $600 million direct air capture (DAC) deal, for up to 315,000 metric tons of carbon offsets, over multiple years.
The deal will generate CO2 removal credits at Heirloom’s US commercial deployments, supporting Microsoft‘s carbon-negative goal by 2030 and its goal to remove all CO2 emissions by 2050. It will help to advance Microsoft’s net-zero commitments under the First Movers Coalition, a bipartisan initiative to create early markets for clean technologies.
Microsoft’s support has enabled Heirloom to scale a cost-effective DAC solution, enabling rapid project finance and fueling exponential growth in the renewable energy industry, the company said in a press release.
According to Brian Marrs, Senior Director of Energy and Carbon, Microsoft, the deal aims to reduce the cost of large-scale DAC. This is a crucial step towards becoming carbon-negative by 2030, and aligns with Heirloom’s technical approach. “Heirloom’s technical approach and plan are designed for rapid iteration, aiming to reduce large-scale direct air capture costs to meet the Paris Agreement goals.”
“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,” added Shashank Samala, CEO, Heirloom.
“It is incredibly encouraging to see agreements of this magnitude because corporate buyers, like Microsoft, can unlock a significantly lower cost of capital for Direct Air Capture companies that are seeking to finance infrastructure projects, such as future carbon dioxide removal facilities,” said Robert Keepers, Managing Director, J.P. Morgan Green Economy Banking.
It must be noted that JPMorgan Chase supports carbon removal scaling alongside renewables, and is aiming for $2.5 trillion by 2030.
