Microsoft to Purchase 315,000 Metric Tons of CO2 removal from Heirloom
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Microsoft’s purchase unlocks key project financing mechanism to dramatically scale and reduce the cost of Heirloom’s Direct Air Capture facilities
Microsoft has signed a multi-year deal to purchase up to 315,000 metric tons of carbon dioxide removal from Heirloom, a Direct Air Capture company. The deal is one of the largest carbon dioxide removal deals to date, and it is a major milestone for the development of carbon removal technology.
This deal follows Heirloom’s DAC Hub selection by the US Department of Energy for up to $600 million in matching funding. Project Cypress, to be located in southwestern Louisiana, was one of just two hubs to qualify for the highest levels of funding.
“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,” said Brian Marrs, Senior Director of Energy and Carbon at Microsoft.
Heirloom’s Direct Air Capture technology uses the natural properties of limestone to remove CO2 from the atmosphere and permanently store it in a range of ways, including in concrete. The company’s technology is one of the most cost-effective Direct Air Capture solutions available, and it has the potential to scale up to gigaton-scale.
“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.
“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.
The deal with Microsoft will help Heirloom to finance the construction of new Direct Air Capture facilities and accelerate the development of the carbon removal market. It is also a major vote of confidence in Heirloom’s technology and its ability to play a significant role in addressing climate change.
Microsoft has set a goal of being carbon negative by 2030, and this deal is a key part of its strategy to achieve that goal. The company is also investing in other climate change mitigation technologies, such as renewable energy and energy efficiency.
The deal between Microsoft and Heirloom is a major step forward in the fight against climate change. It shows that corporate buyers are willing to invest in carbon removal, and it provides a much-needed boost to the development of this emerging technology.