Microsoft has announced a 10-year offtake agreement with Deep Sky to purchase direct air-capture (DAC) carbon removal credits to support its sustainability goals.
Alongside the Royal Bank of Canada, the tech giant agreed to purchase 10,000 tons of CO2 removal services over the specified period.
They represent the first carbon removal credits sold from a technology-agnostic DAC project worldwide.
“We need to prove that this stuff works. We need to prove that we can build the projects we say we're going to build, and we have to deliver credits to the customers who have, over the last couple of years, been making commitments to future supply,” said Damien Steel, CEO of Deep Sky.
Deep Sky is assembling various carbon removal technologies at a single site in Alberta. All are powered by one energy source, and captured CO2 is directed to a shared storage well.
The facility, once completed, is set to host eight DAC units, each developed by a different startup, showcasing a collaborative, multi-tech model in carbon removal.
Deep Sky aims to have its Alberta facility up and running by the end of March 2025, with credit deliveries to customers projected by June.
Although the plant’s initial 3,000-ton-per-year capacity is modest, Charlie Renzoni, vice president of carbon markets, says it’s intended to demonstrate the technology’s effectiveness to buyers and investors.
In addition to this pilot site, Deep Sky is developing three more extensive commercial facilities across Canada. Each has secured preliminary renewable energy allocations from regional utility providers.
Microsoft has signed several carbon removal agreements to bolster its drive to net zero. In September, it signed two carbon removal deals with Undo to remove 15,000 tons of CO2 and Eion to remove 8,000 tons.
Before this, it inked a biomass carbon sequestration carbon capture deal with Arbor. Starting in 2027, Arbor will support Microsoft’s climate goals by delivering 5,000 tons of carbon removal per year while generating 5MW.
In addition, it has invested in several carbon capture projects, including DAC projects from Climeworks, CarbonCapture, and Heirloom.
