Commercial, Energy Efficiency, GHG Emissions  -  September 25, 2024

Microsoft Signs Carbon Removal Agreement

Software company Microsoft signed an agreement to receive 25,000 tons of permanent carbon dioxide removal.

The agreement was signed with Arbor, a carbon-negative power company. Starting in 2027, Arbor will support Microsoft’s climate goals by delivering 5,000 tons of carbon removal annually while generating 5 megawatts (MW) of clean electricity by using readily available organic waste as a fuel source for its compact, modular system.

Arbor is the first supplier signed on to have credits issued against a new protocol from Isometric for Biogenic Carbon Capture and Sequestration (BCCS), and all carbon removal delivered to Microsoft through this agreement will be registered with Isometric. Isometric is a carbon removal registry with a mission to ensure the transition to carbon removal happens responsibly and fast. The scientific rigor and transparency behind Isometric’s CO2 removal verification process further validates the technology behind Arbor.

The Arbor system is based on the fundamental principles of Bioenergy with Carbon Capture and Storage (BECCS), but reimagined with novel technology that makes it emissions-free and extremely modular. Arbor's team is leveraging recent advancements in oxy-combustion and supercritical turbomachinery, many of which they pioneered while developing rocket engines over the last decade. When applied to electricity generation, these innovations enable a system that is both cheaper and faster to deploy than a traditional power plant without compromising on efficiency.

“The technical promise and modularity of Arbor’s system makes it a very compelling climate solution,” said Brian Marrs, Senior Director for Carbon Removal and Energy at Microsoft, in a statement. “Arbor has established a clear, actionable blueprint for simultaneously removing CO2 while producing clean electricity. We look forward to collaborating with the Arbor team on our path to carbon-negativity.”

Arbor’s initial facility, which will supply credits to Microsoft, will be able to sequester and permanently store 75,000 tons of carbon annually. Once the facility is fully scaled in 2030, Arbor will be able to generate 100 MW of electricity while removing almost 2 million tons of carbon each year. Being able to rapidly scale to these volumes also enables Arbor to achieve a price well below $100 per ton.

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