Microsoft’s acquisition opens up a crucial avenue for project funding, enabling substantial expansion and cost reduction for Heirloom’s Direct Air Capture (DAC) facilities.
Microsoft has inked a multi-year agreement to procure as much as 315,000 metric tons of carbon dioxide removal from Heirloom, a leading DAC company. This represents one of the most substantial carbon dioxide removal agreements to date, marking a significant milestone in the advancement of carbon removal technology.
This agreement follows Heirloom’s selection of its DAC Hub by the US Department of Energy, which includes the potential for up to $600 million in matching funding. Among the selected hubs, Project Cypress, situated in southwestern Louisiana, secured one of the highest levels of funding available.
Heirloom’s Direct Air Capture technology employs the inherent qualities of limestone to extract CO2 from the atmosphere and securely store it in various forms, including within concrete. This technology is recognized as one of the most economically efficient DAC solutions, with the potential to scale up to gigaton-level capacity.
Microsoft’s partnership with Heirloom will provide vital financial support for the construction of new Direct Air Capture facilities and expedite the growth of the carbon removal market. It also signifies a substantial vote of confidence in Heirloom’s technology and its capacity to play a substantial role in combating climate change.
Microsoft has set a target to achieve carbon negativity by 2030, and this agreement forms a fundamental component of its strategy to reach that objective. The company is also actively investing in other technologies for mitigating climate change, such as renewable energy and energy efficiency.
The collaboration between Microsoft and Heirloom represents a significant stride forward in the battle against climate change. It underscores the willingness of corporate purchasers to invest in carbon removal and offers a much-needed boost to the development of this emerging technology.
Heirloom CEO Shashank Samala said:
“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.”
Microsoft Senior Director of Energy and Carbon Brian Marrs said:
“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. As an investor in and customer of Heirloom, we believe that Heirloom’s technical approach and plan are designed for rapid iteration to help drive down the cost of large-scale Direct Air Capture at the urgent pace needed to meet the goals of the Paris Agreement.”