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Microsoft’s Bold Move: Leading the Charge in Carbon Removal with Largest DAC CDR Purchase

In a revolutionary agreement, Microsoft has solidified its dedication to combating climate change by acquiring 500,000 metric tons of carbon removal credits through a partnership with 1PointFive. This follows their groundbreaking deal with BTG Pactual TIG and Indigo Ag, marking the most extensive purchase of Direct Air Capture (DAC)-enabled carbon dioxide removal (CDR) to date, establishing a new norm in corporate environmental stewardship.



Microsoft's collaboration with 1PointFive, a frontrunner in Carbon Capture, Utilization, and Sequestration (CCUS), represents a significant step towards their ambitious objective of achieving carbon negativity by 2030. Spanning six years, this agreement showcases Microsoft's commitment to incorporating cutting-edge climate technologies into their sustainability agenda. Not only does this highlight Microsoft's proactive approach, but it also emphasizes the importance and feasibility of DAC technology in the battle against global warming.


Expressing excitement about the deal, Brian Marrs, Microsoft's Senior Director for Carbon Removal and Energy, remarked, "To accomplish the necessary removals in this century, groundbreaking projects like STRATOS are vital in transitioning from experimental phases to large-scale implementation. DAC plays a crucial part in Microsoft's carbon removal strategy, supporting our overarching aim of reaching carbon negativity by 2030."


Identified by the International Energy Agency (IEA) as a pivotal element in establishing a net-zero energy system, DAC technology operates by directly extracting CO2 from the atmosphere. The captured CO2 can then be utilized as a resource or, in Microsoft's case, permanently sequestered. As per the Intergovernmental Panel on Climate Change (IPCC), scenarios that restrict global warming to 1.5°C require the expansion of carbon dioxide removal techniques to billions of tons annually, with DAC anticipated to have a significant impact.


1PointFive's STRATOS facility, currently being constructed in Ector County, Texas, is positioned to be the leading DAC installation on a global scale, designed to capture 500,000 metric tons of CO2 annually upon its completion in mid-2025. The captured CO2 will be securely stored through subsurface saline sequestration, ensuring it is not utilized for oil and gas extraction.


Despite substantial endeavors and investments, it is disheartening to note that the company's emissions have surged by up to 30 percent, as outlined in their 2024 Environmental Sustainability Report. This rise is directly associated with the increased demand for consumer cloud services, resulting in a rise in scope 3 emissions from the establishment and equipping of more data centers. Nevertheless, the world will be observing as Microsoft and 1PointFive transform the concept of large-scale carbon removal into a reality, paving the path for a cleaner, more sustainable planet.


For more information on this agreement and further updates stay in touch with 1PointFive website 



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