Microsoft Carbon Removal Deal: Vaulted Deep Xprize Startup

Microsoft's Carbon Emissions and Remediation Efforts

The rapid expansion of Microsoft’s data center infrastructure is contributing to a rise in its carbon footprint. Since 2020, the company has experienced a nearly 25% increase in carbon emissions.

This growth jeopardizes Microsoft’s commitment, announced in 2020, to become carbon negative by 2030 – meaning removing more carbon from the atmosphere than it emits.

Addressing the Emissions Gap with Carbon Removal Credits

To counteract this trend, Microsoft is actively procuring substantial volumes of carbon-removal credits. A recent agreement with Vaulted Deep involves the purchase of 4.9 million metric tons of carbon removal capacity.

The financial details of this 12-year agreement, extending through 2038, have not been publicly disclosed.

How Vaulted Deep Operates

Vaulted Deep employs an innovative approach, functioning in a manner opposite to traditional fossil fuel extraction. The company gathers solid waste materials – including processed sewage, surplus manure, and paper pulp – that would typically be disposed of in landfills or incinerators.

This waste is then converted into a slurry and injected into deep, porous rock formations. The technology utilized for drilling and creating these porous pathways is derived from techniques originally developed for oil and gas fracking.

Vaulted Deep's Progress and Funding

To date, Vaulted Deep has successfully removed over 18,000 metric tons of carbon dioxide from the atmosphere.

The company achieved recognition as a finalist in the Xprize Carbon competition and secured $32 million in Series A funding in November, led by Prelude Ventures.

The Challenge of Achieving Carbon Negativity

Microsoft faces a complex challenge in fulfilling its carbon negative pledge. While significant investments are being made in renewable energy sources – prioritizing emissions avoidance – certain components, such as semiconductors, currently lack zero-emission alternatives.

In the previous year, Microsoft reported generating 14.9 million metric tons of greenhouse gas emissions. This figure is more than twice the amount the company aims to produce by 2030 to achieve its negative emissions target.

Expanding Carbon Removal Investments

To accelerate progress towards its goal, Microsoft is increasing its investments in carbon removal technologies.

These investments include a 7 million metric ton agreement with Chestnut Carbon for reforestation efforts across 60,000 acres in the southeastern United States. Another deal with CO280 involves the capture of 3.7 million metric tons of carbon from paper mill operations along the Gulf Coast.