Microsoft is buying tons of carbon removal from Xprize startup Vaulted Deep

In an ambitious effort to address its growing carbon emissions, Microsoft has announced a significant purchase of carbon-removal credits from startup Vaulted Deep. This move comes as the tech giant ramps up the construction of data centers, contributing to a nearly 25% increase in its carbon emissions since 2020, which jeopardizes its commitment to achieving negative carbon emissions by 2030. The recent deal, which involves the acquisition of 4.9 million metric tons of carbon removal credits, will span over 12 years until 2028. However, the financial details of this agreement have not been disclosed. Vaulted Deep operates uniquely, akin to a reverse oil company. It processes solid waste materials, such as treated sewage and excess agricultural byproducts, blending them into a slurry that is injected deep underground into porous rock formations. This method utilizes technology originally developed for the fracking industry. To date, Vaulted Deep has successfully removed over 18,000 metric tons of carbon dioxide from the atmosphere. The company gained recognition as a runner-up in the Xprize Carbon competition and secured $32 million in a Series A funding round in November, led by Prelude Ventures. Microsoft faces a pressing challenge in fulfilling its carbon neutrality pledge. While the company has invested significantly in renewable energy sources, it still relies on certain materials, like semiconductors, for which there are currently no zero-emission alternatives available. Last year, Microsoft reported generating 14.9 million metric tons of greenhouse gas emissions, significantly more than its targeted output for 2030. In its pursuit of carbon neutrality, Microsoft is increasing its investments in carbon removal initiatives. Recent efforts include a 7 million metric ton agreement with Chestnut Carbon to reforest 60,000 acres in the southeastern United States and another deal for 3.7 million metric tons with CO280, aimed at capturing carbon emissions from paper mill operations along the Gulf Coast.