Microsoft and Royal Bank of Canada (RBC) have announced their commitment to purchase carbon dioxide removal credits from Deep Sky, Canada’s first commercial facility dedicated to removing carbon from the atmosphere, Bloomberg reports.
The agreement marks a major milestone for the burgeoning carbon removal industry, where companies are developing innovative technologies to tackle climate change. Deep Sky’s approach is particularly unique, utilizing a centralized hub in Alberta to house multiple direct air capture (DAC) units developed by various startups.
This collaborative model aims to accelerate innovation by reducing overhead and streamlining permitting processes. The facility will be powered by a single energy source and utilize a shared CO2 storage well, further optimizing efficiency.
Deep Sky’s facility is expected to be operational by March 2024, with the first carbon removal credits delivered to customers by June. While the initial capacity is limited to 3,000 tons per year, the project serves as a proof of concept for the technology, attracting both investors and buyers.
The Deep Sky deal represents a significant commitment for Microsoft and RBC, who are actively pursuing ambitious climate goals. While Microsoft aims to become carbon-negative by 2030, RBC has made its first foray into the DAC market.
