Dive Brief:
- Microsoft has entered an agreement to purchase 626,000 metric tons of carbon removal credits from a bioenergy and carbon capture and storage (BECCS) project that is believed to be the first majority Indigenous-owned removal project in Canada, according to a Monday press release.
- The deal will run for 15 years and the credits will come from the North Star Carbon Solutions Limited Partnership, a carbon removal project being developed in Saskatchewan, Canada, according to the release.
- The project is majority owned by the Meadow Lake Tribal Council, a regional First Nations government organization, and the carbon capture and storage process will be operated by Carbon Alpha, a subsidiary of Canada-based carbon removal solutions provider Svante Technologies, according to the project listing on carbon removal registry Puro.earth.
Dive Insight:
Microsoft has invested in a variety of carbon removal deals over the past few years in an effort to mitigate its climate footprint, with a goal of becoming “carbon negative” by 2030. The tech conglomerate also has a goal of removing all of the historical carbon it has emitted since it was founded by 2050.
Microsoft’s Carbon Removal Portfolio Director Phillip Goodman said that in order to reach its climate targets, the company must “help scale solutions that deliver durable storage and are backed by rigorous monitoring and verification.”
“This agreement supports an Indigenous-led collaboration that enables the infrastructure needed to bring durable carbon removal online in Canada, thus creating a pathway for additional projects over time,” Goodman said in the release.
The North Star project’s BECCS process will first rely on using sustainable forestry practices to draw down atmospheric carbon dioxide then harvesting trees to make products like lumber, pulp and paper, according to a webpage on the project. The waste from the manufacturing of those products will be used to create electricity and heat, with the resulting carbon captured, turned into a liquid and finally injected into an underground well, according to the project description.
The project is expected to generate 90,000 carbon credits annually once it’s up and running. The North Star project is currently in the design stage and expected to begin commercial operation in 2029, according to its Puro.earth listing.
Svante is providing all of the funding until a start construction decision is made, and a company executive called Microsoft’s agreement an “anchor offtake” in the release.
MLTC Tribal Chief Jeremy Norman said in the release that the North Star project reflects the “long-standing commitment to land stewardship and sustainable forest management” of the nations that comprise MLTC. The project is also expected to create 50 local jobs during construction and up to 10 ongoing jobs once operational, according to the release.
“The project demonstrates how Indigenous leadership and collaboration can advance climate solutions while supporting meaningful employment and economic opportunities for our member Nations and the surrounding community,” Norman said.
