Microsoft offtake pause amid massive prior buys
Key Questions
Has Microsoft ended its carbon dioxide removal program?
No, Microsoft has clarified that its CDR program has not ended despite reports of pausing purchases. The company still holds 78.5% of durable contracts totaling 36.4Mt, highlighting some market fragility.
What new CDR contracts did Microsoft sign in April?
In April, Microsoft signed 1.14Mt in new durable contracts that include expansion by JPMorgan and Boeing as well as diversification through Frontier. These deals demonstrate continued corporate interest in high-quality removals.
What is the significance of the NTT DATA-Climeworks deal?
The NTT DATA-Climeworks agreement adds positive buyer momentum in the CDR market. It occurs amid growing focus on emissions from AI and data centers, supporting durable carbon removal pathways.
MSFT clarifies CDR program 'has not ended' but 78.5% durable contracts (36.4Mt total) exposes fragility; new 650kt BECCS with BioCirc marks first major deal post-pause. April 1.14Mt contracts and NTT DATA-Climeworks add buyer momentum amid AI emissions focus. Frontier's $1.8B expansion further diversifies demand. Climeworks now directly calls for buyer diversification and regulated demand, highlighting concentration risk. Latest: Microsoft signs 4.9 Mt durable CDR deal with Vaulted Deep (organic waste injection) over 12 years, reinforcing relentless buying but not DAC.