Microsoft Triples Down on Rock-Based Carbon Removal in Latest Undo Partnership

Strategic Expansion in Carbon Removal Portfolio

Microsoft has significantly scaled its commitment to enhanced rock weathering (ERW) technology by announcing its third and largest carbon removal agreement with UK-based firm Undo. The new contract covers 28,900 tons of carbon removal credits, representing a substantial increase from previous engagements and signaling growing confidence in this emerging carbon removal approach.

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This latest agreement builds upon Microsoft’s established relationship with Undo, beginning with an initial 5,000-credit purchase in 2023, followed by a 15,000-ton commitment in 2024. The consistent scaling of these contracts demonstrates Microsoft’s strategic approach to developing what it views as a crucial component of its carbon negative roadmap., as covered previously, according to industry analysis

Innovative Financing Model Accelerates Deployment

The transaction was enabled by a specialized debt facility from Inlandsis, a Canadian climate fund managed by Fondaction Asset Management. This financing structure addresses one of the key challenges in carbon removal development: upfront capital requirements for long-term delivery contracts.

“Innovative financing is the catalyst for unlocking gigatonne-scale carbon removal,” emphasized Jim Mann, founder and CEO of Undo. “The support of Inlandsis shows how financial backers can help transform carbon removal into a genuine asset class – one that is scalable, tradable, and investable.”, according to emerging trends

David Moffat, managing director at Inlandsis, noted the significance of this partnership: “This collaboration marks several milestones for us – our first investment in an ERW project and the first Canadian investment for our second fund – and highlights our commitment to advancing carbon finance across Canada and beyond.”, according to market analysis

The Science Behind Enhanced Rock Weathering

Enhanced rock weathering accelerates natural geological processes that permanently remove carbon dioxide from the atmosphere. The technique involves:

• Crushing silicate minerals like basalt or wollastonite into fine powder
• Spreading the mineral powder across agricultural land
• Allowing natural rainfall to trigger chemical reactions that convert atmospheric CO2 into stable carbonates
• Creating permanent carbon storage while potentially improving soil health

According to Undo, the Microsoft agreement will facilitate the application of 90,000 tons of silicate rock across more than 30,000 acres of Canadian farmland. The deployment is carefully coordinated with local agricultural partners to align with planting and harvesting schedules while considering regional environmental conditions.

Microsoft’s Comprehensive Carbon Removal Strategy

Phillip Goodman, director of carbon removal portfolio at Microsoft, explained the strategic thinking behind the repeated investments: “Enhanced rock weathering is a promising pathway to gigatonne-scale carbon removal. Undo’s commitment to scientific rigor gives us confidence in both the durability of these credits and their role in helping Microsoft achieve its goal of being carbon negative by 2030.”

Microsoft’s carbon removal portfolio extends beyond Undo, including significant agreements with other ERW specialists:

• 12,000-ton arrangement with US-based Terradot
• 8,000-ton partnership with Eion
• 11,400-ton commitment to Lithos Carbon

The company has also committed to funding crucial scientific research alongside its carbon credit purchases, addressing the verification and monitoring challenges that often accompany novel carbon removal approaches.

Risk Management and Market Development

The transaction includes specialized insurance underwriting from CFC, a provider that focuses on supporting high-quality carbon market initiatives by mitigating risk and enabling complex transactions. This involvement highlights the evolving sophistication of carbon removal markets as they mature toward becoming standardized, bankable asset classes.

The 2036 delivery timeline for the carbon removals underscores the long-term nature of these agreements and the importance of stable financing structures that can support multi-year development and verification processes.

As carbon removal technologies transition from experimental to commercial scale, partnerships like the Microsoft-Undo collaboration demonstrate how corporate sustainability commitments, specialized financing, and scientific validation are converging to build the infrastructure needed for meaningful climate impact.

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