Arca teams up with Microsoft for major carbon removal deal

Arca, an industrial mineralization company, announced a new offtake agreement with Microsoft to supply nearly 300,000 tonnes of durable carbon dioxide removal (CDR) over the next decade.

This partnership marks a major milestone for Arca’s industrial mineralization solution—an approach that utilizes existing industrial infrastructure and repurposes alkaline waste streams to capture and permanently store atmospheric CO2 as stable carbonate minerals.

Tim Hodgson, the federal minister of energy and natural resources, stated: “The next generation of clean growth will be built by Canada’s first-class innovation ecosystem – companies like Arca, which are turning Canadian ingenuity into global leadership. Carbon removal technologies are not only strategic tools we can use to tackle climate change, they create good jobs and position Canada at the forefront of the global opportunity of a low-carbon economy.”

Arca’s initial commercial projects focus on repurposing mining byproducts such as tailings and waste rock. These projects accelerate a natural process called carbon mineralization—the conversion of gaseous CO2 into solid mineral form. This approach delivers measurable, independently verified, and highly durable carbon removals while also making mine waste safer and generating employment opportunities for local communities.

In 2025, Arca completed its first full-scale mineralization demonstration at an active mine site. The company is actively expanding its pipeline of mineralization projects, aiming to transition from pilot operations to million-tonne-scale facilities. Microsoft's long-term support helps speed up this development.

Dr. Greg Dipple, co-founder and head of science at Arca, remarked: “Arca was built on more than 20 years of academic research, dozens of field trials, and collaborations with over 30 mining companies worldwide.”

Industrial mineralization is important because it utilizes abundant industrial waste, with billions of tonnes of historical byproducts already available at Earth's surface. The process has a small environmental footprint, enabling it to be integrated into existing industrial sites with minimal energy, land, and water use. It offers geological durability by permanently removing CO₂ for thousands of years, supported by transparent verification (MRV). Additionally, it provides multiple co-benefits, including reducing environmental risks, creating jobs in host communities, and transforming waste liabilities into valuable assets.

Paul Needham, CEO of Arca, commented: “We have a unique opportunity to utilize one form of waste (mine tailings) to neutralize another (excess atmospheric CO₂). The result is less waste and a healthier environment. This agreement with Microsoft validates industrial mineralization as a scalable and durable pathway that can make a significant contribution to global climate goals.”

Phil Goodman, director of Microsoft’s carbon dioxide removal program, added: “This offtake agreement diversifies Microsoft’s carbon removal efforts by focusing on a pathway that combines scalability and permanence. Arca brings notable scientific expertise and has demonstrated its ability to sequester carbon through its projects, giving us confidence to commit to a multi-year partnership. We are pleased to support Arca in advancing industrial mineralization.”

More information is posted on www.ArcaClimate.com.