In a groundbreaking step towards achieving its carbon-negative goals, Microsoft has signed a multi-year carbon removal deal with Arbor, a California-based company that leverages rocket engine technology to remove carbon dioxide from the atmosphere. This partnership will see Microsoft purchasing 25,000 tons of CO2 removal from Arbor starting in 2027, as part of the tech giant’s ambitious goal of becoming carbon-negative by 2030.
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Arbor’s innovative carbon removal system is built on a Bioenergy Carbon Capture and Storage (BECCS) platform, which not only removes carbon dioxide from the air but also generates clean electricity. Using a fuel source of organic waste, Arbor’s technology is modular, allowing it to be deployed in various settings.
The system also boasts the ability to generate 5 MW of electricity—enough to power approximately 4,000 homes across the United States. What’s even more impressive is that the system relies on technology akin to that used to propel rockets, a clear reflection of Arbor's roots in rocket science.
Arbor’s founders, veterans of SpaceX, have taken advancements in oxy-combustion and supercritical turbomachinery—technologies that played key roles in rocket engine development—and applied them to power generation and carbon removal. This fusion of aerospace engineering with sustainability efforts sets Arbor apart from other carbon capture technologies, making it a unique player in the field.
The carbon removal deal between Microsoft and Arbor will operate under a new Biogenic Carbon Capture and Sequestration (BCCS) protocol issued by Isometric, a carbon removal registry. This arrangement allows Microsoft to receive carbon credits for every ton of CO2 removed through Arbor’s system. The initiative aligns closely with Microsoft’s broader strategy to counterbalance its historical emissions and drive impactful climate solutions.
"This contract with Microsoft serves as a significant endorsement from one of the most influential and trusted leaders in the industry," said Brad Hartwig, CEO of Arbor. "Microsoft’s commitment to draw down their historical emissions by 2050 perfectly aligns with our mission to bring the planet back into balance with carbon-negative electricity and permanent carbon removal. This agreement underlines the promise of our technology and is another critical step in getting this project off the ground."

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Arbor’s BECCS platform promises significant environmental impact. The company’s first facility will sequester and permanently store 75,000 tons of CO2 per year, which is equivalent to taking 16,000 cars off the road. In addition to capturing CO2, the facility will produce 5 MW of clean electricity, further contributing to sustainable energy solutions. By the time the system is fully scaled by 2030, Arbor expects to generate 100 MW of electricity annually, while removing close to two million tons of carbon each year.
"The technical promise and modularity of Arbor’s system makes it a very compelling climate solution," said Brian Marrs, Senior Director for Carbon Removal and Energy at Microsoft. "Arbor has established a clear, actionable blueprint for simultaneously removing CO2 while producing clean electricity. We look forward to collaborating with the Arbor team on our path to carbon-negativity."
Once fully operational, Arbor’s technology will deliver carbon removal at a price well below $100 per ton. This will allow the company to generate baseload power at rates competitive with fossil fuels, creating a win-win scenario where environmental sustainability aligns with economic feasibility.
This agreement with Arbor is just one piece of Microsoft’s expansive carbon removal strategy. Over the years, the tech company has invested heavily in various carbon removal methods as part of its mission to reverse its historical emissions by 2050. Microsoft’s carbon removal portfolio includes a range of technologies, from direct air capture (DAC) to ocean-based carbon removal and biochar-based projects.
Notably, the partnership with Arbor adds to Microsoft’s existing BECCS-based deals with companies such as Ørsted and Stockholm Exergi. These collaborations reflect Microsoft’s continued commitment to leveraging cutting-edge solutions in its fight against climate change.With the addition of Arbor’s technology to its roster, Microsoft continues to push the boundaries of what’s possible in carbon removal and energy generation. By working with innovative companies like Arbor, Microsoft is positioning itself as a leader not only in the tech industry but also in the global effort to combat climate change.
What sets Arbor’s system apart is its modularity, which enables it to be deployed across a variety of settings and scales. This flexibility means the system can be tailored to suit different environments, from urban areas to remote locations, offering a versatile solution to global carbon challenges.
By focusing on easily deployable and scalable solutions, Arbor aims to expand its carbon removal efforts on a global scale. The company's goal is to provide carbon removal services at a price point that is not only affordable but also competitive with existing energy generation methods. In doing so, Arbor seeks to make meaningful contributions to reducing global CO2 emissions, all while producing sustainable, clean electricity.
The partnership between Microsoft and Arbor represents a significant step forward in the world of carbon removal and clean energy generation. As both companies work towards their respective goals of carbon neutrality and sustainable energy solutions, this collaboration could pave the way for broader adoption of BECCS technology across industries and nations.
With innovations like Arbor’s rocket science-inspired system, the future of carbon removal looks more promising than ever. As we move closer to 2030, the potential to scale this technology and apply it to a global context grows, offering hope that we can address the pressing issue of climate change.
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