Vancouver-based Arca Climate has signed a offtake agreement with Microsoft to deliver nearly 300,000 tonnes of durable carbon dioxide removal (CDR) over the next decade — a major validation of Canada’s growing leadership in carbon removal innovation.
The agreement recognizes Arca’s pioneering work in industrial mineralization, a carbon removal process that transforms atmospheric CO₂ into rock. By repurposing alkaline waste streams — such as mine tailings and waste rock — Arca accelerates natural geochemical reactions that permanently store carbon as stable carbonate minerals.
Arca completed its first full-scale mineralization demonstration project at an active mine site earlier this year. The company now plans to expand its pipeline of mineralization projects worldwide, advancing from pilot-scale operations toward million-tonne deployment. Microsoft’s long-term offtake commitment, one of the largest of its kind, will help accelerate this transition.
“Arca was built on the foundation of more than 20 years of academic research, dozens of field trials, and collaborations with more than 30 mining companies around the world,” said Dr. Greg Dipple, Arca co-founder and Head of Science.
Industrial mineralization offers several advantages as a carbon removal pathway. It relies on abundant industrial waste already at the Earth’s surface, requires little additional land or water, and locks carbon away for millennia. The process also generates co-benefits — from reducing environmental risks to creating jobs in mining communities.
“We have a unique opportunity to utilize one form of waste (mine tailings) to neutralize another (excess atmospheric CO₂),” said Arca CEO Paul Needham. “This agreement with Microsoft validates industrial mineralization as a scalable, durable, and economically viable solution to help meet global climate goals.”
Microsoft’s Carbon Dioxide Removal Program Director, Phil Goodman, said the partnership strengthens Microsoft’s portfolio with a scientifically proven and highly durable removal method.
“Arca brings notable scientific expertise and has proven they can sequester carbon through their demonstration project, giving us confidence to enter into a multi-year agreement,” Goodman said.
Arca’s announcement follows growing momentum in Canada’s carbon removal sector, with organizations like NorthX Climate Tech investing in early-stage CDR companies to help Canadian innovation compete globally.
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