Microsoft Partners With Terradot for Carbon Removal Deal

Microsoft has signed a historic deal with climate technology firm Terradot to sequester 12,000 tonnes of CO₂ between 2026 and 2029. This is not just a purchase of carbon credits—it will underwrite the most sophisticated scientific surveillance effort ever carried out for Enhanced Rock Weathering (ERW), a cutting-edge carbon removal technique. This is a milestone in the path to mainstreaming ERW as a widely recognized solution for carbon sequestration.

Terradot, supported by significant investment and industry partnerships, has been leading the way in ERW deployment. The firm recently closed $54 million in Series A funding, with investment from Microsoft's Climate Innovation Fund among other investors. As part of the Microsoft agreement, Terradot has also inked deals to capture almost 300,000 tonnes of CO₂ in partnership with Google and Frontier. The rising demand shows the growing trust in ERW as a reliable climate solution.

Terradot CEO James Kanoff highlighted that Microsoft's action is more than the mere buying of carbon removal credits. The technology giant is also investing in important scientific studies aiming to enhance the measurement, reporting, and verification (MRV) of ERW. Kanoff pointed out that the studies would play a crucial role in making ERW a reliable and scalable approach towards carbon sequestration. By sponsoring these initiatives, Microsoft is boosting confidence in the long-term performance of ERW.

Microsoft's interest in ERW is also in line with its overall climate strategy. According to Brian Marrs, Microsoft Senior Director of Energy & Carbon Removal, the company is interested in knowing how ERW can become both cost-effective and scalable as a carbon removal option. Marrs also underscored the potential benefits of ERW for soil health in the context of conservation practices and the introduction of alkaline rocks, which can increase agricultural productivity while mitigating climate change.

Scientific verification is the cornerstone of this project. Terradot's Brazil ERW project will extend current registry requirements through the addition of high-density soil sampling, state-of-the-art watershed monitoring, and precise carbon cycle modeling. The study seeks to increase confidence in ERW as a real and verifiable carbon removal practice while creating low-cost MRV systems that can be scaled around the world.

Stanford University Professor Scott Fendorf, a founding member of Terradot's scientific team, broke down the twofold effect of this study. Firstly, it will improve trust in ERW's measurement and verification process, increasing the confidence of carbon credit purchasers in its efficacy. Secondly, the information gathered will make the cost of ERW deployment decrease, making it a more scalable option for carbon removal. By proving ERW's reliability and enhancing its effectiveness, this project is likely to spur broader use of the technology.

Terradot is already making considerable progress in expanding ERW in Brazil, where it has installed close to 50,000 tonnes of rock over 2,000 hectares of land. The project enjoys the advantages of Brazil's conditions, such as its tropical soils, clean electricity grid, and well-established agricultural infrastructure. Moreover, the proximity of rock quarries—within 50 kilometers of farmland—improves operational efficiency while minimizing emissions from transportation.

Julia Marisa Sekula, Terradot's Director of Brazil Operations and Chief Financial Officer, stressed that the company's strategy balances carbon removal with farm value. By optimizing soil pH and increasing micronutrient availability, ERW has the potential to generate added value for farmers while advancing global climate objectives. Sekula noted that this combined effect makes ERW's case an economically sound and sustainable solution for large-scale carbon removal.

The initial carbon credits from Terradot's Brazil project are due to be released in 2025. As ERW gains more momentum, projects like this have the potential to lead to its mass adoption as a pillar of carbon sequestration programs globally. By bridging scientific research, industrial investment, and careful deployment, the Microsoft-Terradot partnership is a key step toward accelerating the science and scale of Enhanced Rock Weathering.