Report on the Carbon Removal Offtake Agreement Between Vaulted Deep and Microsoft

Executive Summary

On July 17, 2025, waste management and carbon removal firm Vaulted Deep announced a significant offtake agreement with Microsoft. This 12-year partnership, extending to 2038, involves the delivery of up to 4.9 million tonnes of permanent carbon dioxide removal. The agreement facilitates the expansion of Vaulted Deep’s existing infrastructure, which utilizes deep well injection to sequester organic waste. This initiative directly supports multiple United Nations Sustainable Development Goals (SDGs) by integrating climate action with sustainable waste management, environmental protection, and local economic development.

Agreement and Technology Overview

The core of the agreement is a long-term commitment from Microsoft to purchase durable carbon removal credits generated by Vaulted Deep. The methodology involves the following process:

1. Waste Sourcing: Vaulted Deep partners with municipalities, agricultural producers, and industrial operators to acquire organic waste streams such as biosolids, manure, paper sludge, and food residues.
2. Sequestration Method: The company employs deep well injection technology to store the organic waste, which contains atmospheric carbon, in stable geologic formations thousands of feet underground.
3. Permanent Removal: These formations are sealed by impermeable rock layers, ensuring the permanent removal of carbon and preventing the release of methane. The process is certified by the carbon registry Isometric for over 1,000-year durability.
4. Scalability: The agreement will enable Vaulted Deep to scale its operations, which are already permitted and active, to new sites across the United States.

Contribution to Sustainable Development Goals (SDGs)

The initiative makes significant contributions to several SDGs through its integrated approach to environmental and economic challenges.

• SDG 13: Climate Action: The primary objective is the removal of up to 4.9 million tonnes of CO₂ from the atmosphere, directly addressing climate change mitigation. The process also prevents methane emissions that would otherwise result from the surface decomposition of organic waste.
• SDG 11: Sustainable Cities and Communities: By managing municipal waste streams like biosolids, the technology helps cities reduce their environmental footprint (Target 11.6). The project in Los Angeles, for instance, has managed 20 percent of the city’s biosolids for 15 years.
• SDG 6: Clean Water and Sanitation & SDG 15: Life on Land: The deep injection of waste prevents potential surface and groundwater contamination from pollutants like PFAS and reduces nutrient runoff from agricultural manure, protecting local water resources and terrestrial ecosystems.
• SDG 9: Industry, Innovation and Infrastructure: The agreement supports the scaling of resilient infrastructure and promotes sustainable industrialization by applying proven technology (deep well injection) to the novel challenges of carbon removal and waste management.
• SDG 8: Decent Work and Economic Growth: The expansion of operations creates local employment and stimulates economic activity. The Great Plains site in Kansas, for example, created 18 full-time jobs and generated over $5 million in local economic investment within its first 18 months.
• SDG 17: Partnerships for the Goals: The agreement between Vaulted Deep and Microsoft exemplifies a cross-sector partnership (Target 17.17) that mobilizes technology and financial resources to advance sustainable development.

Operational Impact and Future Outlook

Vaulted Deep’s operations have already demonstrated measurable results, with nearly 18,000 tonnes of CO₂ removed and over 69,000 tonnes of organic waste diverted from landfills, incineration, or surface application. The technology has been operational since 2008.

Case Study: Kansas Operations

• Manages 75% of the City of Derby’s biosolids.
• Partners with local farmers to manage excess manure.
• Infrastructure upgrades are set to triple the facility’s waste processing capacity, leading to further job creation.

With over one billion tons of excess organic waste produced annually in the U.S., Vaulted Deep is positioned for significant growth. The company is actively seeking new partnerships to expand its dual-solution model for waste management and carbon sequestration, aligning commercial operations with critical global sustainability targets.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 6: Clean Water and Sanitation
   • The article mentions that Vaulted Deep’s process helps keep “trace contaminants like PFAS out of local environments” and manages excess manure that can cause “nutrient runoff.” This directly relates to protecting water quality.
2. SDG 8: Decent Work and Economic Growth
   • The project is shown to stimulate local economies. The article explicitly states that the Great Plains site “created 18 full-time jobs and generated more than $5 million in local economic investment.”
3. SDG 9: Industry, Innovation, and Infrastructure
   • The article highlights an innovative application of existing technology (“deep well injection”) and infrastructure to solve modern environmental problems. It mentions upgrading infrastructure to “triple its waste processing capacity” and expanding to new sites.
4. SDG 11: Sustainable Cities and Communities
   • The company’s partnership with municipalities to manage urban waste streams is a key focus. For example, it handles “20 percent of the city’s biosolids” in Los Angeles and “75 percent of the City of Derby’s biosolids,” directly addressing municipal waste management challenges.
5. SDG 12: Responsible Consumption and Production
   • The core business of Vaulted Deep is the environmentally sound management of waste. The article details how the company diverts “more than 69,000 tonnes of organic waste from surface application, landfilling, and incineration,” addressing waste management patterns.
6. SDG 13: Climate Action
   • This is the most prominent SDG in the article. The entire project is centered on “permanent carbon removal.” The agreement with Microsoft is for “4.9 million tonnes of durable carbon dioxide removal,” and the company’s process also “reduces methane emissions.”
7. SDG 15: Life on Land
   • By managing organic waste like biosolids and manure that would otherwise be applied to land, the company helps prevent soil contamination and nutrient runoff, thereby protecting terrestrial ecosystems from pollution.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 6.3: By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials.
   • The article supports this by describing how the process prevents “nutrient runoff” and keeps “trace contaminants like PFAS out of local environments.”
2. Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.
   • The article describes a “novel application” of existing infrastructure and a “differentiated, scalable approach” to carbon removal, which represents technological innovation.
3. Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable.
   • The company’s model is based on using “large-scale existing infrastructure” for a new, sustainable purpose (carbon removal and waste management). The mention of infrastructure upgrades to “triple its waste processing capacity” aligns directly with this target.
4. Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.
   • The company’s partnerships with cities like Los Angeles and Derby to manage their “biosolids” is a direct contribution to improving municipal waste management.
5. Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.
   • While not reducing waste at the source, the company’s service provides a sustainable alternative to landfilling and incineration, contributing to the overall goal of better waste management by diverting “more than 69,000 tonnes of organic waste.”
6. Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • Microsoft’s offtake agreement represents a significant corporate strategy to invest in and scale “durable, high-integrity carbon removal,” integrating climate action into its business operations.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Carbon Removal and Methane Reduction:
   • Tonnes of CO₂ removed (e.g., “nearly 18,000 tonnes of CO₂” already removed; “up to 4.9 million tonnes” in the agreement).
   • Reduction in methane emissions (mentioned qualitatively).
2. Waste Management:
   • Tonnes of organic waste diverted from landfills/incineration (e.g., “diverted more than 69,000 tonnes of organic waste”).
   • Percentage of municipal waste managed (e.g., “20 percent of the city’s biosolids” in LA; “75 percent” in Derby).
3. Economic Impact:
   • Number of full-time jobs created (e.g., “18 full-time jobs”).
   • Amount of local economic investment (e.g., “more than $5 million”).
4. Infrastructure and Scalability:
   • Increase in waste processing capacity (e.g., “triple its waste processing capacity”).
   • Number of new sites established (“expand… to new sites across the U.S.”).
5. Environmental Protection:
   • Prevention of contaminants entering the environment (e.g., “keep trace contaminants like PFAS out of local environments”). This is a qualitative indicator of improved water and soil quality.

4. Summary Table of SDGs, Targets, and Indicators

Source: prnewswire.com