Arca Climate Technologies co-founder and head of science Dr. Greg Dipple. The Canadian company just made a landmark deal with Microsoft. Photo by Arca Climate Technologies

Microsoft Corp. has tapped a Canadian carbon-removal startup in its quest to counter rising emissions from its expanding data-centre, artificial intelligence and supply-chain operations.

The tech giant signed a 10-year deal with Vancouver-based Arca Climate Technologies Inc. that will see it purchase nearly 300,000 tonnes of permanent carbon removal credits in a landmark commercial deal for the Canadian carbon tech sector.

Arca landed the contract with Microsoft, worth an undisclosed amount, after demonstrating its process in an 18-month pilot at BHP Group Ltd.’s nickel mine in Australia. The deal provides Microso

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