Eyeing its material supply chain for future data centers, office buildings and other construction projects, Microsoft Corp. has entered a binding, six- to nine-year purchase agreement for up to 622,000 metric tons of Sublime Systems’ namesake cement. Tested to ASTM C1157, Standard Performance Specification for Hydraulic Cement thresholds, Sublime Cement is processed through an electrochemical method with lower virgin material feedstock requirements and carbon dioxide emissions than portland cement production. Sublime Systems can fulfill the Microsoft supply contract from a premier commercial operation under way in Holyoke, Mass., and future satellite facilities.
“In designing creative transactions such as this one with Sublime, we aim to accelerate the mass production and adoption of clean construction materials, enabling innovators to overcome the real, acute challenges of scaling in heavy industries with existing manufacturing capacity,” said Microsoft Vice President of Global Datacenter Construction Jeff Leeper. “We need breakthrough, reimagined products like Sublime Cement at scale to reduce emissions – both at Microsoft and globally.”
“This purchase enables Microsoft to access our low-carbon cement technology regardless of where their construction is,” added Sublime Systems CEO and Co-founder Dr. Leah Ellis. “This solves a previously intractable challenge for clean cement scale-up: the lack of long-term cement transactions contrasted with the immediate need for innovators to demonstrate bankable customers to fund their manufacturing. Microsoft is stepping up as the first customer for our future megaton-scale plant, enabling us to more rapidly build and scale Sublime Cement as a global, enduring solution for clean construction.”
SPECTRUM OF PRODUCT AND CREDIT MODELS
The novel contract with Microsoft, Dr. Ellis added, enables the purchase of Sublime Cement environmental attribute certificates (EAC) separate from the physical concrete binder – a similar mechanism to decoupling renewable energy certificates from the electron at the point of clean electricity production. Such a contract model is powerful when applied to heavy industry like cement, which is typically produced within a tight geographic radius of customer construction projects.
“To reach net zero, the world needs innovative technology solutions like Sublime Cement. Our focus is growing the market for these solutions,” observed Microsoft Director, Carbon Reduction Strategy & Market Development Katie Ross. “While we prioritize deploying physical material whenever possible, this EAC approach helps both buyers and sellers overcome geographic, supply chain, cost, and other barriers that make it challenging to introduce new technologies.”
Microsoft’s purchase of Sublime Cement EACs will be third-party verified and potentially managed on a future book and claim system. This follows a 2024 memorandum of understanding, where the two parties committed to developing a book and claim transaction that was verifiable, additional, and catalytic. It complements efforts from organizations such as RMI (formerly known as the Rocky Mountain Institute), which published a white paper (note graph) with Microsoft on a book and claim model for the materials sector. RMI is also partnering with the Center for Green Market Activation on the development of a book and claim system in partnership with other leaders in clean concrete technologies.
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