JPMorgan Chase has agreed to purchase carbon removal credits from startup Graphyte in a deal that also aims to help prevent wildfires. The agreement covers 60,000 tons of removal credits delivered over 10 years from an existing Arkansas project and a planned facility in Arizona. Financial terms of the deal were not disclosed.
Carbon removal, which pulls CO₂ from the atmosphere, is considered critical for meeting climate goals, but the market is in its early stages. The industry has faced policy setbacks as former President Trump rolls back supportive programs. Deals range from nature-based projects to more durable, expensive technologies like direct air capture.
Graphyte's method compresses agricultural and forestry waste and stores it underground to keep carbon from re-entering the atmosphere. The planned Arizona facility will specifically use material from forest thinning projects, which reduce wildfire fuel but often lack strong commercial markets. A 2022 wildfire near Flagstaff, where the facility will be based, destroyed 30 homes and forced evacuations.
The purchase signals that the carbon removal industry is pushing forward despite political headwinds, highlighting how near-term co-benefits like wildfire prevention can help drive corporate deals. Taylor Wright, JPMorgan's head of operational sustainability, said Graphyte's proven technology was key, but "equally as important for us is looking for projects that go beyond just delivering carbon benefits."
Graphyte founder and CEO Barclay Rogers stated the company can "create a market for that [forest] material by converting it into durable carbon removal." The deal illustrates a growing trend where climate startups seek to demonstrate immediate local value alongside long-term carbon sequestration.