Exclusive: JPMorgan strikes carbon removal deal that doubles as wildfire prevention

Driving the news: Graphyte, a carbon removal company founded in 2023, will supply 60,000 tons of removal credits over 10 years from an existing Arkansas project and a planned facility in Arizona enabled by the deal.

• Financial terms weren't disclosed.

The big picture: Carbon removal — which pulls CO₂ from the atmosphere — is seen as critical to meeting climate goals.

• But the market is still in its early stages and has faced setbacks as President Trump rolls back supportive policies.

How it works: Deals vary widely, from nature-based carbon projects to more durable — and often more expensive — approaches like direct air capture or mineralization.

• Graphyte falls somewhere in between, compressing agricultural and forestry waste and storing it underground to keep carbon from re-entering the atmosphere.

The intrigue: The Arizona facility would use material from forest thinning projects, which reduce wildfire risk but often lack strong commercial markets.

• Taylor Wright, JPMorgan's head of operational sustainability, cited Graphyte's proven technology as one reason behind the deal.
• But "equally as important for us is looking for projects that go beyond just delivering carbon benefits," Wright said, citing the wildfire prevention and local economic growth potential.

Zoom in: A 2022 wildfire near Flagstaff — where the facility will be based — destroyed 30 homes and forced evacuations, highlighting the risks the startup could help address as one benefit of its work.

• "We can create a market for that [forest] material by converting it into durable carbon removal," said Barclay Rogers, founder and CEO of Graphyte.

Between the lines: Climate startups are increasingly emphasizing co-benefits like wildfire prevention and jobs as federal support wanes.

• "I say this in DC a fair bit: Say what you will about climate change, but I think we can all get behind the idea that you need to reduce the wildfire risk in the West," Rogers said. "And we can create jobs in rural places in doing so."

By the numbers: The 60,000-ton deal is the largest publicly known purchase for Graphyte, and roughly in line with mid-sized carbon removal agreements JPMorgan has struck with other suppliers.

• Graphyte aims to remove up to five million tons of carbon dioxide by 2030.

Reality check: Those amounts are still tiny relative to the broader climate challenge: the U.S. emits roughly 5 billion tons of CO2 each year.

• Smaller deals like these are seen as critical early steps in scaling a nascent industry that would need to grow dramatically to make a meaningful dent.

Friction point: The lack of federal policy is making scaling harder, said Rogers, noting that an existing tax credit for capturing carbon doesn't apply to methods like Graphyte's.

• "We're muscling our way through without any federal policy support," Rogers said. "Of course, it would be helpful if there were leveled playing fields."

Zoom in: JPMorgan remains an outlier among banks in directly buying carbon removal credits, a market still dominated by tech companies while federal policy lags.

• "JPMorgan is going to do what's right for our business, our clients regardless of the federal policy on these issues," Wright said. "We've maintained consistency despite different changes with the policy."

What's next: The Arizona facility should begin operating next year.

What we're watching: This summer's wildfire season, which could be severe after a warm winter in the West.