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

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Why it matters: The purchase signals that the carbon removal industry is pushing ahead despite policy setbacks — and highlights how near-term benefits can help drive deals.

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.

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.