Microsoft purchases 3.6 million metric tons of carbon removal from a bioenergy facility

Microsoft Secures Major Carbon Removal Credits from Louisiana Biofuels Facility

On Thursday, Microsoft revealed plans to acquire 3.6 million carbon removal credits from a Louisiana-based biofuels facility operated by C2X. Scheduled to launch operations in 2029, this plant will convert forestry byproducts into methanol—a versatile substance used as fuel for ships and aircraft, as well as a key ingredient in chemical production. The facility is expected to generate over 500,000 metric tons of methanol annually, while capturing and storing approximately 1 million metric tons of carbon dioxide, most likely through underground sequestration.

Expanding Carbon Removal Initiatives

This latest purchase adds to Microsoft’s growing portfolio of carbon removal agreements over the past year, including deals for 4.9 million metric tons with Vaulted Deep, 3.7 million metric tons with CO280, and 7 million metric tons with Chestnut Carbon. As Microsoft rapidly increases its data center operations, the company faces new challenges in meeting its 2030 commitment to remove more carbon from the atmosphere than it emits. In addition to investing in renewable and nuclear energy, these carbon removal credits are a crucial part of Microsoft’s strategy to counterbalance its future fossil fuel emissions.