Microsoft Signs 3.6 Million Ton Carbon Removal Deal

Microsoft has signed a carbon removal deal with low-carbon fuel firm Beaver Lake Renewable Energy for 3.6 million tons of carbon removal units (CRU) over a 12-year period. The carbon removal units will be delivered from the company’s Beaver Lake biomethanol plant near Pineville, Louisiana, which is located on the site of a former paper mill.

The project represents a total investment of approximately $2.5 billion. It is currently in the engineering and development phase, with construction expected to start in the second half of 2026, and operations slated to begin in 2029. Beaver Lake Renewable Energy is a subsidiary of green methanol firm C2X.

“The Beaver Lake project combines the benefits of bio-methanol production for customers in hard-to-abate sectors with permanent carbon removals,” said Brian Davis, CEO of C2X. “We appreciate the leadership of Microsoft in the engineered carbon removal market and their collaboration to finalize this agreement. We look forward to working with other companies seeking to access biogenic carbon for sequestration as we deliver this project and scale up our portfolio globally.”