Microsoft Signs Largest-Ever Permanent Carbon Removal Purchase Agreement
Microsoft announced that it has signed an offtake agreement to purchase 6.75 million metric tons of engineered carbon removal over 15 years, making it the world’s largest permanent carbon removal deal to date.
Microsoft will purchase the carbon removal from the planned AtmosClear bioenergy carbon capture and storage (BECCS) facility near Baton Rouge, Louisiana. The facility, set to begin construction next year and expected to be operational by 2029, will use sustainable materials like sugarcane bagasse to produce clean energy while capturing carbon dioxide for permanent storage or to use in the production of synthetic fuels. AtmosClear is a portfolio company of Houston-based infrastructure firm Fidelis.
Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft, said:
“We are proud to work with Fidelis on this pathbreaking project, which will bring together science, engineering, and commercial innovations to offer a compelling model for carbon removal in the United States. High-quality, durable carbon removal solutions from experienced developers like Fidelis are vital for Microsoft in progressing its goal to become carbon negative by 2030.”
The agreement is Microsoft’s second BECCS deal announced in April, with the combined agreements totalling more than 10 million metric tons. Fidelis estimates that the AtmosClear project will result in over $800 million of investment and approximately 75 permanent and 600 construction jobs, while supporting a revival of forestry management jobs impacted by mill closures in the area.
Daniel J. Shapiro, CEO of Fidelis, said:
“This contract with Microsoft marks a transformative moment for the high-quality, engineered carbon removal market. AtmosClear showcases how proven technologies, paired with sustainable feedstocks like sugarcane bagasse and forest management materials, can deliver meaningful climate impact while providing quality jobs, economic development, and other community benefits. We are proud to build infrastructure in Baton Rouge, a place many of us at Fidelis have called home, that not only removes carbon from the atmosphere but also provides economic opportunity for Louisiana.”