Microsoft has signed a long-term carbon removal agreement with low-carbon fuels developer Beaver Lake Renewable Energy, securing 3.6 million tonnes of carbon removal units (CRUs) over a 12-year period.
The CRUs will be generated by Beaver Lake’s planned biomethanol facility near Pineville, Louisiana, located on the site of a former paper mill. The project will convert forestry residues into bio-methanol while capturing and permanently storing the biogenic carbon dioxide produced during the process. The company estimates the plant will produce more than 500,000 tonnes of biomethanol each year and capture around one million tonnes of CO₂ annually.
The project represents an investment of approximately $2.5 billion and is currently in the engineering and development phase. Construction is expected to begin in the second half of 2026, with operations targeted for 2029. Beaver Lake Renewable Energy is a subsidiary of green methanol developer 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, chief executive of C2X. “We appreciate Microsoft’s leadership in the engineered carbon removal market and its collaboration in finalising this agreement. We look forward to working with other companies seeking access to biogenic carbon for sequestration as we deliver this project and scale our portfolio globally.”
Under the agreement, each CRU represents one tonne of CO₂ removed. Beaver Lake said all lifecycle emissions associated with the project will be accounted for and deducted to ensure net carbon removal, with carbon benefits allocated between biomethanol production and CRUs to avoid double-counting.
“The BLRE project provides a unique opportunity for large-scale carbon removal while supporting wider decarbonisation through green methanol production,” said Phillip Goodman, director of Microsoft’s carbon removal portfolio. “We value the C2X team’s technical and commercial expertise, as well as its commitment to sustainable biomass sourcing, rigorous carbon accounting and engagement with the local community.”
The project has been registered on a registry endorsed by the International Carbon Reduction and Offset Alliance (ICROA) and will be verified by an independent third party.
The deal adds to Microsoft’s growing portfolio of carbon removal agreements. Recent transactions include a 300,000-tonne removal deal with industrial mineralisation company Arca, a 28,900-tonne agreement with enhanced rock weathering firm Undo, a 2.95 million-tonne purchase from a carbon capture and storage project in Denmark, a 2.6 million-tonne deal with Agoro Carbon Alliance, and a 44,000-tonne agreement with biochar producer Carba.
