Microsoft has entered into a 15-year agreement with AtmosClear BR, LLC, a Fidelis portfolio company, to purchase 6.75 million metric tonnes of engineered carbon removal through bioenergy with carbon capture and storage (BECCS) – marking the largest deal of its kind globally.
The carbon removal will be sourced from a planned BECCS facility at the Port of Greater Baton Rouge, Louisiana. The plant will utilise sugarcane bagasse and forest management by-products to generate clean energy while capturing an estimated 680,000 metric tonnes of biogenic CO₂ annually for permanent storage or use as feedstock for low-carbon fuels.
Construction of the facility is expected to begin in 2026, with commercial operations targeted for 2029. Fidelis projects over $800 million in investment and the creation of around 600 construction and 75 permanent jobs. The development is also expected to support the local forestry sector, which has suffered from recent mill closures.
“This contract with Microsoft marks a transformative moment for the high-quality, engineered carbon removal market,” said Daniel J. Shapiro, CEO of Fidelis. “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 and economic development.”
Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft, added: “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.”
