Microsoft has signed a new carbon dioxide removal (CDR) deal, this time with C2X—a company that supplies low-carbon fuels and feedstocks for a number of hard-to-abate industries.
Under the agreement, Microsoft is investing in 3.6 million metric tons of CDR to be delivered by C2X over a period of 12 years.
The credits will be generated via C2X’s Beaver Lake project in Louisiana that will process forestry residue to convert it into bio-methanol and biogenic CO2.
As explained by C2X, the bio-methanol will be offered to international and US customers active in the shipping, aviation, chemicals, and industrial sectors, while the biogenic CO2 will be permanently stored in secure geologic formations in Louisiana.
The project, located at a former pulp and paper production facility near Pineville, Louisiana, is expected to produce over 500,000 metric tons of bio-methanol annually while capturing and storing around 1 million metric tons of CO2 each year.
Through this initiative, C2X will help dispose of locally and sustainably sourced forestry residues, working with an ICROA-endorsed registry to issue high-integrity carbon credits verified by an independent third party.
To ensure the biomass is sourced sustainably, the project will follow vetted practices, including steps aligned with the principles provided in EU RED III.
C2X has shared that the Beaver Lake project is expected to begin with construction in the second half of 2026, slated to launch operations in 2029.
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Operating with an estimated total investment of approximately $2.5 billion, this project will create up to 1,150 construction jobs and over 600 other employment opportunities in this region, while supporting the Louisiana forest industry and catalyzing CO2 transportation and sequestration investments in the state.
Phillip Goodman, Director of the Carbon Removal Portfolio at Microsoft, commented:
“The BLRE project provides a unique opportunity for large-scale carbon removal while driving broader decarbonization initiatives through green methanol production. We value the technical and commercial expertise of the C2X team, which has demonstrated commitment to sustainable biomass sourcing, rigorous carbon accounting, and thoughtful engagement of the project’s surrounding community.”
Read more: Microsoft Purchases Nearly 300,000 Tonnes Of Durable CDR From Arca
