Microsoft said on Thursday it will purchase 3.6 million carbon removal credits from a biofuels facility in Louisiana owned by C2X, adding to a growing portfolio of long-term carbon removal agreements tied to its climate commitments.
Details of the C2X Agreement
The C2X plant is scheduled to begin operations in 2029. It will convert forestry waste into methanol, a fuel that can be used in shipping and aviation and as a feedstock for chemical manufacturing. The facility is expected to produce more than 500,000 metric tons of methanol annually.
As part of the process, about 1 million metric tons of carbon dioxide will be captured and permanently stored, most likely underground. The carbon removal credits purchased by Microsoft are tied to that captured and stored carbon.
Part of a Broader Carbon Removal Strategy
The agreement follows several other large carbon removal purchases Microsoft has made over the past year. These include a 4.9 million metric ton deal with Vaulted Deep, a 3.7 million metric ton agreement with CO280, and a 7 million metric ton purchase from Chestnut Carbon.
Microsoft has increasingly relied on such contracts as it expands its global data center operations, which have increased the company’s overall energy demand.
Climate Commitments and Data Center Growth
Microsoft has pledged to remove more carbon from the atmosphere than it emits by 2030. The company has acknowledged that the rapid buildout of data centers has made that target more difficult to meet.
While Microsoft continues to secure large amounts of renewable and nuclear power to support its operations, carbon removal purchases are intended to address emissions that cannot be eliminated in the near term, including future fossil fuel use associated with energy generation and infrastructure.
Featured image credits: Wikipedia
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