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Microsoft Carbon Removal Purchase: 3.6 Million Metric Tons

December 12, 2025
Microsoft Carbon Removal Purchase: 3.6 Million Metric Tons

Microsoft's Investment in Carbon Removal

On Thursday, Microsoft revealed its agreement to purchase 3.6 million carbon removal credits. These credits originate from a biofuels facility located in Louisiana and operated by C2X.

The plant is projected to commence operations in 2029. It will convert forestry byproducts into methanol, a versatile fuel source.

Methanol Production and Carbon Capture

Methanol produced at the facility has multiple applications, including powering maritime vessels and aircraft. It also serves as a key ingredient in the production of various chemicals.

The facility’s total methanol output is expected to exceed 500,000 metric tons. Crucially, the process will involve the capture and sequestration of approximately 1 million metric tons of carbon dioxide, most likely through underground storage.

Expanding Microsoft’s Carbon Removal Portfolio

This acquisition represents one in a series of substantial carbon removal purchases made by Microsoft recently. These include a 4.9 million metric ton deal with Vaulted Deep.

Further agreements involve a 3.7 million metric ton commitment to CO280 and a 7 million metric ton purchase from Chestnut Carbon.

Addressing Carbon Footprint Growth

Microsoft’s ambitious growth in data center infrastructure has presented challenges to its 2030 carbon negative goal. This goal aims to remove more carbon from the atmosphere than the company emits.

While Microsoft actively procures significant volumes of renewable energy and nuclear power, investments in carbon removal technologies are vital. These purchases will serve to counterbalance anticipated emissions from fossil fuel sources.

These carbon renewal purchases are designed to help offset future fossil fuel emissions.

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