• Microsoft commits to purchasing 3.6 million metric tons of engineered carbon removal over 12 years from a single US project, signaling long-term demand for durable removals.
• The $2.5 billion Beaver Lake project links bio methanol production with permanent CO2 storage, targeting shipping, aviation, and industrial decarbonization.
• The agreement embeds rigorous lifecycle accounting, ICROA-endorsed verification, and alignment with EU RED III sustainability standards.
C2X Ltd., through its subsidiary Beaver Lake Renewable Energy LLC, has signed a long-term agreement with Microsoft for the delivery of 3.6 million metric tons of engineered carbon removal over a 12-year period. The removals will be generated by C2X’s Beaver Lake project, which is currently under development in central Louisiana.
The agreement gives Microsoft access to high-quality engineered carbon removal units, or CRUs, each representing one metric ton of carbon dioxide that has been durably removed from the atmosphere and permanently stored in secure geological formations within the state.
Integrating Carbon Removal With Low-Carbon Fuels
Beaver Lake is designed as a bio-methanol production facility that converts locally and sustainably sourced forestry residues into both bio-methanol and biogenic CO2. The CO2 will be captured and stored underground as part of the carbon removal process.
At full scale, the plant is expected to produce more than 500,000 metric tons of bio-methanol annually, supplying customers across shipping, aviation, chemicals, and industrial sectors where decarbonization options remain limited. In parallel, the facility is designed to capture and store around one million metric tons of CO2 each year.
Under the Microsoft agreement, all lifecycle emissions linked to biomass sourcing, facility operations, and downstream transportation will be fully accounted for and deducted to ensure net carbon removal. Carbon benefits will be allocated between the bio-methanol output and the CRUs to avoid double counting.
The project will be registered on an ICROA-endorsed registry, with CRUs issued only after independent third-party verification. C2X has also committed to sustainable biomass sourcing practices aligned with principles outlined in the EU Renewable Energy Directive III.
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Corporate Demand For Durable Removals
For Microsoft, the agreement adds scale and duration to its growing carbon removal portfolio, reflecting a broader shift among large corporates toward long-term offtake contracts rather than spot-market purchases.
“The BLRE project provides a unique opportunity for large-scale carbon removal, while driving broader decarbonization initiatives through green methanol production,” said Phillip Goodman, Director of Carbon Removal Portfolio at Microsoft. “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.”
The structure of the deal highlights how buyers are increasingly prioritizing engineered removals with permanent storage, transparent accounting, and strong governance frameworks as scrutiny of voluntary carbon markets intensifies.
Investment, Jobs, And Regional Impact
The Beaver Lake project represents an estimated total investment of approximately $2.5 billion. During construction, it is expected to create up to 1,150 jobs, with more than 600 direct and indirect jobs anticipated once the facility is fully operational.
The project is also positioned as a source of economic renewal for Louisiana’s forestry sector, which has been affected by paper and pulp mill closures in recent years. By sourcing forestry residues locally, Beaver Lake aims to provide a new demand stream while supporting broader investments in CO2 transportation and sequestration infrastructure across the state.
“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, CEO of C2X. “We appreciate the leadership of Microsoft in the engineered carbon removal market and their collaboration to finalize this agreement. We look forward to working with other companies seeking to access biogenic carbon for sequestration as we deliver this project and scale up our portfolio globally.”
What Executives And Investors Should Watch
Following completion of engineering and development, construction is expected to begin in the second half of 2026, with operations targeted to commence in 2029.
For corporate buyers, the deal illustrates how long-term offtake agreements can help de-risk large-scale removal projects while locking in future supply. For investors and policymakers, Beaver Lake offers a case study in how carbon removal, industrial decarbonization, and regional economic development can be structured within a single asset.
As demand for durable removals accelerates and regulatory expectations tighten, projects that integrate verifiable storage, credible biomass governance, and industrial-scale economics are likely to shape the next phase of the global carbon removal market.
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