Carbon removal provider Exomad Green announced a new deal with Microsoft, with the tech giant agreeing to purchase at least 1.24 million tonnes of carbon removal credits over ten years, generated from Exomad Green’s biochar projects in Bolivia.
The transaction marks the largest-ever biochar carbon removal purchase agreement globally, and one of the largest durable carbon dioxide removal (CDR) agreements of any type to date, according to Exomad Green.
The agreement also integrates digital Monitoring, Reporting and Verification (dMRV) from CDR data solutions provider Carbonfuture to track and verify the carbon removed under the deal. The transaction follows an earlier 32,000 tonne carbon removal agreement between Microsoft, Exomad Green and Carbonfuture announced in 2023.
According to Exomad Green, the large-scale deal signals the industrial-scale readiness of biochar as a carbon removal solution, and will support the company’s goal of sequestering one million tonnes of CO2 annually by 2027.
Diego Justiniano, CEO of Exomad Green, said:
“Today’s historic deal is testament to the relationship we have formed between Microsoft and Exomad Green, powered by Carbonfuture’s dMRV. Microsoft has shown true climate leadership and commitment by seizing the immediate potential of biochar as a carbon removal solution that is measurable and scalable, while demonstrating significant co-benefits across communities and in improving soil quality.”
Biochar, or biological charcoal, is produced by heating biomass, such as forest residue, wood or crop waste, in the absence of oxygen, creating a stable form of carbon, which when buried in soil enables centuries-long carbon sequestration, in addition to leading to improved soil fertility. Biochar is emerging as an increasingly popular solution for carbon removal, providing a series of benefits and favorable attributes, including the ability to lock carbon for hundreds of years, scalability, with an abundance of biomass available, and low cost relative to other CDR technologies, as well as its agricultural benefits.
Exomad Green currently operates two biochar facilities in Bolivia, which were recently expanded to double capacity, and the company is constructing a third facility, with an additional two sites now in the planning stages. The company’s approach transforms waste biomass from sustainably sourced forestry residues into biochar, which is then delivered to local communities to use in agricultural soil improvement programs.
Carbonfuture’s dMRV system, Carbonfuture MRV+, will be used to ensure that every tonne of carbon removed under the new agreement is tracked across the lifecycle from carbon capture to credit issuance, for verification under the Biochar Methodology set by carbon-crediting platform Puro.earth. Additionally, the companies said that the agreement also includes key features to trace the origin of all biomass to uphold sourcing and traceability sustainability requirements, and product quality assurance, including regular quality testing ensures that the biochar consistently meets international standards for carbon sequestration and soil enhancement.
Hannes Junginger-Gestrich, CEO of Carbonfuture, said:
“This agreement sets a new precedent for how quality is built into carbon removal from day one. By embedding dMRV into the contract, this deal delivers the transparency and traceability the market needs as it scales toward megatonnes of impact.”
The new agreement further solidifies Microsoft’s already substantial lead as the largest corporate buyer of carbon removal credits globally, with carbon dioxide removals (CDRs) platform CDR.fyi estimating Microsoft’s purchases to date at more than 21.6 million tons, well ahead of the Frontier buyers group in second place at 1.25 million tons. The transaction also places Exomad Green in the top 5 CDR suppliers, according to CDR.fyi.
Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft, said:
“Microsoft is pleased to build on our relationship with Exomad Green and Carbonfuture to deliver high-quality, high-impact, and high-integrity durable CDR through biochar. We value Exomad Green’s commitment to high standards for biomass sustainability and traceability through its establishment of a new Forest Monitoring Center and recognize biochar’s significant co-benefits for community and soil quality in addition to its carbon removal potential.”
