Microsoft has signed the largest permanent carbon removal to date after agreeing to a 15-year deal with bioenergy firm AtmosClear BR for 6.75 million tons of carbon removals.
The removals will be generated from Atmos’ planned bioenergy carbon capture & storage (BECCS) project at the Port of Greater Baton Rouge in Louisiana.
"We are proud to work with Fidelis on this pathbreaking project, which will bring together science, engineering, and commercial innovations to offer a compelling model for carbon removal in the United States," said Brian Marrs, senior director of energy & carbon removal at Microsoft.
The plant plans to use organic materials like sugarcane bagasse and trimmings from “prudent forest management” and burn them to generate energy. The CO2 produced will be captured by an onsite carbon capture unit, which the company says will be utilized for permanent storage or beneficial use cases, such as a feedstock for low-carbon natural gas and other synthetic fuels.
Atmos claims the facility will have the potential to capture up to 680,000 tons of biogenic CO2 per year. Construction on the facility is expected to begin in 2026 and commercial operations in 2029.
Atmos’ parent company Fidelis estimates that the project will comprise more than $800 million of investment, while supporting a revival of forestry management roles across the region.
"AtmosClear showcases how proven technologies, paired with sustainable feedstocks like sugarcane bagasse and forest management materials, can deliver meaningful climate impact while providing quality jobs, economic development, and other community benefits,” said Daniel J Shapiro, CEO of Fidelis.
According to the IEA, BECCS involves capturing and permanently storing CO2 from processes where biomass is converted into fuels or directly burned to generate energy. Because plants absorb CO2 as they grow, this is a way of removing CO2 permanently from the atmosphere.
At present, the BECCS sector plays a marginal role in overall carbon removals. According to the IEA, at present, only two million tons of biogenic CO2 are captured per year, mainly through bioethanol applications.
The removal agreement is Microsoft's second in a matter of weeks, following an agreement with CO280 to purchase 3.685 million tons of CO2 removal over a 12-year period from a carbon capture retrofitted energy from waste plant in the US.
Microsoft has been especially active in the carbon removal market in 2025, inking a total of seven deals so far following the agreement with Atmos.
Earlier this month, the company agreed to purchase 12,000 tons of CO2 removals from Enhanced Rock Weathering company Terradot.
Before this, Microsoft signed three removal agreements with reforestation firms. These included an agreement to remove 1.5 million tons of CO2 in India, a 25-year agreement with Chestnut Carbon to purchase seven million carbon credits, and another 25-year deal in Brazil with Re.green to purchase 3.5 million credits.
