Microsoft To Back World's Largest CO2 Removal Project Worth About $800 Million

Microsoft Corp. MSFT has agreed to purchase 6.75 million metric tons of engineered carbon removals over the next 15 years through a new partnership with AtmosClear BR, LLC, a portfolio company of Fidelis.

The agreement represents the most substantial deal for permanent carbon removal ever signed.

The initiative leverages bioenergy with carbon capture and storage (BECCS) technology and is tied to a major carbon capture project planned for Louisiana.

“This contract with Microsoft marks a transformative moment for the high-quality, engineered carbon removal market,” said Fidelis CEO Daniel J. Shapiro.

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AtmosClear intends to construct a BECCS facility at the Port of Greater Baton Rouge. The facility will generate clean energy by processing renewable materials such as sugarcane residue and forest trimmings.

The site is expected to sequester approximately 680,000 metric tons of biogenic carbon dioxide annually. The captured carbon will either be stored underground or repurposed into low-carbon fuel and feedstocks.

Construction is anticipated to begin in 2026, with commercial activity targeted for 2029. The project will funnel over $800 million in financing and is projected to produce around 600 construction roles and 75 permanent jobs.

“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. 

It is also expected to revitalize forest management employment, which has been negatively affected by recent mill shutdowns in the area.

The deal supports Microsoft’s aim to be carbon-negative by 2030, reducing the company’s greenhouse gas (GHG) emissions by more than half and removing the rest.

Price Action: MSFT shares traded higher by 0.26% at $388.80 in premarket at last check Tuesday.

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