Microsoft has announced the world's largest carbon removal agreement to date, partnering with AtmosClear, a portfolio company of Fidelis. The 15-year deal will see Microsoft purchase 6.75 million metric tons of engineered carbon removal, setting a new benchmark for the carbon capture industry.

The ambitious project centers around a new Bioenergy with Carbon Capture and Storage (BECCS) facility being developed by AtmosClear at the Port of Greater Baton Rouge in Louisiana. Utilizing sustainable feedstocks such as sugarcane bagasse and forest trimmings, the facility is designed to generate clean energy while capturing approximately 680,000 metric tons of biogenic carbon dioxide annually. This captured CO2 will either be permanently stored underground or used as a feedstock to produce low-carbon synthetic fuels like renewable natural gas.

Daniel J. Shapiro, CEO of Fidelis, hailed the agreement as a "transformative moment for the high-quality, engineered carbon removal market," emphasizing the potential for "meaningful climate impact while providing quality jobs, economic development, and other community benefits."

Construction of the $800 million facility is slated to commence in 2026, with commercial operations expected to begin in 2029. Fidelis anticipates the project will generate around 75 permanent jobs and 600 construction roles.

Brian Marrs, Microsoft’s Senior Director of Energy & Carbon Removal, underscored the importance of this partnership for the tech giant's environmental targets. “High-quality, durable carbon removal solutions from experienced developers like Fidelis are vital for Microsoft in progressing its goal to become Carbon Negative by 2030,” he stated. He also highlighted the project's potential to create jobs in agricultural areas and establish Louisiana as a leader in carbon management research and applied technology.

The announcement comes amidst some political uncertainty surrounding U.S. carbon removal incentives. The 45Q federal tax credit, which provides $85 per ton for carbon sequestration, has been a crucial factor in the viability of such projects.

The AtmosClear project represents a significant step forward in demonstrating the potential of engineered carbon removal technologies to address climate change while simultaneously fostering economic growth and creating jobs in local communities. This landmark deal between Microsoft and AtmosClear signifies a growing commitment from major corporations to invest in innovative solutions for a sustainable future.