Renewable fuels producer C2X announced that it has signed a long-term agreement with Microsoft, with the tech giant committing to purchase 3.6 million tons of carbon removal units (CRUs) from a new low-carbon fuel project in Louisiana.
Founded in 2022, C2X develops and operates low carbon molecule production facilities in strategic locations to supply low carbon fuels and feedstocks to the shipping, chemical, aviation and industrial sectors. The company is majority controlled by the A.P. Moller Group with Japan’s largest integrated energy company ENEOS as a minority shareholder.
The CRUs for the new contract will be generated by C2X subsidiary Beaver Lake Renewable Energy’s planned $2.5 billion bio-methanol plant near Pineville, Louisiana. Located on the site of a former paper mill, the new project is designed to convert locally and sustainably sourced forestry residues into bio-methanol and biogenic CO2 that will be subsequently captured.
At full scale, the new bio-energy with carbon capture and storage (BECCS) project will have the capacity to produce more than 500,000 metric tons of bio-methanol per year, and will capture and store approximately 1 million metric tonnes of CO2 annually.
Under the new agreement, Beaver Lake will deliver CRUs to Microsoft representing CO2 that has been removed and permanently stored in secure geologic formations in Louisiana, with all associated lifecycle emissions – including biomass sourcing, facility operations, and downstream transportation – accounted for and subtracted to ensure net carbon removal, and with the project’s CRUs to be registered and issued on an ICROA-endorsed registry, which includes verification by an independent third-party. C2X added that the project will follow sustainable biomass sourcing projects, including aligning with the principles outlined in EU RED III.
Construction on the project is anticipated to begin in the second half of 2026, with operations expected to start during 2029.
Brian Davis, CEO of C2X, said:
“The Beaver Lake project combines the benefits of bio-methanol production for customers in hard-to-abate sectors with permanent carbon removals. 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.”
The agreement marks the latest in a series of large-scale carbon removal purchases by Microsoft, forming part of the tech giant’s initiative to become carbon negative by 2030, including several BECCS-focused deals by the company this year. According to carbon dioxide removals (CDRs) platform CDR.fyi, the deal further extends Microsoft’s lead as the largest global CDR purchaser by far, at 34.5 million tons, well ahead of the Frontier buyers group in second place at 1.8 million tons.
Phillip Goodman, Director of Carbon Removal Portfolio at Microsoft, said:
“The BLRE project provides a unique opportunity for large-scale carbon removal, while driving broader decarbonization initiatives through green methanol production. 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.”
