- Microsoft commits to purchasing 1 million carbon removal units over 10 years, reinforcing leadership in corporate carbon markets
- Deal accelerates large-scale biochar deployment in the U.S. Midwest, linking climate action with rural economic growth
- Agreement highlights rising demand for durable, verifiable carbon removal solutions with long-term storage
Microsoft has secured a major new supply of durable carbon removal, signing a 10-year agreement with biochar company Liferaft to purchase one million carbon removal units. The deal ranks among the largest biochar-based agreements globally and signals growing confidence in nature-based carbon removal at scale.
The credits will be generated through Liferaft’s facilities in Iowa and Illinois, where agricultural and municipal biomass will be converted into biochar and applied to soil. The process enables long-term carbon storage while improving soil health, offering a dual climate and agricultural benefit.
The agreement forms part of Microsoft’s broader strategy to become carbon negative by 2030 and to remove its historical emissions by 2050. The company remains the largest corporate buyer of carbon removal credits, with a rapidly expanding portfolio of long-term offtake agreements.
Biochar Moves Into the Mainstream
Biochar is gaining traction as a carbon removal solution due to its durability and cost profile. Produced through pyrolysis, which heats biomass in the absence of oxygen, the material stabilises carbon in a form that can remain locked in soils for hundreds of years.
Liferaft’s facilities will source feedstock locally, including agricultural residues and municipal waste, creating a circular system that reduces emissions while supporting regional supply chains. The resulting biochar will be blended with compost and used in approved agricultural applications.
All carbon removal units will be tracked through monitoring, reporting, and verification systems to ensure long-term storage and compliance with stringent buyer requirements. The project will also undergo independent third-party verification before credits are issued.
Jobs, Agriculture, and Community Impact
The agreement places strong emphasis on rural economic development. Liferaft has worked closely with local stakeholders in Iowa to design projects that support job creation and workforce training alongside climate goals.
William Cowell de Gruchy, CEO of Liferaft, said: “We are excited to announce this transformative deal with Microsoft, which enables Liferaft to create (and provide training for) many high quality jobs in rural American communities. We are particularly grateful to the people and leaders of West Liberty, Iowa and Muscatine County, Iowa, for their incredible support over the past year of planning.”
He added: “We are likewise grateful to Microsoft for executing this offtake with us in support of their carbon negative commitment, and to Supercritical for facilitating the offtake. We truly feel that all partners are aligned in our mission here, and that the project will make the planet and the community a better place.”
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Corporate Demand Reshaping Carbon Markets
The deal was facilitated by carbon removal marketplace Supercritical, which supported early-stage project design and helped ensure that Liferaft’s projects met Microsoft’s requirements for scale and verification.
For corporate buyers, the agreement reflects a shift toward high-integrity carbon removal credits that offer measurable and durable climate impact. As scrutiny intensifies around voluntary carbon markets, demand is moving away from short-term avoidance credits toward solutions that permanently remove carbon from the atmosphere.
Phillip Goodman, Director of Carbon Removal at Microsoft, said: “Liferaft has strong plans for putting locally available biomass waste to productive use, generating local jobs, and supporting farmers and land managers. This demonstrates how carbon removal can strengthen agricultural communities, improve land outcomes, and deliver durable climate impact.”
Strategic Implications for Executives and Investors
For executives and investors, the Liferaft agreement highlights a clear direction of travel. Large corporates are securing long-term access to verified carbon removal as part of risk management and climate strategy. Technologies like biochar are emerging as scalable, cost-effective options that can be deployed today, while delivering co-benefits across agriculture and regional economies.
At the same time, projects that combine strong governance, measurable outcomes, and local economic value are gaining priority in both capital allocation and corporate procurement strategies.
As carbon markets mature, agreements of this scale are expected to become more common. The focus is shifting from experimentation to execution, with durable carbon removal increasingly treated as essential infrastructure in the transition to a net-zero economy.
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