Microsoft revives carbon removal plans after pause
▼ Summary
– Microsoft purchased 650,000 metric tons of carbon-removal credits from startup BioCirc, a deal signed in May after the company reportedly paused such purchases.
– Microsoft denied pausing its carbon-removal program, stating it may adjust the pace or volume of procurement as it refines its sustainability approach.
– The deal generates credits from five BioCirc biogas projects, which capture CO₂ from biomass waste and store it underground offshore.
– Microsoft’s push into AI has strained its sustainability goals, including a new natural gas power plant in Texas that will produce emissions far exceeding the BioCirc deal.
– The purchase signals a recalibration of Microsoft’s carbon-removal program, not an abandonment, but its future depends on how AI-driven energy growth affects its 2030 carbon-negative target.
Microsoft has quietly resumed its carbon-removal purchasing strategy, announcing today that it is acquiring 650,000 metric tons of carbon-removal credits from the startup BioCirc. While the volume is modest compared to previous deals, the timing is significant: it comes just weeks after reports surfaced that the tech giant had paused new carbon-removal agreements.
The purchase agreement was finalized in May, BioCirc confirmed to TechCrunch, contradicting the narrative of a full stop. For the carbon-removal industry, which relies heavily on Microsoft’s buying power, the distinction between a pause and a recalibration is critical. Microsoft is estimated to account for over 90% of the carbon-removal credit market, meaning its decisions can make or break emerging companies in the space.
Microsoft has consistently denied halting its carbon-removal efforts. “Our carbon removal program has not ended,” said Melanie Nakagawa, Microsoft’s chief sustainability officer, in a statement to TechCrunch. “At times we may adjust the pace or volume of our carbon removal procurement as we continue to refine our approach toward sustainability goals.”
The BioCirc deal generates credits from five biogas projects. These facilities convert agricultural biomass waste into methane and carbon dioxide using industrial bioreactors. BioCirc then captures the CO2 and stores it in an offshore underground reservoir, while the methane is burned for electricity generation.
Microsoft’s sustainability ambitions are increasingly strained by its aggressive push into artificial intelligence. To power its Texas data centers, the company recently partnered with Chevron and Engine No. 1 to build a natural gas plant capable of generating up to 5 gigawatts of electricity. The emissions from that single project could easily surpass the carbon savings from the BioCirc deal.
Internally, Microsoft employees have debated whether to abandon the company’s goal of matching zero-emissions electricity on an hourly basis. Currently, Microsoft matches on an annual basis, which offers more operational flexibility , such as using natural gas at night , but makes its clean energy claims harder to verify.
If Microsoft continues pursuing fossil fuel power plants, it will need to significantly scale its carbon-removal purchases to meet its 2030 target of becoming carbon-negative , meaning it removes more greenhouse gases than it emits.
Last year, Microsoft signed several large-scale carbon-removal deals totaling millions of tons. The reported pause sent shockwaves through the fledgling carbon-removal industry. This new agreement suggests the company is recalibrating, not abandoning, its program. Whether that holds true as AI drives energy demand higher is a question the entire industry will be watching closely.
(Source: TechCrunch)
