Microsoft's carbon removal plans aren't dead after all | TechCrunch

Microsoft is purchasing 650,000 metric tons of carbon removal credits from BioCirc under an agreement signed in May. The deal comes after reports that Microsoft paused new carbon removal purchases, though Microsoft said its carbon removal program has not ended and that it may adjust procurement pace or volume while refining sustainability goals. The credits come from five BioCirc biogas projects that convert biomass waste into methane and carbon dioxide using industrial bioreactors. BioCirc captures carbon dioxide and stores it in an offshore underground reservoir, while methane is burned in a power plant. Microsoft’s carbon removal efforts face pressure from emissions tied to its AI-driven expansion and related energy projects.

"Microsoft is purchasing 650,000 metric tons of carbon removal credits from startup BioCirc, the company said today. As carbon removal deals go, it's not a big buy. But this one is notable because last month, two reports said the tech giant was pausing its carbon removal deals. BioCirc confirmed for TechCrunch that the purchase agreement was signed in May, weeks after Microsoft reportedly paused new deals."

"Microsoft repeatedly denied that it had paused its carbon removal purchases. "Our carbon removal program has not ended," Melanie Nakagawa, chief sustainability officer at Microsoft, told TechCrunch in a statement. "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 new deal generates carbon removal credits from five BioCirc biogas projects. The biogas plants take biomass waste - frequently from agriculture - and use industrial bioreactors to turn it into methane and carbon dioxide. BioCirc captures the carbon dioxide and stores it in an underground reservoir offshore. The methane is then burned in a power plant."

"Microsoft's sustainability goals have been strained by the company's push into AI. To power its data centers in Texas, Microsoft last month said it was working with Chevron and Engine No. 1 to build a natural gas power plant in the state that could eventually generate 5 gigawatts of electricity. Emissions from that project alone promise to dwarf the deal with BioCirc."

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