C2X Ltd. has secured a major vote of confidence in engineered carbon removal. Through its subsidiary, Beaver Lake Renewable Energy LLC, the company has signed a long-term agreement with Microsoft (MSFT) to supply high-quality engineered carbon removal units (CRUs). Under the deal, the Beaver Lake project in Louisiana will deliver 3.6 million CRUs over 12 years, marking one of the largest BECCS-based carbon removal agreements announced to date.
Although the volume is spread over more than a decade, the signal to the market is strong. Microsoft continues to position itself as a leading buyer of durable carbon removals, while C2X strengthens its role as a developer of large-scale, industrial carbon-negative projects.
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.”
C2X Targets Hard-to-Abate Sectors With Clean Fuels
C2X develops, owns, and operates low-carbon molecule production facilities in strategic locations worldwide. These facilities aim to supply shipping, aviation, chemicals, and industrial sectors with low-carbon fuels and feedstocks. The company is majority controlled by the A.P. Moller Group, with Japan’s ENEOS as a minority shareholder, giving it strong backing from established global energy players.
The company is also the majority owner of SunGas Renewables Inc., the parent company of Beaver Lake Renewable Energy. This structure allows C2X to integrate fuel production and carbon removal into a single industrial platform, rather than treating carbon credits as a side activity.
Beaver Lake: From Paper Mill to Climate Infrastructure
The press release mentions that the Beaver Lake project is under development near Pineville, Louisiana, on the site of a former paper mill. The choice of location is strategic. The region has strong forestry resources, existing industrial infrastructure, and access to geological formations suitable for long-term CO₂ storage.
The facility can convert locally and sustainably sourced forestry residues into bio-methanol. At the same time, it will capture the biogenic CO₂ produced during the process. At full scale, Beaver Lake is expected to produce more than 500,000 metric tons of bio-methanol each year for customers in shipping, aviation, chemicals, and industrial markets. In parallel, it plans to capture and permanently store around 1 million metric tons of CO₂ annually.
An Overview of Beaver Lake Facility
This dual-output model—fuel production plus carbon removal—allows the project to improve overall economics while delivering measurable climate benefits.
Phillip Goodman, Director of Carbon Removal Portfolio at Microsoft, highlighted:
“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.”
High-Integrity Carbon Credits Backed by Verification
Under the agreement with Microsoft, Beaver Lake will deliver CRUs, each representing one metric ton of carbon dioxide removed from the atmosphere and permanently stored in secure geological formations in Louisiana.
Crucially, the project will account for all associated lifecycle emissions. These include emissions from biomass sourcing, facility operations, and downstream transportation. C2X will subtract these emissions to ensure that each CRU represents net carbon removal, not just avoided emissions.
In addition, the company will allocate carbon benefits carefully between the bio-methanol produced and the CRUs issued. This step is designed to prevent double-counting, a persistent concern in carbon markets.
The project plans to register with an ICROA-endorsed registry and undergo independent third-party verification. It will also follow sustainable biomass sourcing practices aligned with principles outlined in EU RED III, adding another layer of credibility for corporate buyers.
Why BECCS Is Central to the Deal
Beaver Lake is built around BECCS—Bioenergy with Carbon Capture and Storage. This approach combines renewable biomass use with carbon capture and permanent storage. Because the carbon originates from atmospheric CO₂ absorbed by plants, storing it underground results in negative emissions.
This feature makes BECCS especially attractive to buyers like Microsoft that prioritize durable, long-term removals over short-lived offsets. The 3.6 million-ton agreement highlights BECCS as one of the most mature and scalable engineered removal technologies available today.
Investment, Jobs, and Local Impact
The Beaver Lake project represents an estimated $2.5 billion total investment. During construction, it is expected to create up to 1,150 jobs. Once fully operational, it could support more than 600 direct and indirect jobs in the local community.
Beyond employment, the project may help stabilize Louisiana’s forestry sector, which has faced pressure from paper and pulp mill closures in recent years. By creating long-term demand for forestry residues, Beaver Lake could offer a new revenue stream for landowners and suppliers.
The project is also expected to support broader investments in CO₂ transportation and sequestration infrastructure across Louisiana, potentially laying the groundwork for future carbon capture projects in the region.
Following the completion of engineering and development work, construction is expected to begin in the second half of 2026. C2X currently targets 2029 for the start of operations.
Implications for the Carbon Removal Market
The transaction is likely to influence the fast-evolving carbon removal market. As more companies face regulatory pressure, shareholder scrutiny, and net-zero commitments, demand for high-integrity removals continues to rise.
Microsoft’s role as an anchor buyer is particularly important. Large, long-term offtake agreements can help developers secure financing, accelerate deployment, and ultimately reduce costs. Today, BECCS-based removals typically trade in the range of $100 to $200 per ton, although financial terms for this deal remain undisclosed.
Over time, deals of this scale could help standardize methodologies, improve transparency, and bring greater confidence to the market.
BECCS Market Growth Outlook
Analysts say that the global market for bioenergy with carbon capture and storage reached an estimated $16.2 billion in 2024. It is projected to grow to around $31.5 billion by 2033, reflecting a compound annual growth rate of roughly 8%.
Sectors such as manufacturing, agriculture, and power generation are turning to BECCS to meet climate targets and regulatory requirements. Additionally, technological improvements are also playing a role. Advances in capture efficiency, transport logistics, and storage monitoring are improving project reliability and scalability, making BECCS more attractive to both developers and buyers.
Challenges and the Road Ahead
Despite its promise, BECCS is not without challenges. Large projects often face permitting delays, infrastructure constraints, and local opposition. In Pineville, reactions have been mixed. Some residents welcome job creation and economic revitalization, while others raise concerns about environmental impacts and long-term safety.
Looking ahead, the success of the Beaver Lake project will depend on execution. If C2X delivers as planned—on time, at scale, and with verified removals—it could strengthen confidence in BECCS as a cornerstone of corporate climate strategies.
In that case, the Microsoft–C2X agreement may not just be seen as a large carbon removal deal, but as a key moment in the transition from niche pilot projects to industrial-scale negative emissions.
- READ MORE: Carbon Capture and Storage to Grow 4x by 2030: Is It a Turning Point for Climate Action?
- ALSO READ: Microsoft (MSFT Stock) Emissions Up 23%, Invests in Waste-to-Energy Project to Capture 3 Million Tons of CO₂
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