Green energy producer BioCirc and Microsoft announced a new 7-year agreement, with Microsoft to offtake credits representing up to 650,000 tons of carbon removal generated from BioCirc’s bioenergy carbon capture and storage (BECCS) platform in Denmark.
The deal marks the first major carbon removal purchase agreement for Microsoft since reports last month indicating that the tech giant has informed carbon credit suppliers that it is pausing its carbon removal purchases. In a subsequent statement by the company, Chief Sustainability Officer Melanie Nakagawa said that the “carbon removal program has not ended,” but acknowledged that while program will continue to form part of its strategy to achieve its climate goals, it “may adjust the pace or volume of our carbon removal procurement.”
A pause by Microsoft could have significant implications on the carbon removal market, which has been driven largely by purchase activity by Microsoft in recent years, with the tech giant by far the largest buyer of carbon removal credits globally, representing approximately 90% of the market in 2025, according to carbon dioxide removals (CDRs) platform CDR.fyi.
Launched in 2021, Denmark-based BioCirc is one of the largest global biomethane producers. The company owns and operates eight industrial-scale biogas plants with an annual production capacity of more than 175 million cubic meters, and also produces renewable electricity co-located with one of its biogas plants.
Under the new agreement, BioCirc will deliver 100,000 carbon removal units (CRUs) to Microsoft per year, generated from the capture and permanent storage of biogenic CO2 from five of BioCirc’s biogas plants, with each CRU representing one metric ton of carbon dioxide that has been durably removed from the atmosphere and permanently stored in secure geologic formations beneath the Danish North Sea through. Initial deliveries under the agreement will begin in the second half of 2026, and continue through 2032.
Bertel Maigaard, Group CEO at BioCirc, said:
“The agreement is a major milestone for BioCirc and a meaningful validation of our approach to delivering durable carbon removal. We are thrilled to work with organizations such as Microsoft that are helping advance the market for durable carbon removal while addressing residual emissions and supporting global climate goals.”
In addition to supporting Microsoft’s ambition to become carbon negative by 2030, the companies said that the new agreement will enable BioCirc to scale its integrated platform combining biogas production, renewable energy, and CO2 capture and storage.
Phillip Goodman, Director of Carbon Removal Portfolio at Microsoft, said:
“The BioCirc project offers a durable and scalable approach to carbon removal while contributing to broader decarbonization of the energy system. High-quality and scalable carbon removal solutions with rigorous carbon accounting, such as BioCirc’s, are critical to the development of a robust global carbon removal market.”
