Microsoft has entered into a record-breaking carbon removal agreement with AtmosClear, a portfolio company of Fidelis. The tech giant will buy 6.75 million metric tons of engineered carbon removal over a 15-year period, making it the largest deal of its kind to date. This move supports Microsoft’s goal to become carbon-negative by 2030.
The carbon will be captured from a new Bioenergy with Carbon Capture and Storage (BECCS) facility that AtmosClear is developing at the Port of Greater Baton Rouge in Louisiana. Using sustainable feedstocks like sugarcane bagasse and forest trimmings, the facility aims to generate clean energy while capturing 680,000 metric tons of biogenic CO₂ each year.
The project will permanently store the carbon or use it as a feedstock for low-carbon synthetic fuels like renewable natural gas. “This contract with Microsoft marks a transformative moment for the high-quality, engineered carbon removal market,” said Daniel J. Shapiro, CEO of Fidelis.
Construction in 2026, operations in 2029
Construction of the facility is set to begin in 2026. If everything proceeds as scheduled, the site is expected to become commercially operational in 2029. The total investment is projected to exceed $800 million.
Fidelis expects the project will bring about 75 permanent jobs and 600 construction roles. It will also revive forestry management jobs that were impacted by previous mill closures in the region.
“AtmosClear showcases how proven technologies, paired with sustainable feedstocks… can deliver meaningful climate impact while providing quality jobs, economic development, and other community benefits,” Shapiro added.
AtmosClear will use carbon capture technology to ensure that the biogenic carbon dioxide produced from burning biomass is removed from the atmosphere. This will provide a scalable and durable carbon removal model that could be repeated in other parts of the country.
Policy uncertainty and community impact
The deal also comes at a time of political uncertainty. Over the last few years, U.S. carbon removal and sequestration projects have relied on the $85-per-ton 45Q federal tax credit. However, there’s now concern that the Trump administration may seek to roll back these incentives during upcoming budget negotiations.
Fidelis confirmed that it expects to utilize the 45Q tax credit to support the carbon sequestration part of the project. But neither Microsoft nor Fidelis commented on whether the project would still go ahead if those tax credits are cut or removed.
Brian Marrs, Microsoft’s Senior Director of Energy & Carbon Removal, emphasized the value of the project for local communities. “We are proud to work with Fidelis on this pathbreaking project,” he said.
“High-quality, durable carbon removal solutions from experienced developers like Fidelis are vital for Microsoft in progressing its goal to become Carbon Negative by 2030.”
He also pointed out the project’s potential to create jobs in agricultural areas and contribute to making Louisiana a leader in carbon management. “This shows Louisiana’s leadership in becoming a hub for carbon management research and applied technology,” Marrs added.
Meanwhile, Louisiana officials are actively lobbying the U.S. Department of Energy and members of Congress to preserve funding for carbon management projects, including a proposed Direct Air Capture hub in Calcasieu Parish.
The AtmosClear project represents a bold step in engineered carbon removal, showing how a single facility can help mitigate climate change while creating jobs and boosting local economies.