Microsoft has signed a major agreement for what it claims is the world’s largest permanent carbon removal project, committing to eliminate 6.75 million metric tons of carbon dioxide over 15 years.
The deal, revealed on Tuesday, supports the tech giant’s broader goal of becoming carbon negative by 2030.
The carbon capture and storage initiative, led by AtmosClear—a subsidiary of Texas-based Fidelis—will be built at the Port of Greater Baton Rouge. The project will use bioenergy sources such as sugarcane bagasse and forest trimmings to generate energy and capture emissions, which will be stored underground.
Microsoft’s annual greenhouse gas emissions reached 17.2 million tons in 2023, up 29.1% from 2020 levels, driven in part by surging energy demand for artificial intelligence operations.
Fidelis expects the project to attract more than $800 million in investment, create around 75 permanent positions and 600 construction jobs, and help revive forestry-related employment in the region. The project is also expected to benefit from the U.S. federal 45Q tax credit, which provides $85 per ton of sequestered carbon—though the Trump administration is currently seeking to roll back various climate-related incentives in upcoming budget talks.
Construction of the facility is set to begin in 2026, with commercial operations targeted for 2029. Microsoft’s energy and carbon director Brian Marrs said the company values the deal’s focus on economic development in local agricultural communities and sees it as a demonstration of Louisiana’s emerging leadership in carbon management.
Meanwhile, Louisiana officials are lobbying to preserve federal backing for the state’s planned Direct Air Capture hub in Calcasieu Parish, as well as the continuation of the 45Q credit.
