Microsoft Backs Major Carbon Removal Project in Louisiana
Microsoft announced Tuesday it has signed a contract for what it claims is the world's largest permanent carbon removal project to date. The Louisiana project will remove 6.75 million metric tons of carbon dioxide over 15 years.
The tech company's greenhouse gas emissions were 29.1 percent higher than 2020 levels last year, with annual emissions reaching 17.2 million tons by the end of 2023. Growing energy demands for artificial intelligence have contributed to this increase.
The bioenergy carbon capture and storage project is being developed by AtmosClear at the Port of Greater Baton Rouge. It will use materials such as sugarcane bagasse and forest trimmings to generate energy while capturing carbon emissions for underground storage.
This agreement supports Microsoft's goal to become carbon negative by 2030. The project comes during uncertainty about U.S. carbon removal projects, which currently benefit from an $85 per ton federal tax credit known as 45Q.
The Trump administration is seeking to reverse many decarbonization incentives established during the Biden administration. Neither Microsoft nor AtmosClear commented on whether the project would continue if the tax credit is reduced or eliminated.
Fidelis, the Texas-based parent company of AtmosClear, expects to use the 45Q tax credit for the carbon sequestration part of the project. The company estimates the project will bring over $800 million in investment and create approximately 75 permanent jobs and 600 construction positions.
The project could also help revive forestry management jobs in the region affected by recent mill closures. Construction is scheduled to begin in 2026, with operations starting in 2029.
The carbon capture initiative comes as major tech companies pursue various environmental and computing advances. Nvidia recently established its Accelerated Quantum Research Center in Boston, combining quantum hardware with AI supercomputing. The center will utilize Nvidia's GB200 NVL72 systems to support quantum computing research and development.
