Microsoft Inks 15-Year Pact for 626,000 Tons of Carbon Removal Credits
April 7, 2026
In a significant move to scale up durable carbon dioxide removal (CDR) solutions, Microsoft has entered into a long-term agreement to purchase carbon removal credits from a pioneering bioenergy with carbon capture and storage (BECCS) project in Canada. The deal underscores the tech giant's strategy to invest in high-quality carbon removal to meet its ambitious climate goals and signals growing momentum for large-scale, verified CDR infrastructure.
The agreement commits Microsoft to offtake 626,000 tons of carbon removal credits over 15 years from the North Star BECCS project in Saskatchewan. The project is a collaboration between Svante Technologies and the Meadow Lake Tribal Council (MLTC), developed at the MLTC Bioenergy Center. The carbon capture facility will be owned by North Star Carbon Solutions LP, a partnership formed by MLTC and Carbon Alpha, a subsidiary recently acquired by Svante.
Upon reaching full commercial operations, which is targeted for early 2029, the plant is designed to capture and generate up to 90,000 tons of carbon credits annually. The captured carbon dioxide will be transported and permanently stored in a geologic site owned and operated by North Star. The companies emphasized that all credits delivered under this agreement will be independently verified and issued following established carbon removal crediting standards and rigorous monitoring, reporting, and verification (MRV) protocols.
Jeremy Norman, Tribal Chief of the Meadow Lake Tribal Council, highlighted the project's broader significance: “As a Canadian Indigenous-owned BECCS project that is believed to be among the first of its kind, North Star reflects MLTC Nations’ long-standing commitment to land stewardship and sustainable forest management.”
From Microsoft's perspective, the deal is a strategic investment in scaling necessary infrastructure. Phillip Goodman, director of Carbon Removal Portfolio at Microsoft, stated, “To meet our climate goals, we need to help scale solutions that deliver durable storage and are backed by rigorous monitoring and verification. This agreement supports an Indigenous-led collaboration that enables the infrastructure needed to bring durable carbon removal online in Canada, thus creating a pathway for additional projects over time.”
This pact represents Microsoft's latest in a series of investments aimed at building a portfolio of carbon removal options. Previous notable deals include a 2.95-million-ton credit agreement with the Gaia project, a joint venture in Denmark, and backing for Equinor's cross-border Northern Lights carbon transport and storage project in Norway. The North Star agreement further diversifies this portfolio while supporting the development of a novel, Indigenous-led CDR model in North America.
Source: datacenterdynamics
Microsoft Strikes Major Carbon Removal Deal with Indigenous-Led Canadian BECCS Project
