Microsoft, Exomad Green ink 1.24 million mt biochar carbon removals pact

Microsoft has agreed a 10-year deal for the removal of almost 1.24 miillion mt of CO2e with Exomad Green through its biochar projects in Bolivia.

This represents the largest-ever biochar removals agreement in terms of volume, the two companies said in a joint statement on May 21.

Technology giant Microsoft has doubled down on its purchases of removal credits to support its goal of becoming carbon-negative by 2030, alongside sourcing 100% zero-emission power for data centers.

This deal builds on previous transactions between the companies, including a 32,000 mt biochar carbon removal credit purchase by Microsoft in December 2023.

Diego Justiniano, CEO of Exomad Green, said this deal will help the developer reach its goal of sequestering 1 million mtCO2e annually by 2027.

Exomad Green is the world's largest biochar producer, currently removing 120,000 mt of CO2e annually with two facilities. Construction is now underway for its third facility, with two additional sites in the planning stages, according to the company's website.

Biochar production is a technological approach in which carbon is captured from the atmosphere through photosynthesis by biomass. The feedstock generally tends to be waste from agricultural fields, which is then processed into CO2 that can be stored long-term in soil or in construction materials.

The developer uses pyrolysis technology to turn sustainably sourced hardwood residues into biochar. The biochar is then added to soil where it remains for hundreds of years while improving soil health.

The credits in this agreement will be certified by the Puro.earth registry while the monitoring, reporting, and verification will be handled by Carbonfuture.

The Platts Tech Carbon Capture price, reflecting biochar credits, was assessed at a three-month high of $148/mtCO2e on May 20, according to data from S&P Global Energy.

Carbon dioxide removal -- or CDR -- refers to climate mitigation strategies that remove CO2 emissions from the atmosphere, as opposed to strategies to avoid such emissions.

CDR encompasses a wide array of approaches, including technology-based methods like direct air capture, biomass carbon removal and storage, enhanced rock weathering, biochar, and also nature-based projects such as afforestation and reforestation.