Microsoft signs 650,000-ton carbon removal deal, ending market pause fears

Microsoft signed a seven-year agreement with Danish energy producer BioCirc to purchase 650,000 tons of carbon removal credits. The project will capture and store biogenic CO2 from five of BioCirc’s biogas plants. Initial deliveries are scheduled for the second half of 2026.

This contract marks Microsoft’s first major carbon deal since reports suggested a pause in procurement last month. Chief Sustainability Officer Melanie Nakagawa previously stated the company might adjust its procurement pace rather than end the program. The BioCirc agreement confirms the continuation of Microsoft's long-term sustainability strategy.