Microsoft Signs 650,000-Tonne BECCS Carbon Removal Deal with BioCirc

Microsoft has signed a seven-year agreement with Danish biogas producer BioCirc to offtake up to 650,000 tonnes of carbon removal credits generated from BioCirc's bioenergy carbon capture and storage platform. The deal is the first major carbon removal purchase agreement for Microsoft since reports emerged last month that the company had informed suppliers it was pausing procurement.

Under the agreement, BioCirc will deliver 100,000 carbon removal units per year to Microsoft, generated from the capture and permanent geological storage of biogenic CO2 from five of BioCirc's biogas plants. The captured CO2 will be transported and stored in secure geological formations beneath the Danish North Sea. Initial deliveries are set to begin in the second half of 2026 and continue through 2032. BioCirc is one of the largest global biomethane producers, owning and operating eight industrial-scale biogas plants with annual production capacity exceeding 175 million cubic metres.

The deal has significant implications for the carbon removal market, where Microsoft has been by far the dominant buyer, representing approximately 90% of the global market in 2025 according to CDR.fyi. Reports of Microsoft pausing purchases had raised concerns about demand stability for an industry that depends heavily on long-term offtake commitments to finance capital-intensive projects. Chief Sustainability Officer Melanie Nakagawa has since clarified that the carbon removal programme has not ended, though the company may adjust procurement pace and volume as it works toward its goal of becoming carbon negative by 2030.

For BioCirc, the agreement provides commercial validation of its integrated platform combining biogas production, renewable electricity and geological CO2 storage. The BECCS model is viewed as one of the more scalable and cost-competitive forms of durable carbon removal, given that it leverages existing bioenergy infrastructure. The deal also supports the commercialisation of permanent geological carbon storage beneath the North Sea, a storage resource that Norway and Denmark are actively developing as part of European carbon capture and storage infrastructure buildout.

Key figure — 650,000 tonnes of carbon removal credits over the seven-year agreement