Microsoft has committed to purchasing 626,000 tonnes of carbon removal credits annually for the next 15 years from a BECCS project in Saskatchewan, Canada, signifying its long-term engagement with engineered carbon removal technology.

These credits will be produced through the North Star project, developed by Svante Technologies, in collaboration with the Meadow Lake Tribal Council (MLTC), an Indigenous organization that represents multiple First Nations bands.

This contract with Microsoft marks the first time Microsoft has engaged in a BECCS project for carbon removal credits in Canada. It can also be regarded as one of the first Indigenous-owned BECCS projects in Canada.

North Star Project will be constructed at the present MLTC Bioenergy Centre, where renewable energy is generated by using biomass waste collected from the local forestry operations. The plant will be equipped with a carbon capture technology in order to capture the emissions resulting from energy production and store them underground.

The project will produce up to 90,000 tonnes per year when running at maximum capacity through carbon removal credits. This carbon dioxide is to be transported to an appropriate geological formation, thus forming a carbon removal value chain that includes capture, transport, and storage.

The credits provided to Microsoft would be subjected to monitoring, reporting, and verification in order to guarantee their durability and reliability in terms of carbon removal services.

Project construction is anticipated to begin after the final investment decision. The first operational period is planned for early 2029. Employment opportunities will also arise during the development of the project.

The transaction can be viewed as part of the ongoing trend in growing interest of corporations in carbon removal credits. For instance, Microsoft has been increasing its supply agreements for removal credits with the aim of achieving its carbon-negative goals by 2030.

Although BECCS and other carbon capture systems have been identified as key technologies in cutting down emissions, the commercialization of such technologies will require proper infrastructure, cost-effectiveness, and regulatory policies. The North Star initiative is likely to help this nascent industry through the integration of carbon storage with renewable energy production.