In the United States (US), C2X Ltd has announced that it, through its subsidiary Beaver Lake Renewable Energy LLC (BLRE), has signed a long-term agreement with Microsoft for the sale and purchase of high-quality engineered carbon removal units (CRUs) from its Beaver Lake project in Louisiana.
The majority owner of SunGas Renewables Inc. (SunGas), the parent company of Beaver Lake Renewable Energy (BLRE), C2X is majority controlled by the A.P. Moller Group with ENEOS, Japan’s largest integrated energy company, as a minority shareholder.
Repurpose a former paper mill site
C2X is developing the BLRE bio-methanol plant near Pineville, Louisiana (LA), on the site of a former paper mill.
The facility is designed to convert locally and sustainably sourced forestry residues into bio-methanol and biogenic carbon dioxide (bioCO2) that will be subsequently captured.
In addition to producing over 500,000 tonnes of bio-methanol annually at full scale for global and US customers in the shipping, aviation, chemicals, and industrial sectors, it will capture and store around 1 million tonnes of CO2 annually.
Once operational, it will deliver 3.6 million high-quality engineered CRUs to Microsoft over 12 years.
The Beaver Lake project combines the benefits of bio-methanol production for customers in hard-to-abate sectors with permanent carbon removals. We appreciate the leadership of Microsoft in the engineered carbon removal market and their collaboration to finalize this agreement. We look forward to working with other companies seeking to access biogenic carbon for sequestration as we deliver this project and scale up our portfolio globally, said Brian Davis, CEO of C2X.
Ensuring net-carbon removal
Under this agreement, BLRE will deliver CRUs, each representing one tonne of carbon dioxide that has been durably removed from the atmosphere and permanently stored in secure geologic formations in Louisiana.
All associated lifecycle emissions—including those from relevant biomass sourcing, facility operations, and downstream transportation— will be accounted for and subtracted to ensure net carbon removal.
Any carbon benefits will be allocated between the bio-methanol and CRUs to ensure no double-counting.
The project will be registered, and CRUs ultimately be issued on an ICROA-endorsed registry, which includes verification by an independent third-party.
The project will additionally follow practices to ensure sustainable biomass sourcing, including alignment with the principles outlined in EU RED III.
The BLRE project provides a unique opportunity for large-scale carbon removal, while driving broader decarbonization initiatives through green methanol production. We value the technical and commercial expertise of the C2X team, which has demonstrated commitment to sustainable biomass sourcing, rigorous carbon accounting, and thoughtful engagement of the project’s surrounding community, stated Phillip Goodman, Director of Carbon Removal Portfolio at Microsoft.
Support the forestry industry
With an estimated total investment of approximately US$2.5 billion, BLRE is expected to create up to 1,150 construction jobs and more than 600 direct and indirect jobs in the local community when fully operational.
The project will also support the forestry industry in Louisiana, which has been impacted by closures of paper and pulp mills in recent years.
It will also help to underpin substantial investments in CO2 transportation and sequestration in Louisiana.
Following completion of engineering and development, construction is expected to start in the second half of 2026, and operations are expected to commence in 2029.
