Microsoft has entered a five-year agreement with Carba, a Minneapolis-based biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More firm, to purchase 44,000 tons of carbon removal credits. Under the terms, Carba will provide Microsoft with biochar-based credits starting in 2025.

Carba specializes in converting organic waste into stable biocarbon using a novel pyrolysisPyrolysis is a thermochemical process that converts waste biomass into bio-char, bio-oil, and pyro-gas. It offers significant advantages in waste valorization, turning low-value materials into economically valuable resources. Its versatility allows for tailored products based on operational conditions, presenting itself as a cost-effective and efficient More technology that employs a thermal battery. The resulting biochar will be buried in landfills as an alternative daily cover, which Carba claims can prevent degradation and offer additional environmental benefits. These may include acting as an activated carbonActivated carbon is a form of carbon that has been processed to create a vast network of tiny pores, increasing its surface area significantly. This extensive surface area makes activated carbon exceptionally effective at trapping and holding impurities, like a molecular sponge. It is commonly More filter to reduce odors, absorb gas pollutants, and remediate contaminants.

According to Carba CEO Andrew Jones, the company’s fully integrated approach to biomassBiomass is a complex biological organic or non-organic solid product derived from living or recently living organism and available naturally. Various types of wastes such as animal manure, waste paper, sludge and many industrial wastes are also treated as biomass because like natural biomass these More sourcing, processing, and storage enables rapid scaling while potentially delivering community co-benefits. Microsoft’s Brian Marrs, senior director for Energy & Carbon Removal, stated that Carba’s method presents a scalable, cost-effective climate solution, combining supply chain, production, and storage at a single site.

Carba was founded in 2021 and received a $7 million grant from the U.S. Department of Energy for a Carbon Negative Shot Pilot. Its carbon removal methodology is certified by Isometric following public consultation.

This agreement adds to Microsoft’s growing portfolio of carbon removal initiatives. Over the past two years, Microsoft has signed similar deals with firms like The Next 150, Exomad Green, and Carbon Streaming, and in 2025 alone, it has secured millions of tons of carbon removal credits through various partnerships.

Learn More: Microsoft to purchase 44,000 tons of carbon removal credits from biochar firm Carba