Biochar: Microsoft & Exomad to Cut a Million Tonnes of CO₂
AI and data centres are scaling up, requiring large amounts of energy and increasing the carbon emissions of tech giants.
Microsoft and Exomad Green have agreed a 10-year deal to eliminate at least 1.24 million tonnes of CO₂ using biochar, a carbon-rich substance derived from forestry waste.
The deal, now the largest biochar carbon removal agreement in history, strengthens the growing role of energy-linked carbon removal in climate action strategies.
Carbon removal at scale with traceable outcomes
Carbon removal, essential to keeping global warming within 1.5°C or 2°C above pre-industrial levels, is now seeing industrial-scale uptake.
The Intergovernmental Panel on Climate Change says negative emissions, removing more carbon than is emitted, are required in most warming limit scenarios.
Microsoft has partnered with Exomad Green, a leading supplier of biochar carbon removal (BCR) credits, to advance this need.
The agreement is not only the largest BCR contract ever finalised, but also one of the largest durable carbon removal (CDR) deals globally.
Biochar is a stable, carbon-rich material created by heating biomass without oxygen.
When applied to soil, it sequesters carbon for centuries and improves soil health.
To verify and monitor results, the contract integrates Carbonfuture’s MRV+ system.
This platform ensures emissions reductions are digitally tracked, independently audited and aligned with the Puro.earth Biochar Methodology.
“This agreement sets a new precedent for how quality is built into carbon removal from day one,” says Hannes Junginger-Gestrich, Chief Executive Officer of Carbonfuture.
“By embedding dMRV into the contract, this deal delivers the transparency and traceability the market needs as it scales toward megatonnes of impact.”
Exomad Green has already sequestered more than 120,000 tonnes of CO₂ and holds a 27% market share in durable CDR deliveries as of April 2025.
The deal helps the company progress toward its target of removing one megatonne of CO₂ per year by 2027.
Energy, waste and soil: a circular model for climate and community
The partnership hinges on sustainable biomass use.
Exomad Green sources waste biomass, mainly sawmill residues, from forests.
Instead of incinerating this waste, which contributes to local air pollution and fire risk, the company processes it into biochar.
A dedicated Forest Monitoring Centre has been established to ensure that all feedstock meets environmental and ethical standards.
The centre forms part of a long-term strategy for traceable, ethical carbon removal.
“This deal raises the bar for sustainable biomass sourcing,” the company states.
Biochar created under this agreement is applied to soil in Bolivia’s Concepción and Riberalta regions, supporting agricultural output and benefiting more than 250,000 people.
Improved soil quality, higher productivity and less air pollution from burning waste are all direct co-benefits of this carbon removal model.
“Today’s historic deal is testament to the relationship we have formed between Microsoft and Exomad Green, powered by Carbonfuture’s dMRV,” explains Diego Justiniano, President of Exomad Green.
“Microsoft has shown true climate leadership and commitment by seizing the immediate potential of biochar as a carbon removal solution that is measurable and scalable, while demonstrating significant co-benefits across communities and in improving soil quality.”
Expanding infrastructure to meet carbon targets
Microsoft sees biochar as a high-quality CDR pathway, matching its climate goals with measurable impact.
The tech giant first collaborated with Exomad Green in December 2023, buying 32,000 tonnes of BCR credits. The current 10-year deal vastly expands on that relationship.
“Microsoft is pleased to build on our relationship with Exomad Green and Carbonfuture to deliver high-quality, high-impact, and high-integrity durable CDR through biochar,” says Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft.
“We value Exomad Green’s commitment to high standards for biomass sustainability and traceability through its establishment of a new Forest Monitoring Center and recognise biochar’s significant co-benefits for community and soil quality in addition to its carbon removal potential.”
To support growing demand, Exomad Green has doubled capacity at its facilities in Concepción and Riberalta and is building a third site, with two more planned.
These developments are crucial for scaling biochar’s use in durable carbon removal and enhancing its role in climate mitigation efforts.
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