Microsoft has signed yet another landmark agreement in the realm of CDR (carbon dioxide removal).
The deal with Exomad Green, the world’s top producer of biochar carbon removal (BCR) credits, aims to remove 1.24 million metric tons of carbon dioxide per year over the next decade. This deal sets a record as the greatest BCR purchase amount by volume in history and among the largest transactions across all categories of durable carbon dioxide removal (CDR).
Exomad Green’s approach centers on transforming sustainable forestry residues. This waste or woody biomass would otherwise be burned in open firepits at sawmills. Exomad Green instead transforms it into biochar through a pyrolysis process.
This method not only prevents emissions from incineration but also locks away carbon in a highly stable form. The strategy makes it an effective and durable CDR solution.
According to an analyst report from Prima CarbonZero, the underlying principle driving the deal is transparency. Exomad Green adheres to a multi-layered monitoring framework that enhances credibility and verification. This comes thanks to a state-of-the-art Forest Monitoring Center to oversee the sourcing of biomass.
Moreover, the agreement is underpinned by the contractual use of Carbonfuture MRV+, a leading digital Monitoring, Reporting, and Verification (dMRV) system specifically designed for carbon removal. This system tracks every ton of carbon dioxide through its entire lifecycle—from the point of capture to the issuance of certified credits.
Independent third-party certification is also issued following the Puro Standard. The organization’s oversight ensures that each credit reflects real, measurable, and permanent carbon sequestration.
As this deal takes shape, Exomad Green is also ramping up its operational capacity. The company currently runs biochar production sites in Concepción and Riberalta, both of which recently underwent capacity expansions. A third facility is now under construction, and two additional locations are in planning.
These expansions aim to bring the company closer to its ambitious goal of sequestering 1 million tons of CO₂ annually. Its operational capacity currently sits at around 120,000 tons per year. Accordingly, a near tenfold increase in capacity reflect an immense upswing in the Exomad Green’s sequestration efforts.
This historic partnership with Exomad Green is part of a much broader and increasingly assertive carbon removal strategy by Microsoft.
Earlier this year, the tech giant finalized a separate high-profile deal with CO280, focused on CDR within the pulp and paper sector. Together with this deal, we’re seeing a multi-faceted strategy from Microsoft to decarbonization.
Read More: Microsoft, CO280 Sign Landmark CO2 Deal for CDR in Pulp & Paper
Together, these investments underscore Microsoft’s clear recognition of the urgent need to scale high-quality, verifiable carbon removal solutions.
Rather than placing all its climate objective into a single technological basket, the company is strategically diversifying its portfolio. It is investing in a spectrum of emerging carbon removal methods—from biochar and industrial CDR to nature-based approaches.
The Exomad agreement reflects the scale Microsoft is prepared to pursue in its climate commitments. Beyond this one deal, however, it also sets a benchmark for what high-integrity CDR deals can look like as the market matures. By embedding transparency and independent verification from the outset, Microsoft is helping to build trust and reliability in a sector that is vital to meeting global net-zero targets.
The call to tackle climate change grows louder every day. CDR technology continues to gain serious momentum as a high-potential answer to meeting decarbonization challenges.
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