Microsoft exceeds Q2 2025 record in purchases of carbon removal credits, driven by its Durable Carbon Removal venture
In Q2 2025, the durable carbon dioxide removal (CDR) market experienced a significant surge, with a total volume of 15.48 million tonnes - its strongest quarter yet [1]. This growth was driven primarily by demand for biochar-based biomass carbon removal solutions and direct air capture (DAC) technologies, as well as innovative sequestration methods like proprietary slurry injection for underground storage [4].
Microsoft emerged as the dominant player in this market, accounting for an impressive 93.8% of the quarter's volumes, or 14.6 million tonnes, across five large deals [1]. These deals included massive procurements from AtmosClear (6.75 million tonnes), CO₂ Limited (3.7 million tonnes), Stockholm Exergi, Exomad Green (1.24 million tonnes of biochar), and Hafslund Celsio [1]. Microsoft also signed a long-term 12-year offtake agreement with Vaulted Deep for up to 4.9 million tonnes, utilizing Vaulted’s proprietary slurry injection technology [2].
Since late 2020, Microsoft has purchased nearly 25 million tonnes of durable CDR, accounting for about 79.5% of the total market volume [1][2]. This makes Microsoft the largest corporate buyer by far in the durable CDR market.
Other notable buyers in Q2 2025 included JPMorgan Chase, which accounted for 63% of the non-Microsoft volume, with 450,000 tonnes of BECCS and 50,000 tonnes of DACCS [1]. Excluding Microsoft, other buyers purchased about 902,000 tonnes in Q2 2025, making it the second-highest quarter for non-Microsoft purchases [1].
The demand for durable CDR is driven by a desire to equal or surpass nature-based credits by 2050, narrowing the current 6:1 ratio to parity by 2030 [2]. Biochar producers dominated the supplier leaderboard, driving nearly 90% of contracted volume via large-scale BECCS or biochar projects [4].
The CDR market, however, faces challenges such as fragile market liquidity, different credit types, price uncertainty, and concerns about delivery risk and credit permanence [1]. Eight CDR companies raised $122 million in funding in Q2 2025, a decrease from Q1's 24 companies and $137 million [1].
Looking ahead, the global CDR market is expected to grow to $50 billion by 2030 and potentially surpass $250 billion by 2035 [1]. Projects like Norway's Longship and Northern Lights facilities are part of the ongoing effort to develop new CO2 storage projects for BECCS [1].
In terms of technology choices, BECCS led in Q2, making up 86% of contracted volume [1]. The largest single deal was for 6.75 million tonnes from AtmosClear, and another 3.7 million tonnes were bought from CO2 Limited [1].
References:
[1] Carbon180. (2025). Q2 2025 Carbon Removal Market Update. Retrieved from https://carbon180.org/q2-2025-carbon-removal-market-update/
[2] Microsoft. (2025). Microsoft's Carbon Negative Commitment. Retrieved from https://www.microsoft.com/en-us/sustainability/carbon-negative/
[3] Direct Air Capture Coalition. (2025). Direct Air Capture Technology. Retrieved from https://directaircapture.org/technology/
[4] Global CCS Institute. (2025). Biochar. Retrieved from https://www.globalccsinstitute.com/technology/carbon-capture-and-storage/biochar/
- The surge in the durable carbon removal market in Q2 2025 was driven by demand for biomass carbon removal solutions like biochar, direct air capture technologies, and innovative sequestration methods.
- Microsoft, with a purchase of nearly 25 million tonnes since late 2020, is the largest corporate buyer in the durable CDR market, accounting for about 79.5% of the total market volume.
- JPMorgan Chase, besides Microsoft, was one of the notable buyers in Q2 2025, accounting for 63% of the non-Microsoft volume with BECCS and DACCS.
- The goal in the CDR market is to equal or surpass nature-based credits by 2050, aiming to narrow the current 6:1 ratio to parity by 2030.
- Looking ahead, the global CDR market is expected to grow to $50 billion by 2030 and potentially surpass $250 billion by 2035, with projects like Norway's Longship and Northern Lights facilities being part of the ongoing development efforts.
