【AI前沿】Microsoft’s carbon-removal plans aren’t dead after all

Microsoft is purchasing 650,000 metric tons of carbon-removal credits from startup BioCirc, the company said today.As carbon-removal deals go, it’s not a big buy. But this one is notable because last month,tworeportssaid the tech giant was pausing its carbon-removal deals.BioCircconfirmed for TechCrunch that the purchase agreement was signed in May, weeks after Microsoft reportedly paused new deals.For the carbon-removal industry — and the startups that depend on it — there’s a big difference between a pause and a recalibration. Microsoft is reportedly responsible formore than 90%of the carbon-removal credit market, meaning its purchasing decisions alone can determine whether young companies in the space survive.Microsoft repeatedly denied that it had paused its carbon-removal purchases. “Our carbon removal program has not ended,” Melanie Nakagawa, chief sustainability officer at Microsoft, told TechCrunch in a statement. “At times we may adjust the pace or volume of our carbon removal procurement as we continue to refine our approach toward sustainability goals.”The new deal generates carbon-removal credits from five BioCirc biogas projects. The biogas plants take biomass waste — frequently from agriculture — and use industrial bioreactors to turn it into methane and carbon dioxide. BioCirc captures the carbon dioxide and stores it in an underground reservoir offshore. The methane is then burned in a power plant.Microsoft’s sustainability goals have been strained by the company’s push into AI. To power its data centers in Texas, Microsoft last month said it wasworking with Chevron and Engine No. 1to build a natural gas power plant in the state that could eventually generate 5 gigawatts of electricity. Emissions from that project alone promise to dwarf the deal with BioCirc.Internally, Microsoft employees have also been debating whether toabandon the company’s goalof matching zero-emissions electricity with its energy use on an hourly basis. Today, the company matches on an annual basis. That approach gives Microsoft more flexibility to, say, use more natural gas to power its data centers at night, but it also makes the company’s clean energy claims harder to verify.If Microsoft continues to pursue fossil fuel power plants, it’ll need to ramp up its carbon-removal purchases to meet its 2030 target of becoming a carbon-negative company (one that removes more greenhouse gases from the atmosphere than it generates).Last year, Microsoft signedseveraldealsworth millions of tons of carbon-removal credits. The program’s reported pauseset off alarm bellsthroughout the carbon-removal industry, which is still in its infancy.The new deal suggests that Microsoft is, in fact, recalibrating its carbon-removal program — not abandoning it. Whether that remains true as AI drives its energy consumption higher is something the industry will be watching.Topicsbiogas,carbon credits,carbon removal,Climate,Exclusive,MicrosoftWhen you purchase through links in our articles,we may earn a small commission. This doesn’t affect our editorial independence.Tim De ChantSenior Reporter, ClimateTim De Chant is a senior climate reporter at TechCrunch. He has written for a wide range of publications, including Wired magazine, the Chicago Tribune, Ars Technica, The Wire China, and NOVA Next, where he was founding editor.De Chant is also a lecturer in MIT’s Graduate Program in Science Writing, and he was awarded a Knight Science Journalism Fellowship at MIT in 2018, during which time he studied climate technologies and explored new business models for journalism. He received his PhD in environmental science, policy, and management from the University of California, Berkeley, and his BA degree in environmental studies, English, and biology from St. Olaf College.You can contact or verify outreach from Tim by [email protected] BioMay 27Athens, GreeceStrictlyVC Athens is up next. Hear unfiltered insights straight from Europe’s tech leaders and connect with the people shaping what’s ahead. Lock in your spot before it’s gone.REGISTER NOWMost PopularGoogle Search as you know it is overSarah PerezElon Musk has lost his lawsuit against Sam Altman and OpenAITim FernholzUsers turn to jailbreaking their older Kindles as Amazon ends supportLauren ForristalOpenAI launches ChatGPT for personal finance, will let you connect bank accountsIvan MehtaUS orders travelers on Air Force One to throw away gifts, pins, and burner phones after China tripLorenzo Franceschi-BicchieraiOpenAI is reportedly preparing legal action against Apple; it wouldn’t be the first partner to feel burnedConnie LoizosHow to turn off Instagram’s new Instants feature and retract photos you accidentally sharedAisha Malik