Microsoft Is Betting Billions on Louisiana Sawdust

Carbon Direct and C2X are turning Louisiana forestry waste into biomethanol and permanent carbon removal at industrial scale

9 Jun 2026

A former Louisiana paper mill, idle for nearly two decades, is about to become one of America's most consequential clean fuel sites. Carbon Direct and C2X have partnered to advance the Beaver Lake Biofuels project in Rapides Parish, converting locally sourced forestry residues into biomethanol while permanently locking captured carbon underground.

Built on the old International Paper site shuttered in 2009, the project repurposes industrial infrastructure already in place. Three SunGas Renewables S1000 gasifiers will break down surplus sawmill waste, bark, and wood thinnings into biogenic syngas, then process it into biomethanol, a low-carbon fuel compatible with existing marine engines and a proven feedstock for sustainable aviation fuel. Louisiana's declining pulp and paper sector has left an oversupply of precisely these materials, making the region's feedstock case unusually strong.

Planned output stands at roughly 550,000 tonnes of biomethanol per year. Alongside production, around one million tonnes of CO2 will be geologically stored annually, secured for over 1,000 years.

Microsoft has signed a 12-year offtake deal covering 3.6 million metric tonnes of carbon removal, one of the largest CDR commitments any major technology company has publicly disclosed. Carbon Direct's Supply Services team joins as both scientific validator and market channel, ensuring credits meet rigorous verification standards while working to secure additional offtake agreements. A final investment decision is expected in 2026, with construction beginning in the second half of the year and first deliveries targeted for late 2028.

The surrounding communities stand to gain more than clean energy. Over 1,150 construction jobs and more than 100 permanent positions represent a meaningful revival for a region whose paper industry vanished more than 15 years ago. C2X, majority-controlled by the A.P. Moller Group with ENEOS as a minority shareholder, has designed Beaver Lake as the first in a planned series of US biomethanol facilities.

Shipping demand is already materializing, with over 300 methanol-capable vessels on order globally. Positioned at the convergence of waste feedstocks, permanent carbon removal, and corporate demand, Beaver Lake offers a replicable model for domestic clean fuel infrastructure built on existing industrial land.