C2X to Deliver 3.6 Million Metric Tons of Carbon Removal to Microsoft Over 12 Years

HOUSTON, TEXAS, December 11, 2025: C2X Ltd. has, through its subsidiary Beaver Lake Renewable Energy LLC (Beaver Lake), signed a long-term agreement with Microsoft for the sale and purchase of high-quality engineered carbon removal units (CRUs) from its Beaver Lake project in Louisiana. Beaver Lake, a low-carbon fuels project under development by C2X, will deliver 3.6 million high-quality engineered CRUs to Microsoft over a 12-year period.

C2X is developing the Beaver Lake bio-methanol plant near Pineville, Louisiana, on the site of a former paper mill. The facility is designed to convert locally and sustainably sourced forestry residues into bio-methanol and biogenic CO₂ that will be subsequently captured. In addition to producing over 500,000 metric tons of bio-methanol annually at full scale for global and U.S. customers in the shipping, aviation, chemicals, and industrial sectors, it will capture and store around 1 million metric tonnes of CO₂ annually.

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Under this agreement, Beaver Lake will deliver CRUs, each representing one metric ton of carbon dioxide that has been durably removed from the atmosphere and permanently stored in secure geologic formations in Louisiana. All associated lifecycle emissions—including those from relevant biomass sourcing, facility operations, and downstream transportation—will be accounted for and subtracted to ensure net carbon removal. Any carbon benefits will be allocated between the bio-methanol and CRUs to assure no double counting. The project will be registered and CRUs ultimately issued on an ICROA-endorsed registry, which includes verification by an independent third party. The project will additionally follow practices to ensure sustainable biomass sourcing, including alignment with the principles outlined in EU RED III.

“The Beaver Lake project combines the benefits of bio-methanol production for customers in hard-to-abate sectors with permanent carbon removals,” said Brian Davis, CEO of C2X. “We appreciate the leadership of Microsoft in the engineered carbon removal market and their collaboration to finalize this agreement. We look forward to working with other companies seeking to access biogenic carbon for sequestration as we deliver this project and scale up our portfolio globally.”

“The BLRE project provides a unique opportunity for large-scale carbon removal, while driving broader decarbonization initiatives through green methanol production,” stated Phillip Goodman, Director of Carbon Removal Portfolio at Microsoft. “We value the technical and commercial expertise of the C2X team, which has demonstrated commitment to sustainable biomass sourcing, rigorous carbon accounting, and thoughtful engagement of the project’s surrounding community.”

With an estimated total investment of approximately $2.5 billion, the Beaver Lake project is expected to create up to 1,150 construction jobs, and more than 600 direct and indirect jobs in the local community when fully operational. The project will also support the forestry industry in Louisiana, which has been impacted by closures of paper and pulp mills in recent years. It will also help to underpin substantial investments in CO₂ transportation and sequestration in Louisiana. Following completion of engineering and development, construction is expected to start in the second half of 2026 and operations are expected to commence during 2029.

For further information about the Beaver Lake Renewable Energy Project, visit beaverlakerenewable.com.

About C2X

C2X develops, owns, and operates low-carbon molecule production facilities in strategic locations, which will supply the shipping, chemical, aviation, and industrial sectors with low-carbon fuels and feedstocks. C2X is the majority owner of SunGas Renewables Inc., the parent company of Beaver Lake. C2X is majority controlled by the A.P. Moller Group with ENEOS, Japan’s largest integrated energy company, as a minority shareholder.