Microsoft signs major biochar agreement

March 25, 2026

Microsoft has entered into a long-term carbon removal agreement with U.S.-based company Liferaft, securing the delivery of 1 million biochar carbon removal units (CRUs) over the next decade. Facilitated by carbon removal marketplace Supercritical, this landmark deal represents the largest biochar-based carbon removal agreement in the United States to date.

Supercritical played a key role in the early development of the project, advising Liferaft on scaling operations and implementing rigorous monitoring, reporting, and verification (MRV) systems. These efforts ensured full compliance with Microsoft’s strict carbon removal standards.

The CRUs will be produced at Liferaft’s industrial biochar facilities located in Iowa and Illinois, where agricultural residues and municipal biomass are sustainably sourced. Using advanced pyrolysis technology, the biomass is heated in a low-oxygen environment to produce stable, carbon-rich biochar.

This biochar is then blended with compost to create a nutrient-enhancing soil amendment. When applied to farmland, the biochar-compost mixture helps improve soil fertility, increase crop productivity, and permanently capture carbon dioxide for centuries.

To guarantee transparency and long-term carbon storage, Liferaft will deploy advanced MRV frameworks to track biochar usage and ensure it is applied only in approved applications. The project will also be listed on an ICROA-approved carbon registry, with credits issued only after independent third-party verification.

In addition to environmental benefits, the initiative is designed to deliver strong economic and social impact. Liferaft has actively collaborated with local communities and stakeholders to tailor the project to regional needs. This includes thoughtful decisions around feedstock sourcing, facility placement, and community engagement strategies.

Phillip Goodman, Director of Carbon Removal at Microsoft, highlighted the broader impact of the partnership, stating that the Liferaft project combines high-quality, durable carbon removal with tangible local benefits.

He also emphasized that utilizing locally available biomass waste, creating jobs, and supporting farmers demonstrates how carbon removal initiatives can strengthen rural economies, enhance land management, and drive meaningful climate action.

Liferaft CEO William Cowell de Gruchy expressed appreciation for the support from local communities in West Liberty and Muscatine County, Iowa, as well as from Microsoft and Supercritical. He noted that the collaboration reflects a shared commitment to building a project that benefits both the environment and local communities, while contributing to a more sustainable future.