Fidelis, a Texas-based energy company, is collaborating with Microsoft to develop an $800 million facility in the port of Greater Baton Rouge aimed at capturing carbon dioxide (CO2) emissions for underground storage or fuel production. Microsoft has entered into an agreement with Fidelis’ subsidiary, Atmosclear, to remove 6.75 million tonnes of CO2 over 15 years as part of its goal to become carbon negative by 2030. The facility plans to use materials such as sugar cane bagasse and forest management trimmings to harness atmospheric energy and produce low-carbon natural gas and synthetic fuels.
While the exact CO2 storage location is not finalized, several companies are seeking permits for underground injection. The project is anticipated to generate 75 permanent jobs and 600 construction jobs, marking the largest CO2 removal agreement globally to date. It comes amid a surge in Louisiana initiatives focused on reducing emissions and transitioning to renewable energy, although many projects are still in the early stages and face local opposition.
A final investment decision for the project is expected later this year, with construction set to begin in 2026 and commercial operations slated for 2029. Fidelis is also working on a separate renewable fuel project valued at $9.2 billion, which is currently awaiting federal clean energy tax incentives. Local community leaders are advocating for transparency and public meetings regarding the new facility, though some regulatory aspects may differ given its port location.
Microsoft had recently announced another agreement with CO280 for emissions capture at pulp mills, emphasizing its commitment to sustainability through innovative partnerships.
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