Key Takeaways
- Carbon Direct and C2X formed a collaboration to advance the Beaver Lake Biofuels project in Louisiana
- The project plans to convert forestry residues into biomethanol and generate carbon dioxide removal (CDR) credits via geological storage
- Beaver Lake is expected to produce ~550,000 tonnes of biomethanol annually and store ~1 million tonnes of CO₂ per year
- Microsoft has signed a CDR offtake agreement for 3.6 million metric tonnes over 12 years
- The project is nearing FEED completion, targets FID in 2026, and anticipates delivery starting in 2029
Carbon Direct and C2X Partner on Beaver Lake Biofuels in Louisiana
Carbon Direct and C2X announced a new collaboration to advance the Beaver Lake Biofuels project in Louisiana, positioning the development as a biomass carbon removal and storage (BiCRS) project that converts forestry residues and by-products into biomethanol and high-quality carbon dioxide removal (CDR) credits.
The project is designed to utilize locally available forestry and sawmill by-products, residues, and thinnings—such as wood, tree-tops, and bark—amid an oversupply linked to U.S. pulp and paper industry contraction in the region. The project plans to durably store captured CO₂ through geological storage for 1,000+ years.
“This important collaboration with C2X represents an opportunity to bolster a declining market for wood by-products and transform this resource into two complementary climate solutions at scale,” said Greg FitzGerald, Vice President of Supply at Carbon Direct.
Carbon Direct Role: CDR Standards and Go-to-Market Support
Carbon Direct’s Supply Services business is contributing scientific and carbon market expertise focused on durability, measurement, and verification. Carbon Direct will also serve as the go-to-market channel for the project’s CDR credits, supporting offtake agreements to help advance project development.
“We are proud to collaborate with C2X on this breakthrough process that converts forestry residue into biomethanol while simultaneously locking away carbon,” FitzGerald added, referencing the project’s intended applications for hard-to-abate sectors.
Project Scale, Site Repurposing, and Timeline
Beaver Lake is expected to produce approximately 550,000 tonnes of biomethanol annually and durably store approximately 1 million tonnes of CO₂ per year. The project has secured long-term commitments, including a CDR offtake agreement with Microsoft for 3.6 million metric tonnes over 12 years.
The facility is planned for the former International Paper Pineville Mill site in Louisiana, which has been largely vacant since 2009. The project is expected to support approximately 1,150 peak construction jobs and, once operational, approximately 660 direct and indirect new jobs.
The project will soon complete front-end engineering design (FEED), is expected to reach final investment decision (FID) in 2026, and is positioned for delivery starting in 2029. It plans to use three SunGas Renewables S1000 gasifier systems to produce biogenic syngas, alongside other commercially proven technologies to produce biomethanol.
“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 are pleased to have access to Carbon Direct’s world class scientific and carbon market expertise to help us secure additional offtake for our high-quality carbon removal credits.”
