TEXAS — Microsoft signed an agreement in May to purchase 650,000 metric tons of carbon-removal credits from BioCirc, the company said. BioCirc confirmed the signing date of the agreement.

The credits will be generated from five BioCirc biogas projects. The plants process biomass waste in industrial bioreactors to produce methane and carbon dioxide. The captured carbon dioxide is stored in an underground reservoir offshore, while the methane is burned in a power plant.

Two reports published last month stated that Microsoft had paused its new carbon-removal deals. The reported pause prompted concern in the carbon-removal industry, where Microsoft accounts for more than 90% of the market. Last year, the company signed several deals worth millions of tons of carbon-removal credits.

"Our carbon removal program has not ended. At times we may adjust the pace or volume of our carbon removal procurement as we continue to refine our approach toward sustainability goals." Microsoft chief sustainability officer Melanie Nakagawa said.

Microsoft is working with Chevron and Engine No. 1 to build a natural gas power plant in Texas that could eventually generate 5 gigawatts of electricity. Emissions from the Texas project are expected to exceed the carbon removal achieved by the BioCirc deal.

The company has a target to become a carbon-negative company by 2030. Meeting that target will require Microsoft to increase its carbon-removal purchases if it continues pursuing fossil fuel power plants.

Microsoft employees have debated whether to abandon the company's goal of matching zero-emissions electricity with its energy use on an hourly basis. The company currently matches its energy use with zero-emissions electricity on an annual basis. The annual matching approach allows Microsoft to use more natural gas to power its data centers at night, and it reduces the verifiability of the company's clean energy claims.