Carbon Direct and C2X have announced a new collaboration to advance the Beaver Lake Biofuels project in Louisiana. This project presents a pioneering approach to biomass carbon removal and storage (BiCRS), transforming forestry residues and by-products into both clean fuel and high-quality carbon dioxide removal (CDR) credits.

The downturn of the U.S. pulp and paper industry has left Louisiana with closed mills, lost jobs, and a mounting wood surplus: an oversupply of forestry and sawmill byproducts, residues, and a backlog of thinnings, including wood, tree-tops, and bark. The Beaver Lake project utilizes this abundant, sustainably sourced biomass while creating additional climate benefits: it transforms biomass into biomethanol—a clean fuel—and achieves carbon removal with geological storage for 1,000+ years.

The Beaver Lake project is expected to produce approximately 550,000 tonnes of bio-methanol annually and durably store approximately 1 million tonnes of CO₂ per year. The project has already secured long-term commitments from leading buyers, including a CDR offtake agreement with Microsoft for 3.6 million metric tonnes of carbon removal over 12 years.

The project will soon complete the front-end engineering design (FEED) phase and is expected to reach final investment decision (FID) in 2026, positioning it for delivery starting in 2029. The project utilizes three SunGas Renewables S1000 gasifier systems to make biogenic syngas and further integrates other commercially proven technologies from worldwide industry leaders to produce bio-methanol.

Carbon Direct’s Supply Services business serves as a project contributor, providing scientific expertise and carbon market knowledge to deliver the highest standards for durability, measurement, and verification. Carbon Direct’s Supply Services team is also the go-to-market channel for the project's CDR credits, facilitating offtake agreements with buyers to support project development.

"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. "We are proud to collaborate with C2X on this breakthrough process that converts forestry residue into biomethanol while simultaneously locking away carbon. This biofuel can help decarbonize key hard-to-abate sectors such as shipping and aviation—where clean alternatives have been challenging to implement.”

“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. “To successfully realize this project, we need the active support of industry leaders in all areas of the project’s development. 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.”

Beaver Lake is repurposing the former International Paper Pineville Mill site in Louisiana, which has been largely vacant since its closure in 2009, avoiding new land disturbance and restoring productive use to existing industrial infrastructure. The project utilizes locally abundant forestry by-products and residues, minimizing transportation emissions and costs, with sufficient land and supporting infrastructure in place for future expansion. During construction, the project is expected to support approximately 1,150 peak construction jobs, and once operational, the facility is expected to support 660 direct and indirect new jobs.

Biomethanol offers a near-term decarbonization solution for hard-to-abate sectors including shipping and aviation. The fuel is compatible with existing infrastructure and retrofitted marine engines, reducing lifecycle CO₂ emissions by up to 95%, while also dramatically improving air quality. Today, transportation accounts for 13.7% of global greenhouse gas emissions. With FuelEU Maritime mandating progressively tightening GHG intensity limits—from 2% reduction by 2025 to 80% by 2050—and other global mandates quickly emerging, demand for low-carbon biomethanol as a marine fuel continues to grow. As there are approximately 60 methanol-capable vessels currently in operation and more than 300 on order, the greatest barrier to scale is the availability of reliable, low-carbon biomethanol. Biomethanol also serves as a feedstock for sustainable aviation fuel (SAF), providing a pathway to decarbonize aviation.

Science-backed carbon removal credits from this project are available for forward offtake. Buyers interested in procuring high-quality CDRs from the project should visit Carbon Direct’s website: https://www.carbon-direct.com/services/carbon-credits

Carbon Direct.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Latest Articles

Carbon Direct and C2X announce collaboration on pioneering forestry residue-to-biofuel project

Carbon Direct