Carbon Direct and C2X have entered a strategic collaboration to develop the Beaver Lake Biofuels project in Pineville, Louisiana. The facility repurposes a former International Paper mill to convert forestry residues into low-carbon marine fuel and permanent carbon removal.
New York | February 25, 2026 – In a move that bridges industrial decarbonization with durable carbon dioxide removal (CDR), Carbon Direct and C2X have announced a strategic collaboration to advance the Beaver Lake Biofuels project in Louisiana, a first-of-its-kind biomass carbon removal and storage (BiCRS) initiative designed to produce large-scale biomethanol for marine and aviation markets while permanently storing captured CO₂.
The project addresses two structural challenges simultaneously: the oversupply of forestry residues in the U.S. Gulf South following the contraction of the pulp and paper sector, and the accelerating demand for scalable, low-carbon fuels to meet tightening maritime and aviation emissions regulations.
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Transforming Wood Waste into Marine Fuel and Permanent Carbon Removal
Located at the former International Paper Pineville Mill site, dormant since 2009, the Beaver Lake facility will repurpose existing industrial infrastructure to convert sustainably sourced forestry and sawmill by-products into approximately 550,000 tonnes of biomethanol annually.
At the same time, the project is designed to capture and permanently store around 1 million tonnes of CO₂ per year through geological sequestration, locking carbon underground for more than 1,000 years. The integration of fuel production with durable storage positions Beaver Lake among the most ambitious BiCRS projects globally.
The facility will deploy three S1000 gasifier systems supplied by SunGas Renewables to produce biogenic syngas, which will then be upgraded into marine-grade biomethanol using commercially proven downstream technologies.
The project is nearing completion of its Front-End Engineering Design (FEED) phase and is targeting Final Investment Decision (FID) in 2026, with operations expected to commence in 2029.
Maritime Decarbonization Tailwinds
For the bunkering and shipping sectors, the timing is significant, Biomethanol is emerging as one of the most viable near-term solutions for deep-sea decarbonization. Compatible with existing storage infrastructure and methanol-ready engines, the fuel can reduce lifecycle CO₂ emissions by up to 95% compared to conventional marine fuels, while materially lowering particulate matter and SOx emissions.
Regulatory pressure is intensifying. The European Union’s FuelEU Maritime framework mandates a progressive reduction in greenhouse gas intensity, beginning with a 2% reduction in 2025 and tightening to 80% by 2050. Meanwhile, methanol-capable vessel orders continue to outpace fuel supply growth, with roughly 60 vessels currently in operation and more than 300 on order globally.
The primary constraint is no longer engine technology, it is access to reliable volumes of low-carbon methanol, Beaver Lake aims to help close that gap while simultaneously generating high-integrity carbon removal credits.
Long-Term Offtake Anchors Project Economics
The development has already secured major commercial backing. Notably, Microsoft has entered into a 12-year agreement to purchase 3.6 million metric tonnes of carbon removal credits from the project, providing long-term revenue certainty.
Carbon Direct’s Supply Services division is acting as both scientific advisor and go-to-market partner for the CDR component. The firm will oversee durability standards, measurement, reporting, and verification protocols, while facilitating additional forward offtake agreements with corporate buyers.
“This collaboration represents an opportunity to revitalize a declining market for wood by-products and transform that resource into two complementary climate solutions at scale,” said Greg FitzGerald, Vice President of Supply at Carbon Direct. “By converting forestry residue into biomethanol while permanently storing carbon, this project directly supports decarbonization in hard-to-abate sectors such as shipping and aviation.”
Brian Davis, CEO of C2X and former Shell Global VP, emphasized the project’s integrated value “Beaver Lake combines bio-methanol production for industrial customers with permanent carbon removals. Securing strong partners across engineering, markets, and carbon science is essential to delivering this project at scale.”
Regional Economic Impact
Beyond its climate credentials, the project carries significant economic implications for central Louisiana.
During peak construction, Beaver Lake is expected to support approximately 1,150 jobs, with around 660 direct and indirect positions sustained once operational. By leveraging locally abundant biomass and existing site infrastructure, the development minimizes transportation emissions and avoids new land disturbance, while enabling future expansion capacity.
Aviation Linkages
In addition to marine fuel applications, biomethanol serves as a feedstock pathway for sustainable aviation fuel (SAF), offering further cross-sector decarbonization potential as airlines seek scalable synthetic fuel solutions.
With transportation responsible for roughly 13.7% of global greenhouse gas emissions, integrated projects such as Beaver Lake illustrate how industrial decarbonization, carbon removal, and regional economic renewal can converge.
Forward CDR Offtake Available
Science-backed carbon removal credits from the Beaver Lake project are currently available for forward purchase agreements. Interested buyers can access further details via Carbon Direct’s carbon credit services platform.
Behind the Collaboration: The Strategic Powerhouses
To understand the scale of the Beaver Lake project, one must look at the two entities driving its development. Their partnership bridges the gap between high-level climate science and global industrial logistics.
Carbon Direct: The Scientific Authority
Carbon Direct is far more than a carbon broker; it is a specialized energy and climate solutions firm defined by technical rigor.
- Scientific Depth: The firm employs over 70 scientists who work alongside finance and policy experts to “de-risk” decarbonization.
- Blue-Chip Portfolio: Carbon Direct is the trusted partner for global giants like Microsoft and JPMorganChase, providing the due diligence required for large-scale carbon dioxide removal (CDR) and carbon measurement.
- The Role: At Beaver Lake, Carbon Direct ensures the project meets the highest global standards for measurement and verification, turning captured CO2 into a bankable, high-quality asset.
C2X: The Industrial Architect
C2X is a purpose-built vehicle designed to solve the “low-carbon molecule” shortage for the hardest-to-abate sectors.
- Global Infrastructure: The company develops and operates production facilities in strategic global hubs, specifically targeting the shipping, aviation, and chemical industries.
- The Maersk Heritage: C2X is majority-controlled by the A.P. Moller Group, the parent company of Maersk, positioning it at the very heart of the maritime energy transition.
- Strategic Alliances: With ENEOS (Japan’s largest integrated energy company) as a minority shareholder and ownership of SunGas Renewables Inc. (the technology provider for Beaver Lake), C2X controls the entire value chain from technology to end-user offtake.
Source: Carbon Direct