Microsoft has confirmed it will purchase 650,000 metric tons of carbon-removal credits from startup BioCirc, a move that suggests the tech giant may not be as far off its climate goals as previously thought.

This deal is significant because last month, reports suggested Microsoft had paused its carbon-removal purchases. However, BioCirc confirmed to TechCrunch that the purchase agreement was signed in May, indicating a possible recalibration rather than an outright halt.

The new deal involves five BioCirc biogas projects which capture and store carbon dioxide from biomass waste—turning it into methane for energy use. This is crucial as Microsoft faces growing internal debates on its approach to clean energy amid its push into artificial intelligence, a field that requires substantial power and potentially higher emissions.

Microsoft’s sustainability officer, Melanie Nakagawa, stated that while the company may adjust the pace of its carbon-removal procurement, it remains committed. However, as Microsoft continues to explore fossil fuel power plants, it will need to significantly increase its carbon-removal efforts if it is to meet its ambitious 2030 target of becoming a carbon-negative entity.