Microsoft has expanded its carbon dioxide removal (CDR) agreement with Stockholm Exergi, investing in additional tons to be delivered by the Sweden-based energy company.
This expansion builds on the original deal signed between the two companies in May 2024, which entailed the removal of 3.3 million tons of carbon, slated to begin in 2028.
With the latest collaboration update, Microsoft has increased the deal to 5.08 million tons of carbon dioxide to be removed over a 10-year period.
The carbon removal will be delivered through Stockholm Exergi’s ambitious Bioenergy with Carbon Capture and Storage (BECCS) plant, which the company is constructing near Värtaverket in the Stockholm energy port.
With construction work on the way, this facility is expected to become one of the world’s largest sites for removal and permanent storage of biogenic CO2 once completed.
Expected to become operational by 2028, this ~$1.3 billion facility is estimated to have an annual carbon removal capacity of 800,000 tons, surpassing the amount of emissions produced from Stockholm’s road traffic over the same period.
The CO2 captured at the BECCS plant will be temporarily stored before being transported to Norway and injected underground for permanent storage in areas below the North Sea.
For this portion of the CDR operations, Stockholm Exergi has partnered with the Northern Lights project, a groundbreaking cross-border carbon transport and storage initiative led by Equinor ASA, Shell Plc, and TotalEnergies SE.
Relevant: Stockholm Exergi Announces One Of The Largest Carbon Removal Plants In The World
According to the Swedish energy company, its deal with Microsoft stands out as the largest of this kind on the market.
For Microsoft, this agreement with Stockholm Exergi is one more addition to the company’s bold portfolio of carbon removal initiatives that support its sustainability vision and contribute towards global climate goals.
Last month, the tech giant also signed a number of other CDR contracts, including a deal with biochar producer Carba, an investment in reforestation credits from Living Carbon, an agreement with AtmosClear and Fidelis, and a 3.685 million-ton deal with CO280 for decarbonization in the U.S. pulp and paper sector.
Read more: Microsoft Inks The World’s Largest Permanent CDR Deal With AtmosClear And Fidelis
