Microsoft Signs Major Carbon Removal Deal With Ørsted

Microsoft Signs Major Carbon Removal Deal With Ørsted - Carbon Herald

Tech giant Microsoft has inked a significant agreement with Ørsted, a renewable energy leader, for the removal of one million metric tons of carbon dioxide over a decade. 

This builds on an existing commitment from Microsoft to purchase 2.67 million tons, bringing the company’s total commitment to 3.67 million tons.

The captured carbon will come from Ørsted‘s bioenergy carbon capture and storage (BECCS) project called the “Ørsted Kalundborg CO2 Hub.” 

Relevant: New Orsted Carbon Capture Projects Will Help Denmark Mitigate Emissions

This project captures biogenic CO2, a natural part of the carbon cycle, from power plants that burn wood chips and agricultural straw. 

The captured CO2 will be permanently stored underground in the North Sea.

While the project received a Danish government subsidy, revenue from carbon removal certificates was also factored into the investment decision. 

This highlights the importance of projects like the “Ørsted Kalundborg CO2 Hub” in supporting companies’ sustainability goals and tackling global climate change, aligning with the UN’s Intergovernmental Panel on Climate Change’s (IPCC) recommendations for carbon removal technologies. 

Relevant: Stockholm Exergi Lands World’s Largest Permanent Carbon Removal Deal With Microsoft

Ole Thomsen, Senior Vice President and Head of Ørsted’s Bioenergy business, said: “This expanded collaboration with Microsoft is a testament to our shared vision for a sustainable future.” 

“By combining Ørsted’s expertise in bioenergy carbon capture and storage with Microsoft’s commitment to reducing its carbon footprint, we’re showcasing how strategic relations can accelerate the transition to a greener economy.”  

Microsoft has so far inked several massive carbon dioxide removal (CDR) deals, one of the latest marking the largest CDR purchase of 3.33 million tons from Swedish energy company Stockholm Exergi.

Brian Marrs, Senior Director of Energy & Carbon Removals at Microsoft, commented on the deal: “We’re proud once again to announce a landmark offtake agreement with Ørsted, which is pioneering responsible carbon removal development in Denmark while also meeting the needs of a decarbonised energy system.”

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