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

Stockholm Exergi Lands World’s Largest Permanent Carbon Removal Deal With Microsoft - Carbon Herald

Swedish energy company Stockholm Exergi has unveiled a groundbreaking agreement with Microsoft (NASDAQ: MSFT), covering 3.33 million tons of permanent carbon removals through bioenergy with carbon capture and storage (BECCS) at Värtan, Stockholm.

Although the value of the deal was not disclosed, it stands as the largest of its kind globally based on current prices.

Scheduled to commence in 2028 and span a decade, the agreement underscores a pivotal moment in combatting climate change.

Anders Egelrud, CEO of Stockholm Exergi, lauded the deal as a “huge step” for the company and its BECCS project, emphasizing its profound implications for climate action.

“I believe the agreement will inspire corporations with ambitious climate objectives, and we target to announce more deals with other pioneering companies over the coming months,” he said.

Recognizing the imperative of permanent carbon removals in limiting global warming to 1.5 °C or below, the deal aligns with Microsoft’s ambitious goal of becoming carbon negative by 2030.

Relevant: Stockholm Exergi Receives Court Approval For Carbon Capture Project

By forging partnerships like this, both entities aim to foster the growth of the carbon removal industry, enabling corporations to meet net-zero targets and nations to fulfill the objectives of the Paris Agreement.

“Leveraging existing biomass power plants is a crucial first step to building worldwide carbon removal capacity,” Brian Marrs, Microsoft’s Senior Director of Energy & Carbon Removal, said, highlighting the importance of sustainable biomass sourcing for BECCS projects, as is the case with Stockholm Exergi.

The partners will adhere to stringent quality standards, ensuring transparent reporting and adherence to sustainability criteria.

The BECCS facility, once operational, will remove up to 800,000 tons of carbon dioxide (CO2) annually, contributing significantly to atmospheric carbon reduction.

With environmental permits secured and construction set to commence in 2025, Stockholm Exergi plans to reach the final investment decision by the end of the year.

The funding model for the project, combining private funding from Microsoft and other buyers, government aid, and EU funding, exemplifies a collaborative approach to realizing impactful climate initiatives.

Additional revenues from selling carbon removal units on the voluntary market will also be required as Stockholm Exergi navigates toward financial close.

Read more: Microsoft Publishes Guide To Better Corporate CDR Claims

1 comment
  1. Any attempts at quantitative carbon removal to affect the Earth’s climate will necessarily require many parts-per-million of CO2 to be removed and stored permanently. However, when one is reminded that just ONE ppm of CO2 represents 7.8 gigatons (7,800 million tons) the process becomes a fool’s journey . Even if that “huge” amount could be successfully stored the atmosphere would not even miss it. There are now 420 ppms. Minus one?

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