Microsoft Strikes World's Largest Carbon Removal Deal with Swedish Energy Company

On Monday, May6, Microsoft and Swedish energy company Stockholm Exergi announced a historic agreement that will see the permanent removal of 3.3 million metric tons of carbon dioxide. This deal marks the world's largest carbon removal agreement to date. The carbon removal certificates are set to be delivered to Microsoft starting in 2028, continuing for a decade.

Stockholm Exergi, the provider of power to the people of Stockholm, is embarking on a monumental carbon capture and storage project. This initiative aims to permanently remove 800,000 metric tons of carbon dioxide annually. Construction for this groundbreaking project is scheduled to commence in 2025, with the goal of reaching a final investment decision by the fourth quarter of the same year, as stated by Anders Egelrud, CEO of Stockholm Exergi.

Installation at Europe's Largest Biomass Power Plant

The carbon capture project will be integrated into Stockholm Exergi's biomass power plant, which holds the distinction of being the largest of its kind in Europe. This plant generates heat and electricity by incinerating waste from the forestry industry and paper mills. The carbon dioxide released during this process will be extracted from the plant's emissions, transformed into a liquid for transport, and permanently stored underground.

Stockholm Exergi has initiated the sale of carbon removal certificates, each equivalent to 1 million metric tons of carbon dioxide. This strategic move aims to support companies in achieving their net-zero emissions targets.

Brian Marrs, Microsoft's senior director of energy and carbon removal, emphasized the significance of leveraging existing biomass power plants as a crucial first step in establishing global carbon removal capacity.