bio-energy In a landmark 10-year offtake agreement, Microsoft has partnered with Stockholm Exergi to secure over 3.3 million tonnes of carbon removal certificates. This historic deal, the largest engineered carbon removal agreement in history, demonstrates Microsoft’s ambitious commitment to achieving net zero carbon emissions.
The BECCS Project: Innovation in Carbon Capture and Storage
Stockholm Exergi’s innovative bio-energy with carbon capture and storage (BECCS) facility will provide Microsoft with these certificates from its Värtan plant in Stockholm. The facility uniquely combines bioenergy-based combined heat and power with carbon capture and storage. By using residues from forestry, sawmill, and pulp production as fuel, the plant will capture CO2 from its flue gases, compress it into liquid form, and store it permanently in sedimentary bedrock beneath the North Sea floor.
Operational Milestones
- Environmental Permit: Secured earlier this year.
- Final Investment Decision: Expected in Q4 2024.
- Construction Timeline: Scheduled to commence in 2025.
- Carbon Capture Capacity: Once operational, the facility is expected to capture 800,000 tonnes of CO2 annually.
The World Economic Forum touts 'carbon removal plants'—each of which removes five million tonnes of CO2 from the atmosphere each year—as "crucial to meeting global climate goals", despite the fact that CO2 currently makes up just 0.04% of the atmosphere, and if it drops to half pic.twitter.com/vFuyU7bcHt
— Linda Richards (@LindaRicha51015) May 6, 2024
Securing Funding and Future Agreements
Stockholm Exergi aims to reach financial closure by securing additional state aid and private carbon removal deals through Sweden’s BECCS aid program. The agreement with Microsoft provides a significant boost toward their investment decision. According to CEO Anders Egelrud:
“The agreement with Microsoft is a huge step forward for our BECCS project, Stockholm Exergi as a company and the climate. It is the strongest possible recognition of the significance, quality, and sustainability of our project.”
Egelrud is optimistic that this partnership will inspire other corporations to pursue similar carbon removal commitments and expects more deals with climate-focused companies soon.
Supporting Microsoft’s Carbon Negative Goal
Deliveries of carbon removal certificates to Microsoft will begin in 2028. This agreement aligns with Microsoft’s comprehensive approach to becoming carbon negative by 2030, following a “reductions-first” strategy combined with a growing portfolio of carbon removal offtake agreements. Their recent investments cover technologies ranging from direct air capture to ocean-based carbon removal.
Microsoft’s dedication to innovative solutions in carbon removal solidifies its leadership role in addressing climate change, while its collaboration with Stockholm Exergi sets a precedent for future corporate partnerships in sustainable development.
