In a bold move to further its climate action goals, Microsoft has significantly expanded its carbon removal agreement with Stockholm Exergi, a Swedish district heating provider. The updated deal boosts the volume of carbon credits purchased by more than 50%, making it the world’s largest carbon removal contract to date, according to a statement released by Stockholm Exergi.
Under the new agreement, Microsoft will now support the capture and storage of 5.08 million tons of carbon dioxide over a period of 10 years, up from the original 3.33 million tons agreed upon last year. This step highlights Microsoft’s position as one of the leading global buyers of CO₂ removal credits, helping the tech giant neutralize its carbon emissions and inch closer to its pledge of becoming carbon-negative by 2030.
The carbon removal initiative will be powered by Beccs technology, which is short for bioenergy with carbon capture and storage, at a new facility that Stockholm Exergi plans to build. The company has already made a final investment decision for the SEK 13 billion ($1.3 billion) project earlier this year.
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Beccs works by capturing carbon emissions from biomass energy production. The captured carbon dioxide will first be stored temporarily before being transported to Norway, where it will be permanently stored deep under the North Sea bedrock. This cross-border operation is part of the Northern Lights project, a joint venture led by Equinor ASA, Shell Plc, and TotalEnergies SE.
With this agreement, Microsoft strengthens its leadership in corporate sustainability while expediting the scale-up of carbon capture and storage infrastructure in Europe. For Stockholm Exergi, the deal helps drive forward Sweden’s ambition to be a trailblazer in negative emissions technologies.
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As nations and corporations grapple with the urgency of the climate crisis, partnerships like this offer a promising glimpse into how innovation, investment, and international cooperation can converge to deliver impactful solutions.
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Source: Bloomberg
