Microsoft Signs Deal to Remove 1.1 Million Tons of CO2 Through Waste-to-Energy Carbon Capture

Oslo-based power and heat provider Hafslund Celsio announced today a new carbon removal offtake agreement with Microsoft, with the tech giant purchasing more than 1 million tons of carbon credits over ten years, to be generated by a new carbon capture project at Norway’s largest waste-to-energy plant.

Hafslund Celsio operates the Klemetsrud waste-to-energy facility in Oslo which incinerates around 350,000 metric tons of sorted residual waste each year, with excess energy used to produce electricity and heat. The process results in both biogenic CO2 emissions from burning organic material like spoiled paper and cardboard, as well as fossil CO2 emissions from burning inorganic materials such as plastics.

The new agreement will support Hafslund Celsio’s full-scale CCS project at the plant, which is anticipated to capture about 350,000 tonnes of CO2 annually, with about half from the biogenic emissions, and the remainder from the fossil CO2 emissions. The plant is expected to begin capturing CO2 in 2029. Once captured, the CO2 will be transported by ship to the Northern Lights facility for permanent geological storage.

While only the carbon removed from the biogenic emissions will be included in the creation of carbon credits, Hafslund Celsio said that the fossil portion will reduce the City of Oslo’s annual emissions by 20%.

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Martin S. Lundby, CEO, Hafslund Celsio, said:

"The agreement with Microsoft is a significant contribution to the commercial success of Hafslund Celsio’s carbon capture and storage project. Microsoft’s purchase is a strong recognition of our CCS project and highlights the crucial role of the waste-to-energy sector as a credible provider of permanent carbon removals."

Hafslund Celsio’s carbon capture project forms part of Longship, the Norwegian Government’s full-scale carbon capture and storage project. Longship was unveiled in September 2020, with the government describing carbon capture and storage as a prerequisite for reducing global greenhouse gas emissions in line with the Paris Agreement climate targets. The CCS project is aimed at creating a model that can serve as a roadmap for the 500 other waste-to-energy plants in Europe, the company said.

The transaction marks the latest in a series of large-scale carbon credit deals by Microsoft, by far the largest corporate buyer of carbon removal credits globally, including two multi-million-ton deals announced by the company in just the past week.

Brian Marrs, Senior Director, Energy & Carbon Removal, Microsoft, said:

"Hafslund Celsio’s project turns waste into valuable carbon dioxide removal, while providing the city of Oslo with heating and helping Norway meet its climate goalsWe appreciate Hafslund Celsio’s central role in Project Longship and are pleased to see this project develop."