Stockholm Exergi, a Swedish energy company, and Microsoft have signed a landmark contract for 3.33 million tonnes of permanent carbon removals through bioenergy with carbon capture and storage (BECCS) at Värtan, Stockholm. This agreement represents the world’s largest permanent removals deal to date. The carbon removal certificates will be delivered to Microsoft starting in 2028, with a ten-year duration.
The contract highlights the importance of both emissions reductions and permanent carbon removals in limiting global warming to 1.5°C or below 2°C, as set by the Paris Agreement. Both companies aim to contribute to the growth of the carbon removal industry, enabling corporations to meet their net-zero targets and nations to fulfill their Paris Agreement obligations.
“We are extremely proud to announce this carbon removal offtake with Stockholm Exergi from its pioneering Värtan BECCS project. Leveraging existing biomass power plants is a crucial first step to building worldwide carbon removal capacity. In this case, we are pleased with the efficiency of recovering heat from carbon capture and adding it into district heating networks. Finally, it is crucial to sustainably source the biomass for BECCS projects and we were impressed with Stockholm Exergi’s commitment in this regard,” said Brian Marrs, Senior Director, Energy & Carbon Removal.
Since 2020, Microsoft has pursued a goal of being carbon negative by 2030, with a “reductions first” strategy complemented by building a portfolio of carbon removal offtake agreements. The company has established criteria for high-quality removals, pursued financeable offtake agreements, shared lessons learned, and reported progress annually.
Stockholm Exergi will deliver carbon removals adhering to stringent quality requirements, including sustainable sourcing of forest biomass, conservative quantification of net removals, and comprehensive monitoring, reporting, and verification (MRV). The carbon removals exchanged in this agreement will be used by Microsoft to offset its own emissions and will be transparently reported as contributing to Sweden’s climate targets, similar to how corporate emission reductions support national climate goals.
