Stockholm Exergi has penned a landmark contract with Microsoft to cover 3.33m tonnes of permanent carbon removals from bio-energy with carbon capture and storage (BECCS) at Värtan in Stockholm.
The move marks the world’s largest permanent removals deal to date. Scheduled to commence in 2028 and extend over ten years, the deliveries of carbon removal certificates to Microsoft represent a monumental effort in reducing carbon emissions, according to ESG News.
This collaboration signifies a milestone in climate change mitigation. Recognising the critical role of permanent carbon removals in limiting global warming to 1.5 °C or well-below 2 °C, both entities aim to contribute to the growth of the industry.
By demonstrating commitment to ambitious, voluntary corporate climate objectives, they hope to facilitate the achievement of net-zero targets for corporates and nations alike, aligning with the objectives of the Paris Agreement.
Anders Egelrud, CEO of Stockholm Exergi, commented, “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 and takes us an important step closer to a final investment decision in Q4 2024.”
Since 2020, Microsoft has been dedicated to achieving carbon negativity by 2030. This strategy includes a focus on reductions first, complemented by building a portfolio of carbon removal offtake agreements.
Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft, stated, “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,”
In adherence to the agreement, Stockholm Exergi will uphold strict quality requirements in delivering carbon removals.
This encompasses sustainable sourcing of forest biomass, conservative quantification of net removals, and comprehensive monitoring, reporting, and verification (MRV) processes.
Moreover, the carbon removals exchanged in this agreement will contribute towards Microsoft’s efforts to negate its own emissions, aligning with Sweden’s climate targets and national objectives.
This collaboration not only signifies a significant step towards environmental sustainability but also demonstrates the potential of public-private partnerships in driving meaningful change on a global scale.
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