Ørsted and Microsoft strengthen their carbon capture partnership

Ørsted will sell one million tonnes of CO2 to Microsoft over ten years as part of the BECCS 'Ørsted Kalundborg CO2 Hub' project, reinforcing their joint commitment to a sustainable future.

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Ørsted et Microsoft Renforcent leur Partenariat pour la Capture de Carbone.

Ørsted, has announced a new agreement with Microsoft for the sale of one million tonnes of CO2 from the Avedøre power plant in Denmark. This new agreement is in addition to Microsoft’s existing commitment to purchase 2.67 million tonnes of CO2 from the Asnæs plant, bringing the total to 3.67 million tonnes. The Ørsted Kalundborg CO2 Hub project involves capturing biogenic CO2 from Ørsted’s biomass power plants and storing it permanently in a reservoir in the Norwegian North Sea. Carbon capture will begin in 2026, with 430,000 tonnes of CO2 captured annually, making a significant contribution to reducing global carbon emissions.

A Collaborative Model for a Sustainable Future

The Avedøre power plant converts local straw, an agricultural by-product, into electricity and district heating. By capturing biogenic carbon from these power plants and storing it underground, Ørsted and Microsoft create negative emissions, helping to combat climate change. Ole Thomsen, Senior Vice President at Ørsted, underlines the importance of this collaboration: “This extended collaboration with Microsoft is a testament to our shared vision for a sustainable future. By combining Ørsted’s expertise in carbon capture and storage with Microsoft’s commitment to reducing its carbon footprint, we are accelerating the transition to a greener economy.”

Project impact and prospects

The project has received a 20-year grant from the Danish Energy Agency, underlining its strategic importance. According to the report by the Intergovernmental Panel on Climate Change (IPCC), carbon capture technologies like BECCS are essential for limiting global warming. Brian Marrs, Senior Director of Energy and Carbon Removals at Microsoft, said, “We are proud to announce a new carbon removal agreement with Ørsted, a pioneer in the responsible development of carbon capture in Denmark. This announcement is a concrete step towards our goal of becoming carbon-negative by 2030.”

An example of Climate Leadership

The Ørsted Kalundborg CO2 Hub is an example of leadership in sustainability. This innovative project highlights the importance of rapid, effective action to achieve climate targets. The Asnæs and Avedøre power plants play a crucial role in this project, converting renewable resources into energy while reducing carbon emissions. This innovative and strategic project demonstrates the importance of collaboration in achieving sustainability and carbon neutrality, while supporting the global energy transition.

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