Microsoft expands carbon removal agreement with Stockholm Exergi
By Global Infrastructure Sherpa · May 7, 2025
Stockholm’s BECCS project
Project
Microsoft has extended a carbon removal agreement with Stockholm Exergi, increasing the quantity of carbon removal credits from 3.33 million tons to 5.08 million tons, generated by Stockholm’s BECCS project in Värtan, Stockholm. The ten-year deal is still expected to start in 2028, following the commissioning of Stockholm Exergi’s biomass plant.
Deal Analysis
Microsoft's expanded carbon removal agreement with Stockholm Exergi signifies a growing commitment to carbon capture technologies as a key component of its sustainability strategy. The agreement increases Microsoft's commitment to 5.08 million tons of carbon removal credits over ten years, sourced from Stockholm Exergi's BECCS project in Värtan, Sweden, commencing in 2028. This deal underscores the increasing role of large corporations in directly funding and supporting the development of carbon removal infrastructure projects to offset their carbon footprint.
The deal is notable for its scale, involving a substantial volume of carbon removal credits and a long-term commitment from a major technology player. Stockholm Exergi's BECCS project represents a significant investment in bioenergy carbon capture and storage, a technology considered crucial for achieving net-zero emissions. While the financial terms remain undisclosed, the agreement highlights the potential for BECCS projects to attract substantial investment from corporations seeking to meet ambitious sustainability targets.
- Increased commitment to 5.08 million tons of carbon removal credits.
- Long-term, ten-year agreement between Microsoft and Stockholm Exergi.
- Focus on BECCS technology for carbon removal.
- Highlights corporate investment in carbon removal infrastructure.
Market Context: The carbon capture market is rapidly evolving, driven by increasing pressure on companies to reduce their carbon footprint and achieve net-zero emissions targets. BECCS is a key technology within this market, offering the potential for negative emissions by capturing and storing carbon dioxide from biomass combustion.
Source Intelligence
KEY DETAILS
The revised agreement will increase the quantity of carbon removal credits from 3.33 million tons to 5.08 million tons. "The revised deal comes almost a year to the day of the original agreement ."
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Deal Size
The plant is expected to be operational in 2028, and will cost an estimated $1.4 billion.
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Capacity
Stockholm Exergi initially installed a small carbon capture project at its 153MW combined heat and power plant in Sodermanland, Sweden.
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Location
The credits will be generated by Stockholm’s BECCS project in Värtan, Stockholm.
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PPA Details
The ten-year deal is still expected to start in 2028, following the commissioning of Stockholm Exergi’s biomass plant.
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Announcement
May 07, 2025
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COD
The ten-year deal is still expected to start in 2028, following the commissioning of Stockholm Exergi’s biomass plant.
PARTIES MENTIONED IN SOURCE
M
Microsoft
buyer
"Microsoft has extended a carbon removal agreement for bio-energy with carbon capture and storage (BECCS) firm Stockholm Exergi."
S
Stockholm Exergi
seller
"Microsoft has extended a carbon removal agreement for bio-energy with carbon capture and storage (BECCS) firm Stockholm Exergi."
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CO280
null
"In April , it signed an agreement with CO280, a Canadian firm that retrofits existing pulp and paper mills with carbon capture units to capture biogenic CO2 to purchase 3.685 million tons of credits over a 12-year period."
T
Terradot
null
"For example, last month, the company agreed to purchase 12,000 tons of CO2 removals from Enhanced Rock Weathering company Terradot."
high quality
Enriched Feb 19, 2026
Market Context
This deal is part of the Carbon Capture sector in Sweden.
1 of 7 Carbon Capture deals tracked this month · Updated daily
Global Infrastructure Sherpa