Carbon Removal Offtake Agreements

Microsoft has signed a carbon removal offtake agreement to purchase over 1 million tonnes of CO₂ credits over the next ten years. The credits will come from a pioneering carbon capture and storage (CCS) project at Oslo’s largest waste-to-energy plant, operated by Hafslund Celsio. The project will deploy technology to capture approximately 350,000 tonnes of CO₂ per year from the plant’s emissions (roughly half biogenic and half fossil-based) starting in 2029.

Notably, only the biogenic CO₂ can be counted for carbon credits, but capturing the fossil-derived CO₂ will cut Oslo’s annual emissions by an estimated 20%. Captured CO₂ will be shipped to the Northern Lights facility for permanent underground storage. Microsoft -- already the world’s largest corporate buyer of carbon removal – called this deal a significant step in supporting critical climate technology and helping Norway meet its climate targets.