May 6, 2024 - Energy & Environment

Microsoft's big new removal deal — with caveats in tow

Illustration of the Microsoft logo splitting the earth into four sections

Illustration: Sarah Grillo/Axios

Microsoft and Stockholm Exergi this morning announced a deal that would potentially see the Swedish firm provide 3.3 million tons worth of carbon removal over 10 years starting in 2028.

Why it matters: The companies claimed it "represents the world's largest permanent removals deal to date."

State of play: Removal certificates would be generated via Stockholm Exergi's planned bio-energy with carbon capture and storage plant in Sweden.

  • A Stockholm Exergi biomass-fed combined heat and power plant would have CO2 capture installed.
  • Meanwhile, the process is viewed as carbon-negative because biomass feedstocks absorb CO2 when grown.

Yes, but: Stockholm Exergi has not made a final investment decision.

  • The announcement notes they're seeking government aid and more removal buyers for the project.

The bottom line: It's a potentially big deal.

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