In a landmark deal, \u00d8rsted will sell a further one million tonnes of carbon removal over a ten-year period to Microsoft from Aved\u00f8re Power Station, which is part of the bioenergy carbon capture and storage (BECCS) project \u2018\u00d8rsted Kalundborg CO2 Hub\u2019. This new agreement builds on an existing commitment by Microsoft to buy 2.67 million tonnes from Asn\u00e6s Power Station, bringing the total purchase under contract to 3.67 million tonnes of CO2.<\/p>\n
As part of the \u2018\u00d8rsted Kalundborg CO2 Hub\u2019, \u00d8rsted will establish carbon capture at its wood chip-fired Asn\u00e6s Power Station in Kalundborg in western Zealand and at the Aved\u00f8re Power Station\u2019s straw-fired boiler in the Greater Copenhagen area. The 430,000 tonnes per year of biogenic CO2\u202ffrom the combined heat and power plants will be shipped to a storage reservoir in the Norwegian part of the North Sea and stored permanently. The ‘\u00d8rsted Kalundborg CO2 Hub’ is set to become operational by the beginning of 2026.\u202f\u202f<\/p>\n
The new agreement between \u00d8rsted and Microsoft entails that Microsoft will take one million tonnes of carbon removal from\u202fthe straw-fired unit at Aved\u00f8re Power Station starting from 2026. The combined heat and power plant converts locally sourced straw, which is a by-product of agriculture, into electricity and district heating. By capturing the biogenic carbon from biomass-fired combined heat and power plants and storing it underground, it is possible to not only reduce, but also remove CO2 from the atmosphere, as biogenic carbon from sustainable biomass is part of a natural biogenic carbon cycle. Thereby, you create negative emissions.<\/p>\n
The collaboration between \u00d8rsted and Microsoft will play a vital role in developing the ‘\u00d8rsted Kalundborg CO2 Hub\u2019, as bioenergy-based carbon capture and storage is still in its early stages. Even though the project was awarded a subsidy from the Danish Energy Agency, the revenue from the sale of carbon removal certificates was included before investment decision and then in the offer submitted through the Danish subsidy scheme, which put great emphasis on competitive offers with the lowest amount of subsidy per tonne.<\/p>\n
According to the UN\u2019s Intergovernmental Panel on Climate Change\u2019s (IPCC) latest report, carbon removal technologies such as BECCS are crucial for limiting global warming. This underscores the importance of projects such as the ‘\u00d8rsted Kalundborg CO2 Hub\u2019, which can support companies like Microsoft in achieving its sustainability goals and contribute to achieving the global climate targets.<\/p>\n
Ole Thomsen, Senior Vice President and Head of \u00d8rsted\u2019s Bioenergy business, says: “This expanded collaboration with Microsoft is a testament to our shared vision for a sustainable future. By combining \u00d8rsted’s expertise in bioenergy carbon capture and storage with Microsoft’s commitment to reducing its carbon footprint, we\u2019re showcasing how strategic relations can accelerate the transition to a greener economy.”\u202f\u202f<\/p>\n
For Microsoft, the agreement represents another large-scale carbon removal deal towards the company\u2019s aspiration to be carbon-negative in 2030.\u202f<\/p>\n
Brian Marrs, Senior Director of Energy & Carbon Removals at Microsoft, says: \u201cWe\u2019re proud once again to announce a landmark offtake agreement with \u00d8rsted, which is pioneering responsible carbon removal development in Denmark while also meeting the needs of a decarbonised energy system. The urgency around climate goals means translating great planning into rapid action \u2013 and \u00d8rsted remains a valuable collaborator in bringing big ideas to life. Today\u2019s announcement is yet another tangible step towards building the technologies and commercial capabilities towards becoming carbon-negative by 2030.\u201d<\/p>\n
Facts about \u2018\u00d8rsted Kalundborg CO2 Hub\u2019:\u202f <\/p>\n
In May 2023, the Danish Energy Agency (DEA) awarded \u00d8rsted a 20-year subsidy contract for its carbon capture and storage (CCS) project \u2018\u00d8rsted Kalundborg CO2 Hub\u2019.\u202f
\n\u00d8rsted will establish carbon capture at the wood chip-fired Asn\u00e6s Power Station in Kalundborg in western Zealand and at Aved\u00f8re Power Station\u2019s straw-fired boiler in the Greater Copenhagen area.\u202f
\n\u00d8rsted will capture 150,000 tonnes of biogenic CO2 per year from the straw-fired unit at Aved\u00f8re Power Station. The CO2 will initially be transported by lorry to Asn\u00e6s Power Station until an improved CO2 infrastructure can be established.\u202f
\nThe straw-fired unit at Aved\u00f8re Power Station converts locally sourced straw into electricity and district heating. The straw is a by-product of agriculture.\u202f
\n\u00d8rsted will capture 280,000 tonnes of biogenic CO2 per year from the wood chip-fired unit at Asn\u00e6s Power Station, which will also function as a CO2 hub, handling and shipping biogenic CO2 from both the Aved\u00f8re and Asn\u00e6s combined heat and power stations to the Northern Lights storage reservoir in the Norwegian part of the North Sea.\u202f
\nThe wood chip-fired unit at Asn\u00e6s Power Station converts wood chips from primarily the Baltics into electricity, district heating, and process steam for the local industry. The wood chips come from sustainably managed production forests and consist of residues from trimming or from crooked trees.<\/p>\n
For further information, please contact:<\/p>\n
\u00d8rsted Global Media Relations Microsoft Media Relations\u202f\u00a0 About \u00d8rsted
Carsten Birkeland Kj\u00e6r
+45 99 55 77 65
cabkj@orsted.com<\/a><\/p>\n
Morten Sk\u00f8tt\u202f\u00a0
+45 29 22 97 60\u202f\u00a0
moskott@microsoft.com<\/a>\u202f\u00a0<\/p>\n
The \u00d8rsted vision is a world that runs entirely on green energy. \u00d8rsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, renewable hydrogen and green fuels facilities, and bioenergy plants. \u00d8rsted is recognised on the CDP Climate Change A List as a global leader on climate action and was the first energy company in the world to have its science-based net-zero emissions target validated by the Science Based Targets initiative (SBTi). Headquartered in Denmark, \u00d8rsted employs approx. 8,900 people. \u00d8rsted’s shares are listed on Nasdaq Copenhagen (Orsted). In 2023, the group’s revenue was DKK 79.3 billion (EUR 10.6 billion). Visit orsted.com<\/a> or follow us on Facebook<\/a>, LinkedIn<\/a>, Instagram, and X<\/a>.<\/p>\n