Microsoft to Buy 1.1Mt of Carbon Credits From Hafslund Celsio

Microsoft has signed a carbon removal offtake agreement with Oslo-based energy and heat provider Hafslund Celsio to purchase 1.1Mt of carbon credits over a 10-year period. The credits will be generated through a carbon capture and storage (CCS) project at Norway’s largest waste-to-energy (EfW) plant, operated by Hafslund Celsio in Oslo.

The Klemetsrud facility processes approximately 350,000t of residual waste annually, producing both biogenic CO2 from organic materials such as spoiled paper and fossil CO2 from inorganic waste like plastics. Under the agreement, the CCS system is expected to capture around 400,000t/y of CO2 starting in 2029. Carbon credits will be issued only for the biogenic portion, while the fossil CO2 capture is expected to reduce Oslo’s annual emissions by 20%.

“The agreement with Microsoft is a significant contribution to the commercial success of Hafslund Celsio’s carbon capture and storage project. Microsoft’s purchase is a strong recognition of our CCS project and highlights the crucial role of the waste-to-energy sector as a credible provider of permanent carbon removals,” said Martin S. Lundby, CEO, Hafslund Celsio.

The captured carbon will be transported to the Northern Lights storage facility, part of the Norwegian government’s Longship CCS initiative, where it will be permanently stored 2,600m beneath the seabed in the North Sea. Longship is scheduled to begin operations in summer 2025.

“Hafslund Celsio’s project turns waste into valuable carbon dioxide removal, while providing the city of Oslo with heating and helping Norway meet its climate goals. We appreciate Hafslund Celsio’s central role in Project Longship and are pleased to see this project develop,” said Brian Marrs, Senior Director of Energy and Carbon Removal, Microsoft.

This agreement follows another deal between Hafslund Celsio and carbon removal consortium Frontier, whose members include Google and Meta, for 100,000t of carbon removals. It also marks another large-scale purchase in a series of recent commitments by Microsoft, which continues to consolidate its position as the largest corporate buyer of carbon removal credits globally.