Copenhagen Infrastructure Partners (CIP) and Vestforbrænding have, through their joint venture Gaia ProjectCo P/S, entered into a multi-year agreement with Microsoft for the permanent removal of up to 2.95 million tons of CO2 from 2029. This is stated by the parties behind Gaia in a press release.
The agreement is one of the first of its kind in the waste-to-energy sector and includes the sale of so-called Carbon Removal Units (CRUs), which represent the biogenic share of the captured and stored CO2. The surplus heat from the CO2 capture plant can also be integrated into Vestforbrænding's district heating network and supply heat to an additional 10,000 households.
- The agreement with Microsoft is a defining milestone for the Gaia project. This not only confirms the technical and commercial maturity that Vestforbrænding has worked hard to establish, but also reflects how this maturity has been further strengthened through CIP's entry into the project. It confirms the strength of our partnership with CIP and demonstrates why we chose to join forces – by combining our operational expertise with their ability to scale and deliver complex infrastructure, says Steen Neuchs Vedel, CEO of Vestforbrænding.
The sale of CRUs is crucial for Gaia to capture and store up to 500,000 tonnes of biogenic and fossil CO2 per year. As Denmark is regulated by the EU Waste Framework Directive, the captured and stored CO2 constitutes the inevitable waste fraction after all steps in the waste hierarchy have been followed.
- We are proud to work together with Microsoft on the purchase and sale of permanent carbon removal. This agreement, through Gaia, marks the first agreement between CIP, through CI ETF I, and Microsoft, and we are optimistic that it represents the start of a long-term relationship between the parties. The agreement is also significant for CIP as it represents the first offtake transaction by CIP for environmental attributes (e.g. CRU), signaling CIP’s growing role in the development of new environmental products and technologies, said Nikos Samaritis, Managing Director of CIP’s CI ETF I fund.
Gaia was prequalified for the second round of the government CCS tender and plans to bid in December. The project has secured almost all necessary permits and was previously selected as a finalist in the Danish Energy Agency’s first CCS tender.
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