Microsoft and Ørsted have previously entered into an agreement whereby Microsoft will purchase 2.67 million tonnes of CO2 removal from the Asnæs power plant. On Wednesday, the two parties extended that agreement so that the IT giant will purchase an additional 1 million tonnes of CO2 removal over a ten-year period. However, this additional million tonnes of CO2 will be captured at the Avedøre power plant. Ørsted states this in a press release.
The CO2 capture and storage projects at Asnæsværket and Advedøreværket are part of the ‘Ørsted Kalundborg CO2 Hub’, which was awarded a 20-year contract by the Danish Energy Agency in May 2023 and is expected to be operational in early 2026.?
The Avedøreværket plant is fired with straw, which is converted into electricity and district heating. By capturing CO2 from biomass-fired CHP plants and storing it underground, it is possible not only to reduce, but also to remove CO2 from the atmosphere and thus create negative emissions.
- The expansion of our collaboration with Microsoft underlines our shared vision of a sustainable future. By combining Ørsted's expertise in biomass-based CO2 capture and storage with Microsoft's ambition to reduce the company's CO2 footprint, we are showing how strategic relationships can accelerate the green transition, says Ole Thomsen, Senior Vice President and Head of Ørsted's Power Plant Business.
The collaboration between Ørsted and Microsoft will play a crucial role in the development of the 'Ørsted Kalundborg CO2 Hub', as biomass-based CO2 capture and storage is still at an early stage of development. Although the project was awarded support from the Danish Energy Agency, revenue from the sale of CO2 credits was included in the investment decision and subsequently also in the offer submitted through the Danish support scheme, where great emphasis was placed on competitive bids with the lowest support per tons.
For Microsoft, the collaboration is another example of an agreement to remove CO2 on a large scale, supporting the company's ambition to be CO2-negative by 2030.?
- We are proud to once again announce a landmark agreement with Ørsted, which is both groundbreaking in the responsible development of CO2 removal in Denmark and at the same time helps support the transition to a CO2-neutral energy system. To achieve climate goals, we need to turn thorough planning into rapid action – and Ørsted remains a valuable partner when it comes to bringing big ideas to life, says Brian Marrs, Senior Director and Head of Microsoft's Energy and CO2 Removal activities.
Ørsted will capture 280,000 tonnes of biogenic CO2 annually from the wood chip-fired unit at Asnæsværket, while 150,000 tonnes of biogenic CO2 will be captured annually from the straw-fired unit at Avedøreværket.
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