Microsoft Azure: Microsoft to purchase one million tons of carbon energy credits

May 24, 2024 | Posted by Abdul-Rahman Oladimeji

Microsoft is buying one million tons of carbon removal credits from a renewable energy company in Denmark, following its aim to invest in carbon capture technology. The tech giant will purchase the credits from Avedøre power station in Copenhagen, which is operated by energy company Ørsted, in a deal that will run for 10 years from 2026.

Ørsted claims the process creates negative emissions. “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,” the company said in a statement.

Ole Thomsen, senior vice president and head of Ørsted’s Bioenergy business, said: "This expanded collaboration with Microsoft is a testament to our shared vision for a sustainable future. By combining Ørsted's expertise in bioenergy carbon capture and storage with Microsoft's commitment to reducing its carbon footprint, we’re showcasing how strategic relations can accelerate the transition to a greener economy."