Operationalizing carbon capture and clean energy production via biomass-fired power plants.
CDR Type
BECCS
Location
Denmark
Focus Areas
Evaluated financial additionality through a review of Danish policy support and quantified the monetary value of subsidies in parallel with financing through the voluntary carbon market.
Examined technical quality and readiness to execute through scientific analyses, engineering review, and expert interviews.
Assessed the sustainability of biomass sourcing and utilization for durable storage of biogenic carbon, in alignment with Carbon Direct’s industry guidance.
In 2021, Microsoft signed a memorandum of understanding with Ørsted, a leading clean energy company, to accelerate the operationalization of carbon capture and clean energy production via biomass-fired combined heat and power plants. Microsoft’s role was to ensure demand for the carbon dioxide removal credits generated by the project to promote commercial viability.
The Ørsted bioenergy with carbon capture and storage (BECCS) project is based in Kalundborg and Copenhagen, Denmark and plans to capture and store an estimated 430,000 tonnes of biogenic carbon dioxide per year. Along with support from the Danish Energy Agency (DEA), Microsoft has agreed to purchase 2.67 million tonnes of permanent carbon dioxide removal from the Kalundborg plant over an 11-year timeframe.
"Our long-term agreement with Ørsted for high-quality carbon dioxide removal sends a strong demand signal to scale the market, and showcases the power of partnership to help the world accelerate the clean energy transition."
Melanie Nakagawa
Chief Sustainability Officer, Microsoft
Carbon Direct Diligence
To ensure that this first-of-its-kind project was technically viable and would deliver these credits, Microsoft selected Carbon Direct to conduct science-backed technical diligence. This involved an in-depth evaluation of the Kalundborg plant building upon the Criteria for High-Quality Carbon Dioxide Removal, with a particular emphasis on additionality. To be fully additional, a project must demonstrate that the project is not required by existing laws or regulations and that carbon financing is required for it to be financially feasible.
“The Ørsted BECCS project is not only a work of engineering excellence, it is a testament to the power of collaboration,” says A.J. Simon, Director of Industrial Decarbonization at Carbon Direct. “Through mutual trust and respect for each other’s scientific and technical expertise, Microsoft, Ørsted, and Carbon Direct were all willing to share and incorporate critical details on all aspects of the project. The outcome of that is the acceleration of durable carbon dioxide removal in Europe.”
Behind the Credit
How Ørsted removes carbon dioxide

Carbon dioxide removal with the Ørsted BECCS CHP Plant.
Ørsted operates a biomass-fired, combined heat and power (CHP) facility as a utility, servicing an industrial production complex and a district heating system in Kalundborg, Denmark. By adding amine-based CCS to the existing bioenergy plant, Ørsted will be able to capture carbon dioxide for permanent geologic storage under the North Sea.
The energy feedstock for the Ørsted BECCS facility is sustainable biomass — in this case, traceable residues from forests in northern Europe with strong regulatory oversight and environmental protections. “We’re proud to once again drive a landmark offtake agreement with Ørsted,” says Rafael Broze, Senior Program Manager of Carbon Removal at Microsoft. “Carbon Direct’s technical diligence helped to validate their technology as well as ensure measurable impact as a durable climate change solution.” Carbon Direct’s industrial decarbonization team provided Microsoft with expert support to advise on any technical risks that might impact the execution of the projects over time. In parallel, the biomass experts at Carbon Direct assessed Ørsted’s sourcing of biomass to ensure its growing energy needs align with Carbon Direct’s sustainable biomass sourcing principles.
What’s next
Looking ahead, Ørsted is scaling its work with Microsoft and Carbon Direct to advance quality in the voluntary carbon market.
“This expanded collaboration with Microsoft and Carbon Direct is a testament to our shared vision for a sustainable future,” says Ole Thomsen, Senior Vice President and Head of Ørsted’s Bioenergy business. “We’re showcasing how strategic relations can accelerate the net zero transition.”