Microsoft has committed to purchasing 1.1 million tonnes of permanent carbon removals from Hafslund Celsio over the next decade.
The deal anchors the commercial viability of Oslo’s waste-to-energy carbon capture and storage (CCS) project—one of the world’s first in its sector.
CO₂ captured from 2029 will be permanently stored under the Norwegian seabed by Northern Lights, supporting Microsoft’s carbon-negative goal and Norway’s Paris Agreement targets.
Hafslund Celsio has signed a landmark agreement to supply Microsoft with 1.1 million tonnes of permanent carbon removals over a 10-year period. The contract is a major boost for Hafslund Celsio’s full-scale carbon capture and storage (CCS) project at Norway’s largest waste-to-energy plant in Oslo.
“The agreement with Microsoft is a significant contribution to the commercial success of Hafslund Celsio’s carbon capture and storage project,” said Martin S. Lundby, CEO of Hafslund Celsio. “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.”
The CCS initiative is part of Project Longship, Norway’s national carbon capture program. It will begin capturing CO₂ in 2029 and send it for permanent storage beneath the Norwegian continental shelf via Northern Lights, the storage component of Longship. The project marks one of the world’s first full CCS chains in the waste management industry.
By combining waste-to-energy with carbon capture, the project delivers a threefold benefit:
It handles residual, non-recyclable waste.
It generates carbon-free energy by using excess heat.
It removes biogenic CO₂ from the atmosphere via permanent geological storage.
“This contract marks an important milestone for waste-to-energy and demonstrates the carbon removal potential in this industry, which will help new projects establish a pathway towards a sound business case,” said Jannicke Gerner Bjerkås, Director CCS and Carbon Markets at Hafslund Celsio. “Our CCS project will contribute to Microsoft meeting its carbon negativity goal while also supporting national Norwegian commitments under the Paris Agreement.”
Microsoft sees the project as a crucial part of its long-term sustainability strategy.
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“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,” said Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft. “We appreciate Hafslund Celsio’s central role in Project Longship and are pleased to see this project develop.”
This agreement sets a precedent for integrating climate technology in waste infrastructure, signaling new commercial pathways for permanent carbon removals globally.
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