Microsoft signed an agreement to receive permanent carbon removals for a project in Denmark.

The software company signed an agreement for a long-term multi-year offtake for a waste-to-energy carbon capture storage retrofit with CIP and Vestforbrænding’s joint venture, Gaia. This partnership demonstrates the commercial viability of a decarbonization pathway for the waste-to-energy industry.

Installing the carbon capture technology will allow the facility to expand its district heating capacity, supplying heat to an additional 10,000 or more homes.

The offtake is for 2.95 million tons that will start in 2029. The Carbon Removal Units (CRUs) represent the biogenic portion of CO2 captured and stored, net of process emissions. The sale of CRUs is a key enabler for Gaia to capture and store up to 500,000 tons of biogenic and fossil CO2 a year.

Denmark is regulated by the EU Waste Framework Directive, and the CO2 captured and stored represents unavoidable fraction of waste after all aspects of the waste mitigation hierarchy has been met.

“Gaia’s approach of retrofitting waste-to-energy facilities — in combination with the enforcement of the EU Waste Framework Directive — helps unlock more carbon-free energy while ensuring waste prevention and recycling remain top priorities,” said Brian Marrs, senior director of energy and carbon removal at Microsoft, in a statement. “We’re pleased to see experienced developers like Copenhagen Infrastructure Partners, through its Energy Transition Fund entering the carbon removal market and look forward to ongoing collaboration.”