Microsoft signs Danish carbon removal deal with BioCirc
Microsoft has signed a long-term carbon removal agreement with BioCirc for 650,000 tonnes of carbon removal credits, reinforcing continued corporate investment in engineered carbon removal and bioenergy with carbon capture and storage (BECCS).
The seven-year agreement will see BioCirc supply Microsoft with carbon removal units generated from carbon capture systems installed at five of its biogas facilities in Denmark. The captured CO₂ will be transported and permanently stored at INEOS’ North Sea carbon storage facility.
Under the deal, Microsoft will receive around 100,000 carbon removal units annually between the second half of 2026 and 2032, with an initial partial delivery scheduled for 2026.
The agreement centres on BECCS technology, which combines renewable bioenergy generation with carbon capture and permanent geological storage. The process is increasingly viewed as one of the few scalable pathways capable of delivering negative emissions by removing CO₂ from the atmosphere while generating renewable energy.
Phillip Goodman, Director of Carbon Removal Portfolio at Microsoft, said scalable and verifiable carbon removal solutions would be essential to building a mature global carbon market.
“Scalable, high-quality CO₂ removal solutions with high traceability, like BioCirc’s, are crucial for the development of a robust global market for carbon removal,” he said.
BioCirc said the partnership would help expand its integrated platform combining biogas production, renewable energy generation and carbon capture infrastructure. The company argues that its model can support decarbonisation across hard-to-abate sectors while displacing fossil-based energy systems.
Bertel Maigaard, Group Chief Executive of BioCirc, described the agreement as a significant milestone for the company and broader carbon removal sector.
“The agreement is a major milestone for BioCirc and an important validation of our approach to delivering permanent CO₂ displacement,” he said.
The Danish company added that all biomass used within the programme complies with national sustainability standards and methane management regulations designed to minimise leakage risks across its operations.
The announcement comes amid heightened scrutiny of the voluntary carbon removal market following reports that Microsoft had slowed the pace of some carbon removal procurement activities. However, the company later clarified that it was continuing purchases while adjusting procurement volumes and timelines.
Microsoft remains one of the world’s largest buyers of engineered carbon removal credits as part of its ambition to become carbon negative by 2030. The company has signed several major BECCS-related agreements in recent months, including deals involving Svante Technologies, Meadow Lake Tribal Council and the Gaia carbon capture venture backed by Copenhagen Infrastructure Partners.
The latest agreement also highlights Denmark’s growing role in Europe’s carbon capture and storage industry, supported by expanding North Sea CO₂ transport and storage infrastructure and increasing investment in low-carbon industrial technologies.
