Microsoft has signed a seven-year carbon removal agreement with Danish bioenergy carbon capture and storage (BECCS) firm BioCirc, securing 650,000 tons of carbon removal credits. The transaction marks the tech giant’s first publicly announced off-take agreement since adjusting its carbon procurement strategy earlier this year.
Under the terms of the agreement, Copenhagen-based BioCirc will deliver approximately 100,000 Carbon Removal Units (CRUs) annually to Microsoft from the second half of 2026 through 2032. The captured biogenic carbon dioxide will be extracted from carbon capture units installed at five of BioCirc’s eight operational Danish biogas plants, located in Favrskov, Vesthimmerland, Haderslev, Grønhøj, and Vinkel. The liquefied gas will then be transported and permanently sequestered in Ineos’ sub-surface CO2 storage facility in the North Sea.
BioCirc operates as a large-scale biomethane and biomass processing infrastructure firm with an annual biomethane capacity of 1.9 to 2 TWh. The company confirmed that all organic feedstock utilized across its plants complies with Denmark’s strict sustainability requirements, and all facilities utilize rigorous methane detection and leak-prevention technologies.
“BioCirc’s project offers a permanent and scalable approach to CO2 removal while contributing to a broader transition of the energy system,” said Phillip Goodman, Director of Carbon Removal Portfolio at Microsoft. “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.”
Bertel Maigaard, Group CEO of BioCirc, described the off-take agreement as a vital endorsement of the firm’s circular energy model, which pairs utility-scale biogas production with permanent carbon capture. “The agreement is a major milestone for BioCirc and an important validation of our approach to delivering permanent CO2 displacement,” Maigaard stated.
The deal arrives on the heels of industry reports indicating that Microsoft was “pausing” certain carbon removal purchases. Microsoft has since clarified that it is not halting procurement entirely, but rather adjusting the volume and deployment velocity of its global carbon removal portfolio. It remains unconfirmed whether this specific contract was finalized prior to the strategic shift.
