Microsoft has entered into a carbon removal agreement with Gaia, a joint venture between Copenhagen Infrastructure Partners (CIP) and Danish waste management firm Vestforbrænding, for the purchase of 2.95 million tonnes of carbon removal credits.
The credits will be generated by retrofitting a carbon capture and storage (CCS) system at Gaia’s Energy-from-Waste (EfW) facility in Nordhavn, Hovedstaden—Denmark’s largest EfW plant, which processes approximately one million tonnes of waste annually. The facility currently incinerates around 39% of that waste.
The CCS system is designed to capture up to 500,000 tonnes of CO₂ per year. Captured carbon will be transported and permanently stored underground. A portion will contribute towards Vestforbrænding’s carbon neutrality goals, with the remainder issued as carbon removal credits for offtake by third parties.
Credit delivery is scheduled to begin in 2029 and will account specifically for the biogenic portion of the captured CO₂—carbon originating from organic matter such as plants and waste biomass. This qualifies as negative emissions under global carbon accounting standards. The facility is expected to become operational by 2026, subject to final approvals and financing.
Brian Marrs, Microsoft’s Senior Director for Energy & Carbon Removal, said the project aligns with broader policy and sustainability objectives: “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.”
The deal marks Microsoft’s first agreement with CIP and signals what both parties suggest could become a long-term partnership. Nikos Samaritis, Managing Director of CIP’s Energy Transition Fund, described the contract as “the start of a long-term relationship between the parties.”
Beyond carbon capture, the retrofit will also enhance the facility’s district heating capacity, enabling it to supply heat to over 10,000 local households.
Steen Neuchs Vedel, CEO of Vestforbrænding, welcomed the deal, stating: “The offtake agreement with Microsoft is a defining milestone for the Gaia project. It not only validates the technical and commercial maturity that Vestforbrænding has worked hard to establish but also reflects how this maturity has been further strengthened through CIP’s entry into the project.”
CIP holds a majority stake in Gaia through its Energy Transition Fund (CI ETF I), acquired earlier this year. As part of the arrangement, Vestforbrænding will supply flue gas from incineration while Gaia manages the CO₂ capture process.
In May, Gaia was pre-qualified for participation in the Danish Energy Agency’s Carbon Capture and Storage Fund, with final subsidy decisions expected by year-end. Microsoft has been increasingly active in the CCS sector throughout 2025.
Earlier this month, it signed a deal with Hafslund Celsio to purchase 1.1 million tonnes of carbon removal credits from a CCS project at its EfW plant in Oslo. In April, Microsoft also entered into a 12-year agreement with CO280 to procure 3.685 million tonnes of carbon credits from retrofitted pulp and paper mills capturing biogenic carbon from boiler emissions.
