---
description: "Microsoft Will Pay to Capture Carbon from Wood Combustion: The company will buy credits for CO2 produced by Ørsted Asnaes Power Station."
title: Microsoft Will Pay to Capture Carbon from Wood Combustion - Energy Theory
image: https://energytheory.com/wp-content/uploads/2023/05/Microsoft-Will-Pay-to-Capture-Carbon-from-Wood-Combustion.jpg
---

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# Microsoft Will Pay to Capture Carbon from Wood Combustion

By [Elliot Clark](https://energytheory.com/author/elliot_clark/)November 17, 20235 Mins Read

![Microsoft Will Pay to Capture Carbon from Wood Combustion](https://energytheory.com/wp-content/uploads/2023/05/Microsoft-Will-Pay-to-Capture-Carbon-from-Wood-Combustion-1024x683.jpg "Microsoft Will Pay to Capture Carbon from Wood Combustion")

Microsoft has joined Danish energy firm טrsted in a major project to minimize carbon dioxide emissions from a wood-burning power plant. Microsoft will pay to capture carbon from wood combustion and buy credits for 2.76 million metric tons of CO2 that טrsted’s Asnaes Power Station will collect over an 11-year period. This collaboration is part of Microsoft overall objective of becoming carbon-neutral by 2030.

According to a press release from [טrsted](https://orsted.com/en), it’s one of the greatest agreements any corporation has made too far to reduce carbon dioxide emissions. By eliminating more carbon dioxide from the atmosphere than it produces via its activities, [Microsoft](https://www.microsoft.com/en-in/) aims to achieve **carbon neutrality by 2030**.

However, Microsoft pays carbon from wood but the technology to absorb carbon dioxide emissions is still in its infancy. Several environmental organizations and scholars are skeptical about the efficacy of the plan Microsoft recently helped fund to combat climate change.

טrsted would not have been able to install carbon capture equipment at its power plant without the assistance of Microsoft. “Danish state subsidies and Microsoft contract were both necessary to make this project viable,” טrsted said.

טrsted was able to get a larger, 20-year contract with the [Danish Energy Agency](https://danish-energy-agency.mynewsdesk.com/) (DEA) to absorb CO2 emissions from Asnaes in western Zealand and a second power plant close to Copenhagen thanks to Microsoft assistance. By 2026, the carbon capture technologies should be operational and capable of **capturing a total of 430,000 metric tons of CO2 annually**. For reference, that is roughly similar to the annual CO2 emissions from a single gas-fired power station.

But the fuels used in these power plants, commonly referred to as “biomass,” include wood chips and straw. Additionally, burning biomass as a sustainable energy source is debatable and might include plant matter and agricultural waste.

The EU considers biomass to be its main source of [renewable energy](https://energytheory.com/ge-renewable-energy-wind-power-supply-continues-to-lithuania/). But a large portion of the wood used comes from trees that were felled in forests around Europe and the southeast US. The wood chips burned at טrsted’s Asnaes Power Station, according to the company, “*come from sustainably managed production forests and consists of residues from trimming or crooked trees*.”

**How can burning trees promote environmental sustainability?**

Microsoft pays for carbon from wood, but this is a fact that burning wood produces CO2. The claim is that plants used to produce biomass, such as trees, naturally absorb and store CO2 while they are alive. Replanting the trees and plants will therefore give them a chance to produce fuel that is carbon neutral.

By incorporating systems that can filter CO2 out of the smokestacks of its power plants, טrsted is taking things a step further and preventing it from rising into the atmosphere. In doing so, it hopes to achieve carbon neutrality for its biomass-burning power plants.

They will sell Microsoft credits for each ton of excess carbon dioxide they catch and bury beneath the North Sea. Microsoft can then claim that it has **offset part of its own greenhouse gas emissions using those credits**. This way Microsoft will pay to capture carbon from wood combustion to reduce its CO2 emission.

**Do you know:** According to earlier studies, burning woody biomass can result in higher CO2 emissions than what is absorbed?

This is due to the fact that just capturing smokestack emissions does not take into account all the possible contamination from tree-cutting and wood-transportation activities. Furthermore, it takes time for trees and plants to grow to a point where they can effectively absorb a significant amount of CO2 for humans to depend on.

[Phillip Goodman](https://www.linkedin.com/in/phillipkgoodman), carbon removal portfolio director at Microsoft said in his mail statement, “We think that the details are crucial. An effective carbon capture project would need to use biomass “harvested from appropriate areas” and account for all of its “process” emissions.”

Microsoft refused to disclose the amount it would pay טrsted for carbon reduction credits for this specific project. Recently, Microsoft has placed some big bets on clean energy and climate technology.

Even though some experts believe that the development of such a cutting-edge power plant won’t be feasible for many more decades, it just revealed a plan to buy electricity from a future [nuclear fusion](https://energytheory.com/us-japan-team-successfully-completes-innovative-h2-boron-plasma-nuclear-fusion-technology-test/) power station. Additionally, Microsoft has funded [Climeworks](https://www.googleadservices.com/pagead/aclk?sa=L&ai=DChcSEwiGi5ySp_n-AhXVbCsKHTXrDnQYABAAGgJzZg&ohost=www.google.com&cid=CAESbeD2DE5qCkHAzSJwWQy2jOGYHLWJ3wrOv4veSJADCztNmZtWvS56ny-riQl3vyjlqXBE2DXlZvjz4GtBBt0IOuLW1vGWufkbajWTxtsbtYKPr4tbxE4pK9wV1Tbb0kALvQ) in Switzerland to remove CO2 from the air.

**Microsoft carbon dioxide removal requirements**

Microsoft says it will keep looking for best-in-class natural and engineered solutions that match the following criteria:

- Net negativity: Providing evidence of eliminating atmospheric carbon dioxide over the course of a lifecycle.
- Scientific verification: Third-party scientific experts independently assessed and/or standards confirmed.
- Social and environmental benefits: Avoiding and minimizing environmental and social harm while promoting social fairness and long-term sustainability.

**Also Read:**  [6 Advantages and Disadvantages of Carbon Capture](https://energytheory.com/advantages-and-disadvantages-of-carbon-capture/)

**Understanding the criteria**

Microsoft is paying for carbon from wood and obtains credits from a variety of high-quality carbon-reduction options. The company will prioritize proposals that demonstrate the ability to achieve high-quality, high-volume improvements when selecting projects for the future year.

- **Low-durability solutions:** Forestry and soil-based projects often have a lifespan of up to 100 years and have considerable volume potential in the immediate term. The company prioritizes proposals that exhibit clear calculations and procedures.
- **Medium-durability solutions:** Biochar and other carbon dioxide utilization techniques trap carbon for 100 to 1,000 years. The company will prioritize projects that give a complete lifecycle study and follow best practices in feedstock and disposal. Also, they do not pose any human health risks.
- **High-durability solutions:** Direct air capture, biomass carbon removal and storage, and mineralization all have a lifespan of over 1,000 years. The company will prioritize projects that include responsible storage, monitoring strategies, and full lifecycle analyses.

**Source:** [טrsted News](https://orsted.com/en/media/newsroom/news/2023/05/20230515676011)

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[Elliot Clark](https://energytheory.com/author/elliot_clark/)

Elliot is a passionate environmentalist and blogger who has dedicated his life to spreading awareness about conservation, green energy, and renewable energy. With a background in environmental science, he has a deep understanding of the issues facing our planet and is committed to educating others on how they can make a difference.

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