Hafslund Celsio will deliver 1.1 million tons of permanent carbon removal over 10 years to Microsoft.
Published: June 30, 2025
Hafslund Celsio has entered into an agreement with Microsoft to deliver 1.1 million tons of permanent carbon removal over a 10-year period. The deal provides essential financial support for Hafslund Celsio’s full-scale carbon capture project in Oslo and affirms the waste incineration sector as a credible source of durable carbon removal.
As part of Norway’s Longship project, Hafslund Celsio is installing carbon capture technology at Norway’s largest waste incineration plant at Klemetsrud in Oslo. This will be one of the world’s first carbon capture projects in waste management, encompassing the entire value chain from capture to permanent storage. CO₂ capture is expected to begin in autumn 2029. The captured CO₂ will be permanently stored by Northern Lights under the seabed on the Norwegian continental shelf. Waste incineration with carbon capture and storage offers a complete solution for handling non-recyclable residual waste: it addresses the challenge of unrecyclable materials, provides carbon-neutral energy by utilizing excess heat for district heating, and removes CO₂ from the atmosphere by capturing and storing biogenic CO₂.
“The agreement with Microsoft is a significant contribution to the commercial success of Hafslund Celsio’s CCS project. Microsoft’s purchase is a strong endorsement of the project and highlights the vital role of the waste incineration sector in providing permanent carbon removal,” said Martin S. Lundby, CEO of Hafslund Celsio.
“This deal marks a major milestone for the waste incineration industry and showcases the significant carbon removal potential of the sector. It also demonstrates how the sale of carbon removal certificates can help finance new projects. Hafslund Celsio’s CCS project will aid Microsoft in reaching its carbon-negative goal while supporting Norway’s commitments under the Paris Agreement,” said Jannicke Gerner Bjerkås, Director of CCS and Carbon Markets at Hafslund Celsio.
“Hafslund Celsio’s project turns waste into valuable carbon removal while supplying heat to Oslo and helping Norway meet its climate goals,” said Brian Marrs, Senior Director, Energy & Carbon Removal at Microsoft. “We appreciate Hafslund Celsio’s central role in the Longship project and are excited to see its continued development.”
About Hafslund Celsio’s CCS Project
Hafslund Celsio is Norway’s largest company in waste incineration and district heating. It is currently constructing a carbon capture facility at its Klemetsrud incineration plant in Oslo. Starting in 2029, the plant will capture about 350,000 tons of CO₂ annually—the equivalent of emissions from 200,000 cars. Roughly half of this CO₂ will come from biogenic sources like non-recyclable food waste, cardboard, and paper; the remainder will come from fossil sources like non-recyclable plastic. Only the biogenic portion, verified via established C-14 radiocarbon analysis, will be counted as carbon removal. The fossil portion will reduce Oslo’s annual fossil CO₂ emissions by 20%.
The CCS project is made possible through a public-private partnership between the Norwegian government, the City of Oslo, and Hafslund Celsio. It is part of Norway’s state-supported Longship demonstration project, which aims to establish a complete value chain for the capture, transport, and permanent geological storage of CO₂ under the North Sea. This value chain has already been extended through commercial agreements with major emission sources across Northern Europe.
The project’s ambition is to serve as a roadmap for the roughly 500 waste incineration plants across Europe.
Key Timeline:
October 24, 2024: Oslo City Council approved the city’s financial commitment to Hafslund Celsio’s CCS project.
December 18, 2024: The Norwegian Parliament adopted the government’s revised state aid agreement.
January 24, 2025: Hafslund Celsio’s board made the final investment decision to establish the CCS project at Klemetsrud.
January 27, 2025: Hafslund Celsio signed a joint venture agreement with Aker Solutions AS and SLB Capturi Norway AS to execute the project.
April 1, 2025: Agreement signed with Frontier for removal of 100,000 tons of CO₂ in 2029 and 2030.
June 30, 2025: Hafslund Celsio announced the sale of 1.1 million tons of permanent carbon removal to Microsoft over 10 years.
Contact Information:
Hafslund Celsio
Truls E. A. Jemtland
Head of Communications
📧 [email protected]
📞 +47 920 29 480
Microsoft
Cornelia Bjørke-Hill
Director of Communications, Microsoft Norway
📧 [email protected]
📞 +47 907 95 343