• BioCirc will supply Microsoft with 650,000 high-durability carbon removal units over seven years, with deliveries beginning in the second half of 2026.
• The credits will come from biogenic CO₂ captured at five Danish biogas plants and stored beneath the Danish North Sea through Project Greensand.
• The deal combines corporate carbon removal demand, Danish public support, and CCS infrastructure to help finance a full value chain for durable removals.

Denmark is moving deeper into the carbon removal economy, as BioCirc signs its largest agreement to date with Microsoft for 650,000 high-durability carbon removal units over seven years.

The deal will support Microsoft’s target to become carbon negative by 2030. It also gives BioCirc a long-term offtake partner for carbon removals generated through its bioenergy carbon capture and storage platform.

Under the agreement, BioCirc will deliver 100,000 carbon removal units a year from 2026 through 2032. Initial deliveries will begin in the second half of 2026, with partial delivery that year as the project ramps up.

Each unit represents one metric ton of carbon dioxide removed from the atmosphere and permanently stored. The removals will come from five BioCirc biogas plants in Denmark, beginning with Favrskov Biogas. Vesthimmerland Biogas, Haderslev Biogas, Grønhøj Biogas and Vinkel Biogas will follow.

“The agreement is a major milestone for BioCirc and a meaningful validation of our approach to delivering durable carbon removal,” says Bertel Maigaard, Group CEO at BioCirc,“We are thrilled to work with organizations such as Microsoft that are helping advance the market for durable carbon removal while addressing residual emissions and supporting global climate goals”.

A Full CCS Value Chain From Biogas To Offshore Storage

The project will capture biogenic CO₂ from BioCirc’s biogas operations, then send it for permanent geological storage through Project Greensand in the Danish North Sea.

The captured CO₂ will be injected around 1,500 to 1,800 metres beneath the seabed at the Greensand Future site. BioCirc said the project creates a complete carbon capture and storage value chain, from decentralised capture at biogas facilities to offshore storage.

That structure matters for investors and policymakers. Carbon removal markets still face questions around cost, scale, durability and verification. BioCirc’s model links existing biogas infrastructure with CCS, which could reduce the need for entirely new industrial systems.

The company will account for relevant lifecycle emissions, including biomass sourcing, facility operations and downstream transport. BioCirc said this will ensure the credits reflect net carbon removal.

The biomass used in the project will also need to meet Danish eligibility requirements. The company said its facilities meet or exceed Denmark’s methane detection and release prevention standards, including requirements linked to operational procedures and plant integrity.

“The BioCirc project offers a durable and scalable approach to carbon removal while contributing to broader decarbonization of the energy system,” says Phillip Goodman, Director of Carbon Removal Portfolio at Microsoft. “High-quality and scalable carbon removal solutions with rigorous carbon accounting, such as BioCirc’s, are critical to the development of a robust global carbon removal market.”

RELATED ARTICLE: Microsoft Pauses New Carbon Removal Credit Purchases

Public Support And Corporate Demand Shape Project Economics

The agreement sits at the intersection of public climate policy and private-sector carbon procurement.

The project is supported by the Danish Energy Agency through the NECCS fund. BioCirc said both the NECCS subsidy and Microsoft’s carbon dioxide removal purchase are necessary to make the project financially viable.

That mix reflects a broader reality for the carbon removal market. Durable removals remain expensive, and many projects need both public funding and long-term corporate buyers to move from development into deployment.

For Microsoft, the deal adds to a growing portfolio of engineered and nature-linked carbon removal agreements. The company has become one of the most active corporate buyers in the market, as it works to address residual emissions that remain after direct emissions cuts.

For BioCirc, the agreement helps scale an integrated model that combines biogas production, renewable energy and CO₂ capture and storage. The company said this approach can support cost-effective CO₂ abatement while helping decarbonize hard-to-abate sectors, including agriculture and transport.

What Executives And Investors Should Watch

The strategic relevance extends beyond one corporate offtake agreement.

Europe has more than 1,500 biomethane production sites, according to BioCirc. If the Danish model proves technically and financially repeatable, it could create a pathway for wider deployment across the continent.

That would matter for companies under pressure to secure high-quality carbon removals before demand outpaces available supply. It would also give governments another route to connect rural bioeconomy assets with national climate targets.

The BioCirc-Microsoft deal shows where the durable carbon removal market is heading. Buyers want measurable removals, regulators want credible accounting, and project developers need bankable revenue. Denmark is now testing how those pieces can work together at scale.

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