• Ørsted to sell 330,000 tonnes of carbon dioxide removal (CDR) credits to Equinor over 10 years.
• Agreement supports Ørsted’s carbon capture project and Equinor’s strategy to cut emissions by 50% by 2030.
• CDR credits contribute to negative emissions by storing CO2 from sustainable biomass under the North Sea.

Ørsted has signed a major deal with Equinor, agreeing to sell 330,000 tonnes of carbon dioxide removal (CDR) credits over a ten-year period. This is tied to Ørsted’s groundbreaking ‘Kalundborg CO2 Hub’ project, set to capture 430,000 tonnes of CO2 annually from biomass-fired plants starting in 2026. The CO2, sourced from sustainable biomass, will be stored under the North Sea seabed, effectively removing it from the atmosphere and contributing to negative emissions.

This deal is a significant step in addressing the high costs and early-stage development challenges of biomass-based carbon capture. The sale of CDR credits, along with support from the Danish Energy Agency, is crucial to financing the ‘Ørsted Kalundborg CO2 Hub.’

“Equinor shares Ørsted’s commitment to maturing carbon capture and storage technologies,” says Ole Thomsen, Senior Vice President of Ørsted’s Bioenergy business. “We’re pleased to expand our collaboration with Equinor through this agreement.”

Equinor, with ambitions to reduce net scope 1 and 2 greenhouse gas emissions by 50% by 2030, sees this agreement as part of its broader strategy. Up to 10% of its target will be achieved through CDR credits, while the rest will come from absolute emission reductions.

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“We both share the belief that building markets for physical carbon reduction and removal is key,” says Svein Skeie, Senior Vice President of Strategy & Business Development at Equinor.

Ørsted’s project partner, Northern Lights, is responsible for storing the captured CO2 and is co-owned by Equinor, highlighting the close ties between the companies in driving carbon reduction initiatives forward.