Microsoft Bets Big on Europe’s Carbon Storage Future

Microsoft and Equinor expand Northern Lights, setting a bold new pace for CCUS growth in Europe

22 Sep 2025

Europe’s push to cut industrial emissions has gained momentum after Microsoft agreed to expand its partnership with Equinor on Northern Lights, Norway’s flagship carbon storage project. The move is seen as a significant step towards making carbon capture a commercially viable industry.

Most carbon capture schemes to date have relied heavily on state subsidies and oil company support, leaving banks reluctant to commit. Microsoft’s long-term agreement to purchase storage capacity provides the financial certainty investors have sought. Northern Lights, backed by Equinor, Shell and TotalEnergies, has already drawn NKr7.5bn in investment and aims to increase capacity from 1.5mn tonnes annually to more than 5mn tonnes by 2030.

Beyond scaling up storage, Microsoft is contributing digital tools to improve monitoring and verification. These systems are intended to demonstrate that carbon is safely stored underground, addressing a common criticism that the industry lacks transparency. Reliable data could help build public trust and regulatory acceptance of the technology.

Analysts say the deal could serve as a template for other corporate buyers, offering a way for multinationals to secure emissions reductions while meeting climate commitments. Large-scale contracts, they argue, not only support financing but also confirm that carbon storage is moving towards commercial maturity.

However, hurdles remain. Lengthy permitting processes, community opposition and high upfront costs continue to slow deployment. Even so, the involvement of a global technology company is viewed as evidence that carbon storage is shifting from pilot projects to broader market adoption.

While the immediate benefits focus on Norway, the agreement strengthens Europe’s position in the emerging carbon storage sector, combining industrial capacity, financial backing and digital innovation to advance climate solutions at scale.