CO280, a Vancouver-based developer of large-scale carbon dioxide removal (CDR) projects, has announced a major offtake agreement with Microsoft to purchase 3.685 million tonnes of CDR over 12 years. The agreement, one of the largest of its kind to date, involves capturing and permanently storing biogenic CO2 emissions from a U.S. pulp and paper mill. The project showcases a scalable approach to CDR by retrofitting existing industrial infrastructure and is part of CO280’s broader effort to develop multiple CDR sites across North America.
CO280 Signs Landmark 3.69 Million Tonne Agreement with Microsoft to Scale-up Carbon Dioxide Removal in the US Pulp and Paper Industry
VANCOUVER, BC, April 11, 2025 /PRNewswire/ — CO280, a leading developer of large-scale carbon dioxide removal (CDR) projects, today announced a historic offtake agreement with Microsoft from a project that will capture and permanently store biogenic carbon emissions from a U.S. pulp and paper mill. Under the agreement, Microsoft will purchase 3.685 million tonnes of CDR over 12 years. This agreement represents one of the largest engineered CDR purchases to date.
The agreement underscores Microsoft’s confidence in CO280’s approach to scaling permanent CDR by retrofitting existing pulp and paper mills to capture biogenic CO2 from boiler stack emissions for permanent geological storage. The capture technology for this project will be supplied by CO280 partner, SLB Capturi. CO280 is developing more than 10 projects, with five high-priority projects poised to deliver CDR by 2030.
“The agreement with Microsoft is a significant milestone for CO280 and the CDR market,” stated Jonathan Rhone, co-founder and CEO of CO280. “CO280 is committed to delivering the highest quality, permanent carbon dioxide removal while supporting the economic and environmental health of the communities we serve. We’re incredibly grateful to Microsoft for their collaboration, leadership, and commitment to CDR excellence.”
Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft stated, “Microsoft is pleased to announce this deal with the team at CO280, which has proven how to combine innovative engineering with strong commercial development towards creating affordable and scalable carbon removal solutions. The CO280 strategy of adding carbon removal to existing paper mills is an efficient way to quickly scale carbon removal and bolster investment and jobs into timberland communities across the United States.”
CO280’s Practical Approach to CDR Leverages Existing Pulp and Paper Infrastructure
CO280’s strategy leverages the existing operating model of the U.S. pulp and paper industry, offering an efficient, repeatable pathway for scaling CDR. The key advantages include:
– Rapid Scalability: U.S. pulp and paper mills emit 88 million tonnes of biogenic CO2 per year, which represents a significant opportunity to implement large-scale CDR. Retrofitting mills with carbon capture and storage leverages existing mill infrastructure and biomass supply chains reducing project complexity, cost, and risk. CO280’s approach to standardizing project design, business model, and financing with pulp and paper partners will accelerate replication and deployment.
– Sustainable Biomass Utilization: The American pulp and paper industry is committed to sustainable biomass sourcing. These mills, which produce essential products such as packaging and sanitary products, prioritize forest health and maintain high certification standards. 97% of wood used in the industry goes to mills with Sustainable Forestry Initiative (SFI) certification, with 90% going to mills with both Forest Stewardship Council (FSC) and SFI certifications. Many mills only use residual biomass and recycled content to make pulp. All CO280 projects will adhere to the leading voluntary carbon market biomass sustainability standards.
– Energy Efficiency: CO280 projects can use excess waste heat and/or waste biomass to power the carbon capture plants, which minimizes environmental impact while increasing the projects’ overall sustainability.
– Proximity to CO2 storage: The U.S. has some of the best geology in the world for CO2 storage, and more than 75% of U.S. pulp and paper mills are located within 100 miles of geologic storage sites. Additionally, the U.S. has a growing network of CO2 transportation and storage service providers that are building the infrastructure to safely and permanently sequester captured CO2.
Driving Local Economies and Creating Jobs in Mill Communities
This agreement with Microsoft will advance critical climate goals, as well as stimulate the local economies and create jobs for communities where pulp and paper mills are located. By investing in a critical American industry, CO280 helps ensure the long-term competitiveness of the forest products industry, protecting existing and creating new jobs at mill sites. CO280’s unique partnership model backed by long-term CDR offtake agreements will bring billions of new capital investment to the industry, fostering sustainable economic growth, and supporting communities that rely on the forest products industry.
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