Agreement set scale-up carbon dioxide removal in the US pulp and paper industry.
CO280, a leading developer of large-scale carbon dioxide removal (CDR) projects, has announced a historic offtake agreement with Microsoft from a project that will capture and permanently store biogenic carbon emissions from a US pulp and paper mill.
Under the agreement, Microsoft will purchase 3.685 million tonnes of CDR over 12 years – 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.
Jonathan Rhone, co-founder and CEO, CO280, said:
“CO280 is committed to delivering the highest quality, permanent carbon dioxide removal while supporting the economic and environmental health of the communities we serve.”
Brian Marrs, Senior Director of Energy & Carbon Removal, Microsoft, said: ” 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 strategy leverages the existing operating model of the US pulp and paper industry, offering a repeatable pathway for scaling CDR. The key advantages include:
- Rapid Scalability: CO280’s approach to standardizing project design, business model and financing with pulp and paper partners will accelerate replication and deployment.
- Sustainable Biomass Utilization: Ninety-seven per cent 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 US 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 US has a growing network of CO2 transportation and storage service providers that are building the infrastructure to safely and permanently sequester captured CO2.
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.
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.
