Microsoft has signed a landmark deal to purchase 3.69 million metric tonnes of carbon removal credits from CO280, a carbon capture company targeting emissions from the pulp and paper industry. The 12-year agreement is linked to CO280ās first capture facility, expected to launch in 2028 along the Gulf Coast. The facility will trap carbon dioxide directly from mill recovery boilersāa key emissions sourceāand pipe it 40 miles away for permanent storage in a saline aquifer.
The tech giantās move aligns with its ambitious pledge to become carbon-negative, a challenge made more urgent by its 2023 emissions total of over 17 million metric tonnes. While Microsoft has long invested in renewable energy, this partnership addresses so-called āuncuttableā emissionsācarbon that canāt be avoided and must instead be removed. By focusing on biogenic carbon released from burning wood during paper production, the deal marks a shift towards tackling overlooked, yet significant, sources of greenhouse gases.
CO280, led by energy industry veteran Jonathan Rhone, is working with SLB Capturiāa joint venture between SLB and Aker Carbon Captureāto deploy a proven amine-based technology for industrial-scale CO2 capture. The projectās first phase will remove around 40% of the millās biogenic emissions and 30% of its total carbon footprint. A second phase is already in development, aiming to double those figures and deepen the sectorās climate impact.
Beyond environmental goals, the partnership offers financial benefits. Mill operators will co-own the capture systems and receive a share of the carbon credit sales, currently priced at about $200 per tonne. U.S. tax incentives under the Inflation Reduction Act could further reduce costs for buyers. Though CO280 has worked with climate funds backed by Google and Meta in the past, this deal with Microsoft is its most significant yetāboth in size and in its potential to make a global dent in industrial emissions.