Microsoft Signs Deal to Advance Biogenic CO2 Capture in US Industry

CO280, a Canadian carbon dioxide removal firm, entered into a 12-year long-term contract with Microsoft to capture and store 3.685 million tonnes of biogenic carbon emissions. The deal is based on retrofitting one of the U.S. pulp and paper facilities with carbon capture technology and ranks as one of the largest engineered CDR deals to be executed to date. CO280 will, under this agreement, permanently capture carbon dioxide emitted due to biomass combustion at mill sites and store it in the ground. SLB Capturi, a technology collaborator of CO280, will provide the project's carbon removal solution.

The agreement is part of Microsoft's plan to fulfill its climate target through investment in engineered carbon elimination. For CO280, the partnership helps its plan for developing over 10 projects with five of these being prioritized for delivery before 2030. The firm's strategy focuses on leveraging installed pulp and paper infrastructure to help deploy CDR. US pulp and paper facilities emit approximately 88 million tonnes of biogenic CO2 annually, which acts as a large-scale basis upon which to deploy carbon capture integration. By recycling existing facilities and using standard project designs and financing arrangements, CO280 hopes to be able to replicate projects at different locations at reduced costs and risk.

Another critical element of CO280's strategy is the utilization of sustainable biomass. US paper and pulp companies pride themselves on strict environmental certification policies, such that 97 percent of wood products fed into mills is SFI certified, and 90 percent meets SFI as well as Forest Stewardship Council (FSC) standards. Some mills are supplied by residual biomass only or receive recycled products only. CO280 is committed to best voluntary carbon market sustainability standards in all projects and with the assurance that carbon removal activities will have no adverse impacts on forest life or on management of resources in a responsible way.

CO280 also incorporates energy efficiency in operation by using waste heat and in-house biomass for powering its carbon capture facilities. This reduces environmental footprint of capture and enhances sustainability of the project as a whole. Geographically, more than 75 percent of US paper and pulp mills are within 100 miles of sufficient geological structures for CO2 storage. This is the introduction of low-cost, long-term sequestration of the captured emissions. Further, a growing national infrastructure for CO2 transport and storage adds to the viability and security of scaling such solutions.

Aside from assisting in achieving emissions reduction targets, the partnership with Microsoft is also seen to propel local economies. Mill retrofitting and setting up carbon capture infrastructure will create more capital investments for timber communities, protect existing mill employment, and create new employment opportunities. The deal suggests the rising influence of private sector investment in facilitating industrial decarbonization through end-permanent and verifiable CDR mechanisms.

CO280's broader vision is to scale up a model that aligns economic growth with climate protection. By focusing on an established industrial base with matching infrastructure, the firm can grow solutions more rapidly and ensure that carbon sequestered is retained long term and measured. The partnership with Microsoft affirms this model and establishes CO280 as one of the leading players in the field of engineered carbon removal. It also highlights the increasing role of the business sector in driving climate solutions by investing in viable, high-volume CDR technologies.

As countries and companies move towards achieving net-zero emissions, these types of agreements are bound to become more common. With global demand for high-integrity carbon credits increasing, CO280's strategy of leveraging existing pulp and paper infrastructure offers a strategic path forward for industrial and climate policy agendas.

Source/Credits:
CO280 | News Release | April 11, 2025 | PR Newswire