Microsoft’s Groundbreaking Carbon Removal Partnership with CO280
In a major step toward its sustainability goals, Microsoft has signed a 12-year agreement to purchase 3.7 million metric tons of carbon removal credits from CO280, an innovative project developer leveraging pulp and paper mill infrastructure for carbon capture.
The Deal Breakdown
- Volume: 3.7M metric tons over 12 years
- Project Start: Expected 2028 at Gulf Coast paper mill
- Technology: Amine-based carbon capture attached to mill recovery boilers
- Storage: Captured CO2 transported via pipeline to saline aquifer
Why This Matters for Microsoft
This deal accelerates Microsoft’s ambitious carbon-negative by 2030 target. Despite generating 17.1M metric tons of greenhouse gases in 2023, the tech giant is aggressively pursuing:
- Renewable energy investments
- Carbon removal partnerships
- Innovative offset solutions
The CO280 Advantage
CO280’s unique approach taps into the pulp and paper industry’s existing infrastructure:
- Biogenic Carbon Source: Paper mills release ~100M metric tons annually from wood processing
- Efficiency Boost: First phase captures 40% of biogenic CO2 (30% total emissions)
- Economic Model: Revenue-sharing with mills makes projects financially viable
“The trees do all the heavy lifting by capturing CO2 through photosynthesis,” explains CO280 CEO Jonathan Rhone, a former power plant sales executive who recognized this untapped opportunity.
Technical Implementation
CO280 partners with SLB Capturi (SLB-Aker Carbon Capture JV) to deploy:
- Amine Process Technology: Proven industrial CO2 capture method
- Recovery Boiler Integration: Captures emissions from chemical recycling process
- Scalable Design: Future phases could double capture capacity
Market Context
- Credit Pricing: ~$200/metric ton (with Inflation Reduction Act tax benefits)
- Previous Buyers: CO280 credits purchased by Frontier (Stripe, Google, Meta coalition)
- Industry Potential: First of 12 planned projects in CO280’s pipeline
This partnership demonstrates how industrial symbiosis can drive meaningful climate action while creating new revenue streams for traditional industries.
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