- Landmark 12-Year Agreement: Microsoft to purchase 3.685 million tonnes of carbon dioxide removal (CDR) from CO280, one of the largest engineered CDR purchases to date.
- CDR at Scale in Legacy Industry: CO280 will retrofit pulp and paper mills with carbon capture and storage (CCS) technology, tapping into a $88M-tonne/year biogenic CO₂ opportunity.
- Economic Catalyst for Mill Communities: The agreement will drive capital investment, safeguard industry jobs, and boost forest-based economies across the U.S.
Microsoft has signed a milestone offtake agreement with CO280, committing to purchase 3.685 million tonnes of permanent carbon dioxide removal over 12 years. The carbon will be captured from boiler stack emissions at a U.S. pulp and paper mill and permanently sequestered underground—marking one of the largest engineered CDR deals on record.
“The agreement with Microsoft is a significant milestone for CO280 and the CDR market,” said 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.”
Leveraging an Industrial Backbone for Carbon Capture
CO280’s approach centers on integrating CCS into the infrastructure of the U.S. pulp and paper industry, which emits 88 million tonnes of biogenic CO₂ annually. By retrofitting existing mills and utilizing their established biomass supply chains, the company can scale CDR projects quickly and cost-effectively.
SLB Capturi will supply the capture technology for the project. CO280 currently has more than 10 projects in development, with five prioritized to begin delivering CDR by 2030.
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“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,” said Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft. “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.”
Sustainability and Operational Efficiency
The pulp and paper industry’s commitment to sustainable biomass sourcing is central to CO280’s model.
- 97% of wood used in U.S. mills goes to facilities with Sustainable Forestry Initiative (SFI) certification.
- 90% of those mills also hold Forest Stewardship Council (FSC) certifications.
- Many use only residual biomass or recycled content, ensuring sustainability compliance with top voluntary carbon market standards.
Additionally, CO280’s facilities will use waste heat or biomass to power the capture process, maximizing energy efficiency and reducing environmental impact.
With over 75% of pulp and paper mills located within 100 miles of viable geological storage sites, CO280’s projects benefit from proximity to storage and the expansion of CO₂ transport infrastructure.
Economic Impact: Investing in America’s Timberland Communities
The Microsoft deal signals more than climate progress—it’s an economic engine for rural and industrial communities.
CO280’s model not only reduces emissions but fortifies the U.S. forest products sector by attracting billions in capital and creating long-term employment. By modernizing mills and reinforcing sustainability, CO280 is positioning the pulp and paper industry for future competitiveness and resilience.
This agreement reflects a convergence of corporate climate leadership, innovative engineering, and community investment—turning legacy industries into carbon solutions for the future.
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