Microsoft signs a substantial carbon removal deal driven by a paper mill

Microsoft invests in CO280 for 3.7M tons of carbon credits to offset emissions.

: Microsoft has committed to purchasing 3.7 million metric tons of carbon removal credits from CO280 to address 12 years' worth of emissions starting in 2028. This initiative is part of Microsoft's broader goal to become carbon-negative by 2030, tackling its 17.1 million metric tons of greenhouse gas emissions reported in 2023. The carbon capture project, developed by CO280 alongside SLB Capturi, uses the amine process to capture CO2 at a mill's recovery boiler, effectively tapping into the biogenic carbon dioxide emitted by the pulp and paper industry. CO280 has planned further expansions to enhance carbon capture rates, while mills involved will benefit financially from the carbon credit proceeds.

Microsoft signed a contract with CO280 to buy 3.7 million metric tons of carbon removal credits, part of a plan to offset emissions spanning 12 years from CO280's first carbon capture project set to begin in 2028. This undertaking supports Microsoft's aim to be carbon-negative by 2030, making strides towards reducing its 17.1 million metric tons of greenhouse gases outputted in 2023. CO280, helmed by co-founder Jonathan Rhone, is executing its initial venture in collaboration with SLB Capturi, leveraging amine process technology to capture CO2 emissions at a pulp and paper mill's recovery boiler, traditionally releasing significant biogenic carbon dioxide.

Rhone emphasized that the inclusion of carbon capture in mills was an overlooked synergy, given the pulp and paper sector's annual contribution of 88 million metric tons of biogenic CO2. The operation involves channeling captured CO2 from the mill via a pipeline to a saline aquifer for storage, expected to sequester 40% of biogenic and 30% of total CO2 emissions. This strategic project marks the first among a planned dozen by CO280, anticipating further enhancements in emission capture.

Key to the project's business model, carbon capture units will operate as joint ventures with paper mills, sharing financial gains from carbon credit sales priced at approximately $200 per metric ton. Mills partaking in these ventures are positioned to benefit economically from the initiative, securing a slice of the revenue generated from these credits, further supported by tax incentives available under the Inflation Reduction Act.

CO280's methodology, centered on leveraging the existing industrial infrastructure, offers a scalable approach to mitigating emissions while incentivizing the involved mills through financial returns. This model not only aligns with sustainability goals but also entangles economic and environmental incentives, making it an attractive path for industries such as pulp and paper, with inherent emission challenges.

This agreement marks a continuation of CO280's endeavors in the carbon credit market, having previously engaged with notable entities like Frontier, backed by tech giants such as Stripe, Google, and Meta. Their innovative efforts fortify a growing trend towards integrating carbon capture technologies into traditional industrial processes as a means to combat climate change while securing tangible business benefits.

Sources: Microsoft, CO280, TechCrunch

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