In a landmark move for engineered carbon dioxide removal (CDR), Microsoft and CO280 have announced a historic offtake agreement. Microsoft will purchase 3.685 million tonnes of CDR over 12 years from CO280’s project, which captures and permanently stores biogenic emissions from a U.S. pulp and paper mill. This contract stands as the second largest commitment to engineered carbon removal to date according to CDR.fyi.
The price per tonne for the agreement hasn’t been disclosed, nor the name of the particular mill but a company representative shared with media it was in a Gulf Coast state. In a post on social media Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft hinted at the potential to scale the approach, saying “there are about 100 pulp and paper mills in the USA, which emit about ~88Mt per year of biogenic CO2 from combustion of biomass waste.”
Microsoft Backs CO280’s Scalable Strategy
CO280 is taking an innovative path by retrofitting pulp and paper mills to capture carbon from boiler stack emissions. The captured CO2 will be stored underground, with SLB Capturi—a joint venture between SLB and Aker Carbon Capture—providing the capture technology. CO280, already developing over 10 projects, expects five key projects to deliver removals by 2030.
Jonathan Rhone, CEO of CO280 said: “The agreement with Microsoft is a significant milestone for CO280 and the CDR market. 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.”
Potential to Transform the Paper and Pulp Industry
CO280’s model taps into the pulp and paper sector’s existing infrastructure to rapidly scale CDR. U.S. mills emit 88 million tonnes of biogenic CO2 annually, providing an abundant opportunity. Retrofits minimize costs and risks by utilizing current biomass supply chains.
One of the selling points CO280 have put forward is the adherence of the projects to sustainability standards. The company says the biomass it plans to use will be certified by Sustainable Forestry Initiative (SFI) and Forest Stewardship Council (FSC).
Additionally, the carbon capture units can operate using waste heat or biomass, enhancing energy efficiency. 75% of mills in the U.S. are within 100 miles of geological storage sites, simplifying CO2 transport and storage according to the company, showing there is potential to decarbonize a significant portion of paper production.
BECCS Expanding Worldwide with Companies like Elimini and Stockholm Exergi
Beyond the Microsoft agreement with CO280, BECCS is gaining momentum globally. Companies like Elimini are developing modular BECCS systems in the U.S., designed to retrofit biomass plants efficiently.
Meanwhile, Sweden is turning into a hotspot for BECCS. There Stockholm Exergi is advancing one of the first large-scale urban BECCS projects, targeting the capture of 800,000 tonnes of CO2 annually. Nordbex also announced the launch of its first facility last year with five more on the way.
Read more: Stockholm Exergi’s BECCS Project Wins Over $1.8B In Government Support
