Microsoft signs deal to remove 3.7 million tons of CO2 from U.S. pulp and paper mill

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🗞️ Driving the news: Microsoft has signed a landmark agreement with CO₂ removal developer CO280 to purchase 3.7 million tonnes of carbon removal over 12 years from a U.S. Gulf Coast pulp and paper mill
• The deal, one of the largest engineered carbon dioxide removal (CDR) purchases to date, will capture and permanently store biogenic CO₂ — emissions originating from organic materials — through a bioenergy carbon capture and storage (BECCS) system

🔭 The context: U.S. pulp and paper mills emit an estimated 88 million tonnes of biogenic CO₂ annually, making them a substantial but under-addressed source of industrial emissions
• CO280 is developing over 10 BECCS projects in the sector, leveraging waste biomass and existing infrastructure to scale cost-effective carbon removal
• The agreement follows Microsoft’s 2024 collaboration with CO280 and Aker Carbon Capture (now part of SLB Capturi) to streamline technical screening and MRV protocols for BECCS deployment across North America.

🌍 Why it matters for the planet: This deal signals growing momentum for engineered carbon removal as a necessary complement to emissions reduction
• By capturing biogenic CO₂ at existing mills and using waste heat and biomass as energy sources, CO280’s projects offer a low-leakage, scalable model for permanent carbon removal
• The inclusion of SFI-certified wood and access to nearby geological storage sites further enhances climate integrity and environmental co-benefits

⏭️ What's next: The Gulf Coast project will serve as a blueprint for additional facilities, with five priority sites expected online by 2030
• Microsoft continues to shift toward high-durability CDR solutions to meet its carbon negative by 2030 goal
• This deal may set a precedent for further corporate investment in engineered removals, especially in hard-to-abate sectors
• Regulatory clarity on MRV standards and tax incentives could further accelerate adoption

💬 One quote: “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.” – Brian Marrs, Senior Director, Microsoft

📈 One stat: 3.7 million tonnes of CO₂ will be captured and permanently stored under this agreement — equivalent to removing approximately 800,000 passenger cars from the road for one year

See on illuminem's Data Hub™ the sustainability performance of Microsoft and peers Alphabet and Amazon

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