In a bold move to offset its rising emissions, Microsoft has signed a 12-year agreement with CO280, a Vancouver-based startup, to capture and store carbon emissions from a U.S. pulp and paper mill. The deal will see Microsoft finance the removal of 3.685 million metric tons of carbon dioxide, one of the largest carbon removal commitments to date in the tech industry.
A Strategic Push Toward Carbon Negativity
While Microsoft aims to become carbon negative by 2030, its emissions have continued to climb due to the high energy demands of artificial intelligence and the expansion of data centers. The agreement with CO280 is part of Microsoft’s broader strategy to counterbalance those emissions through scalable, high-impact carbon capture technologies.
Brian Marrs, Microsoft’s senior director of energy and carbon removal, emphasized the importance of integrating carbon removal into existing industries:
“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 in timberland communities across the United States.”
How It Works: Retrofitting with Carbon Capture
The project involves retrofitting a pulp and paper mill with carbon capture technology developed by SLB Capturi, which will extract carbon dioxide from the mill’s boiler emissions. Once captured, the carbon will be permanently stored underground in geological formations, ensuring long-term climate benefits.
Though the exact location and financial details of the deal remain undisclosed, the scale of the agreement positions it as a transformative step in industrial decarbonization.
CO280’s Role in Scaling Carbon Removal
CO280 specializes in large-scale carbon removal infrastructure, with over 10 active projects and plans to complete at least half by 2030. This deal with Microsoft marks a significant milestone in its mission to integrate carbon capture into traditional industrial operations.
Jonathan Rhone, CO280’s co-founder and CEO, hailed the agreement as pivotal:
“The agreement with Microsoft is a significant milestone for CO280 and the carbon dioxide removal market.”
Microsoft’s Growing Carbon Removal Portfolio
Microsoft has rapidly emerged as a global leader in carbon removal investments. In 2023, the company purchased 80% of the world’s high-durability carbon removal credits, totaling 5 million metric tons. It has funded various U.S. and international projects, including
- Ebb Carbon for removing 350,000 metric tons of CO₂ from seawater.
- Occidental Petroleum subsidiary for capturing 500,000 metric tons in Texas.
- Partnerships in Norway and Denmark to remove over 4.3 million metric tons.
Additionally, Microsoft has been working with Carbon Direct to establish science-based standards for verifying marine-based carbon dioxide removal, signaling its commitment to credible and impactful climate solutions.
As pressure mounts on tech companies to align with climate goals, Microsoft’s latest move with CO280 could become a model for future industry collaborations. By targeting high-emission industrial sectors like pulp and paper and combining them with cutting-edge capture technology, Microsoft is not just offsetting emissions—it’s reshaping the path to a more sustainable industrial future.
