CO280, a Vancouver-based carbon dioxide removal (CDR) developer, has signed a landmark agreement with Microsoft to permanently remove 3.685 million tonnes of biogenic CO₂ from a U.S. pulp and paper mill over the next 12 years.
The deal ranks among the largest engineered CDR purchases to date.
The project will capture CO₂ from boiler stack emissions and store it underground using technology from CO280’s partner, SLB Capturi. It is part of CO280’s broader strategy to retrofit pulp and paper mills with carbon capture and storage (CCS) systems. The company is developing over 10 projects, with five expected to deliver CDR by 2030.
“This agreement is a milestone for CO280 and the CDR industry,” said CEO Jonathan Rhone. “It supports both climate action and local economic development.”
Brian Marrs, Microsoft’s Senior Director of Energy & Carbon Removal, said the project combines innovation with investment in timberland communities, helping scale affordable carbon removal.
U.S. pulp and paper mills emit around 88 million tonnes of biogenic CO₂ annually, offering major potential for scalable CDR. CO280’s model uses existing mill infrastructure, biomass supply chains, and proximity to geological storage to reduce costs and speed deployment.
All projects will adhere to strict sustainability standards, sourcing biomass from mills certified under SFI and FSC. Many use only residual biomass and recycled content.
Waste heat and biomass from mill operations will power the capture systems, boosting energy efficiency and reducing environmental impact.
The project is expected to deliver economic benefits to mill towns through job creation and infrastructure investment. CO280’s long-term agreements and standardization approach aim to attract billions in private capital and reinforce the forest sector’s future.
“This is more than a carbon project—it’s a path to resilient, sustainable growth,” said Rhone.
