Microsoft has committed to purchasing 3.685 million tonnes of biogenic carbon emissions from a U.S.-based pulp and paper facility over the course of 12 years.
Apr 14, 2025
In a significant step toward addressing climate change, Microsoft has signed a long-term offtake agreement with CO280, a Canada-based CO₂ removal firm, which retrofits existing pulp and paper mills with carbon capture units to capture biogenic CO₂ from boiler stack emissions for permanent geological storage.
Through this partnership, Microsoft will support the capture and permanent geological storage of nearly 3.7 million tonnes of biogenic CO₂ emissions generated by a U.S. paper mill.
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This deal is one of the most substantial CDR agreements to date and is expected to contribute meaningfully to global climate targets. It will also deliver economic benefits by supporting job creation and economic activity in regions home to pulp and paper mills.
The initiative highlights Microsoft’s trust in CO280’s innovative strategy, which involves retrofitting existing mills to trap CO₂ emissions from boiler stacks and store them underground. CO280’s technology partner, SLB Capturi, will provide the carbon capture systems for this project.
By investing in this essential sector, CO280 aims to enhance the long-term viability of the forest products industry. Their collaborative model, supported by long-term purchase agreements, is expected to attract billions in capital, foster sustainable development, and bolster communities that depend on forestry-related jobs. According to CO280, the technology has the ability to utilize excess waste heat and/or waste biomass to power the carbon capture plants, which can greatly improve their energy efficiency.
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Microsoft earlier signed three removal agreements with reforestation firms, including one to remove 1.5 million tons of CO₂ in India.
