CO280 Strikes Historical Deal with Microsoft

Vancouver-based startup CO280 Solutions Inc. (“CO280”) is making strides in carbon capture, focusing on the removal of carbon dioxide emitted by pulp and paper mills across the U.S. The startup recently signed one of the largest carbon removal agreements in history with Microsoft Corp. (“Microsoft”). Under the agreement, Microsoft committed to purchasing 3.7 million tonnes of CO280’s carbon dioxide removal credits over the next 12 years.

According to CO280, pulp and paper mills are a major source of greenhouse gas emissions in the U.S., releasing nearly 88 million tonnes of biogenic carbon dioxide (“CO2”) each year, much of which remains uncaptured. In response, CO280 developed a capture technology that diverts emissions at the base of a mill’s boiler stacks, absorbs them, then stores them in a geological reservoir. Through this system, CO280 believes it can better scale carbon removal and bolster investment in timberland communities.

CEO Jonathan Rhone highlighted the technology’s cost-effectiveness, noting that carbon capture in the pulp and paper industry is expected to be significantly less expensive, averaging $200 USD per tonne. Moreover, CO2 emissions from mills are approximately 300 times more concentrated than the air people typically breath, making the technology highly efficient.  

The project represents a strong opportunity for Microsoft to improve its emission-reduction efforts, emphasizing Microsoft’s commitment to being net zero by 2030. CO280 also views the deal as a significant milestone for growth, positioning the company for future expansion into the Gulf Coast and Alberta.

Author: Molly Podrebarac, 2024/2025 Articling Student-At-Law