Microsoft invests in CO280 to remove 3.7 million tons of carbon from paper mill

Microsoft strengthens net-negative goals amid AI-driven emissions. (Photo: iStcok)

U.S. tech giant Microsoft is ramping up its carbon dioxide removal (CDR) efforts through a new partnership with climate tech startup CO280.

The collaboration leverages a unique carbon capture and storage (CCS) technology to reduce emissions from a paper mill located in the U.S. Gulf Coast. The project is expected to yield 3.7 million carbon removal credits—one of the largest transactions in the carbon capture space to date.

Carbon capture units directly linked to mill operations

Paper manufacturing emits carbon through intensive energy use and a process-specific source: the recovery boilers used to recycle chemicals. These boilers also release biogenic CO₂. According to CO280, the paper industry is among the top carbon emitters in U.S. manufacturing, releasing an estimated 88 million tons of biogenic CO₂ annually.

CO280’s technology can be directly integrated into existing paper mill facilities to capture large volumes of industrial carbon emissions. (Image: CO280)

CO280 stated that its key innovation lies in integrating directly with existing plant infrastructure. By attaching carbon capture units to a facility’s boiler stacks, captured CO₂ can be transported via pipeline to a dedicated storage site. The capture process employs amine-based solvents provided through a partnership with SLB Capturi, designed to efficiently remove large volumes of industrial emissions.

CO280 taps paper industry for scalable carbon removal solutions

Founded in 2021, CO280 has over ten CCS projects in development, with five slated for delivery by 2030. The company has focused on the paper industry to scale deployment, citing the sector’s high emissions profile and the favorable geological conditions in the U.S. for carbon storage—factors that support rapid replication.

Under this agreement, Microsoft plans to acquire 3.7 million carbon removal credits over a 12-year period. While the specific paper mill and detailed delivery timelines have not been disclosed, CO280’s website notes that their services are priced below $200 per ton.

According to data platform CDR.fyi, Microsoft has maintained its position as the largest buyer of carbon removal credits for several years, purchasing nearly 5 million tons in 2023—ten times more than second-place Google. This single deal alone represents over half the volume of Microsoft’s total CDR purchases from two years ago.

Although Microsoft aims to achieve net-negative emissions by 2030, growing demand from AI and data center operations has pushed its emissions upward, reinforcing its urgency to invest heavily in CDR solutions.

Source: Carbon Credits, AXIOS, CO280