Microsoft Signs Deal to Remove 3.7 Million Tons of Carbon From US Pulp and Paper Mill

Microsoft announced that it and carbon dioxide removal (CDR) project developer CO280 have signed one of the largest engineered CDR purchase deals to date, ESG Today reported (4-14-25).

Microsoft will offtake nearly 3.7 million tons of carbon removal over 12 years from a project that will capture and permanently store biogenic carbon emissions from a US pulp and paper mill on the Gulf Coast.

Vancouver-based CO280 develops biomass carbon removal and storage projects for the pulp and paper industry, including financing, development, ownership, and operation of large-scale CDR initiatives in partnership with pulp and paper companies. The company is currently advancing more than 10 projects, with five high-priority sites expected to be operational by 2030.

This new agreement builds on a collaboration launched last year between Microsoft, CO280, and carbon capture technology firm Aker Carbon Capture. The partnership aims to develop carbon capture projects across the US and Canada—including those in CO280’s pipeline—while also creating a streamlined process to evaluate the technical and economic feasibility of carbon capture at pulp and paper mills. The collaboration also seeks to standardize lifecycle assessments and measurement, verification, and reporting (MRV) systems for these projects.