Microsoft just made one of the largest carbon removal purchases in history, and I’ve got the full scoop. The tech giant is doubling down on its climate commitments by locking in a 3.7 million metric ton carbon removal deal with CO280, a company innovating carbon capture using paper mill infrastructure. This deal is more than just big—it’s a strategic step toward Microsoft's pledge to be carbon-negative by 2030.
Microsoft’s Climate Mission Gets a Boost from Carbon Capture
By now, we all know Microsoft isn't just relying on renewable energy to clean up its act. The company reported generating 17.1 million metric tons of greenhouse gases in 2023. To counterbalance emissions it can't completely avoid, Microsoft is aggressively buying carbon removal credits—and this latest deal is one of the boldest yet.
Through this partnership, Microsoft will cover 12 years’ worth of emissions from CO280’s very first carbon capture facility, currently in development along the Gulf Coast and set to launch in 2028.
CO280’s Game-Changing Approach to Carbon Removal
I was intrigued when I learned that CO280’s system piggybacks on a paper mill’s natural process. This approach stood out because the pulp and paper industry already emits about 100 million metric tons of biogenic CO2 each year. Jonathan Rhone, CO280’s CEO and co-founder, explained it to TechCrunch in what I’d call a “why didn’t anyone think of this sooner?” moment.
The facility will tap into a recovery boiler—a critical part of paper mills that recycles chemicals and emits carbon. CO280 uses amine-based carbon capture, a proven technology that effectively traps CO2 before it enters the atmosphere.
How It Works: Trees, Tech, and Deep Storage
Here’s where it gets cool: the trees do the initial work by pulling CO2 from the air through photosynthesis. That carbon ends up in the wood used for paper. Normally, when that wood is processed, the carbon would get released back into the atmosphere. But CO280’s system intercepts that carbon and sends it through a 40-mile pipeline to a saline aquifer, where it’s securely stored underground.
This first phase alone will trap 40% of the mill’s biogenic CO2 and 30% of its total emissions, including fossil fuels. And there’s more to come—a second phase aims to double these numbers.
Joint Ventures That Benefit Paper Mills, Too
Here’s a smart twist: CO280 is building these carbon capture units as joint ventures with the paper mills themselves. That means the mills also get a cut of the carbon credit profits, making this not just environmentally savvy but financially sound.
Each credit is priced around $200 per metric ton. But thanks to the Inflation Reduction Act, buyers like Microsoft can offset some of the cost through tax incentives—making this a more attractive investment all around.
Backed by Big Names and Bigger Visions
CO280’s previous customers include Frontier, a climate initiative backed by Stripe, Google, Shopify, and Meta. So, this isn’t a one-off. It's a part of a growing movement to industrialize carbon removal at scale.
Jonathan Rhone emphasized that this Microsoft project is only the beginning. With 11 more projects in CO280’s pipeline, we’re likely to see even more collaboration between heavy industries and clean tech innovators.
What It Means for Microsoft—and the Planet
To me, this deal underscores how climate action is evolving beyond solar panels and wind turbines. Microsoft isn’t just going green; it's making long-term bets on tech that turns emissions into permanent reductions.
By 2030, Microsoft wants to remove more carbon than it emits. Deals like this one with CO280 show us that achieving that ambitious goal is more than corporate lip service—it’s a calculated mission powered by partnerships, smart tech, and serious capital.
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