Microsoft Backs Carbon Removal Project with Paper Mill Partnership
Microsoft is making a bold move towards its carbon-negative goal by investing in a project that captures carbon emissions from a pulp and paper mill. The tech giant has agreed to purchase 3.7 million metric tons of carbon removal credits from CO280, a project developer specializing in this innovative approach.
This partnership focuses on capturing emissions from CO280's inaugural carbon capture project at a mill located on the Gulf Coast. The project, slated to begin in 2028, aims to address emissions over a 12-year period. This move aligns with Microsoft's ambitious goal of becoming a carbon-negative company by 2030 – meaning it will remove more carbon than it produces.
While Microsoft boasts considerable resources, achieving this ambitious goal is no easy feat. In 2023 alone, the company generated 17.1 million metric tons of greenhouse gases. To mitigate its environmental impact, Microsoft has been actively investing in renewable energy and carbon removal initiatives to offset unavoidable emissions.
A "No-Brainer" Solution for the Paper Industry
According to CO280's co-founder and CEO, Jonathan Rhone, this Microsoft project is just the first of many in development. Rhone, who previously worked selling power plants to the pulp and paper industry, realized the potential of integrating carbon capture into the existing process. He describes it as a "no-brainer" solution that had been overlooked.
The pulp and paper industry is a significant source of emissions, releasing approximately 88 million metric tons of biogenic carbon dioxide each year. CO280's approach leverages the natural carbon capture abilities of trees. By capturing CO2 from the paper mill's recovery boiler, which recycles chemicals for reuse and releases carbon locked in the wood, the process effectively removes carbon from the atmosphere through photosynthesis.
The captured carbon dioxide will then be transported via a 40-mile pipeline to a saline aquifer for storage. This initial phase aims to capture roughly 40% of the mill's biogenic carbon dioxide emissions and 30% of its total CO2 emissions, including those from fossil fuels used for power. CO280 plans to implement a second phase to double these figures.
Incentivizing Sustainable Practices
Rhone emphasizes that the carbon capture units will be developed as joint ventures with the paper mills. In return, the mills will receive a portion of the carbon credit proceeds, providing a financial incentive to adopt more sustainable practices. CO280 sells its carbon credits for around $200 per metric ton, with buyers potentially benefiting from tax credits under the Inflation Reduction Act, further reducing costs.
CO280 has previously collaborated with Frontier, an advanced market commitment initiative backed by prominent companies like Stripe, Google, Shopify, and Meta, demonstrating the growing demand for carbon removal solutions.
Source: TechCrunch