Microsoft (NASDAQ:MSFT) and Vancouver-based startup CO280 have announced a game-changing 12-year deal to capture and permanently store 3.685 million metric tons of carbon emissions from a U.S. pulp and paper mill, according to an announcement made by the startup.

This massive carbon removal initiative marks one of the largest agreements of its kind to date, reinforcing Microsoft‘s commitment to becoming carbon-negative by 2030.

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Microsoft Accelerates Carbon Removal To Offset AI-Driven Emissions

The tech giant's carbon footprint has continued to grow, largely fueled by the rise of energy-hungry AI technologies and the rapid expansion of data centers. To stay on track with its sustainability goals, Microsoft has aggressively pursued renewable energy purchases and cutting-edge carbon removal strategies. Its latest collaboration with CO280 highlights a major leap forward in tackling hard-to-abate emissions.

Brian Marrs, senior director of energy and carbon removal at Microsoft, emphasized the strategic importance of the deal in a statement, saying, “The CO280 strategy of adding carbon removal to existing paper mills is an efficient way to quickly scale carbon removal and bolster investment and jobs into timberland communities across the United States.”

The carbon capture technology for this project will be provided by SLB Capturi, a joint venture between SLB and Aker Carbon Capture. The technology will retrofit an existing recovery boiler at the pulp and paper mill, intercepting carbon dioxide that would otherwise be released into the atmosphere. The captured CO2 will be permanently stored underground in a nearby saline aquifer.

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CO280, founded by industry veteran Jonathan Rhone, has quickly become a leader in large-scale carbon dioxide removal, or CDR, projects. The company is currently developing over 10 projects, with five scheduled to deliver high-priority carbon removal by 2030.

Reflecting on the partnership, Rhone said in the startup's official statement, “The agreement with Microsoft is a significant milestone for CO280 and the CDR market. CO280 is committed to delivering the highest quality, permanent carbon dioxide removal while supporting the economic and environmental health of the communities we serve.”

CO280 Leverages Pulp And Paper Infrastructure For Rapid Carbon Capture Expansion

This initiative taps into the pulp and paper industry's existing infrastructure, offering a faster and more cost-effective path to large-scale carbon removal. U.S. pulp and paper mills emit approximately 88 million metric tons of biogenic CO2 every year. CO280's strategy of standardizing project design, financing, and execution enables faster replication across the country, reducing risks and speeding up deployment.

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Sustainability is a major pillar of the CO280 model. The American pulp and paper industry already maintains high certification standards, with 97% of wood going to mills certified by the Sustainable Forestry Initiative and 90% meeting both SFI and Forest Stewardship Council standards. Many mills also rely on residual biomass and recycled content for production, ensuring a strong commitment to environmental stewardship.

The Carbon Removal Project That Sparks Economic Growth In Timberland Communities

The CO2 captured through the Microsoft-CO280 project will help strengthen local economies by creating jobs and attracting investment to timberland communities. Mills participating in the carbon capture program will also benefit from a share of the carbon credit revenues, bolstering their financial health.

As carbon removal technologies move into the spotlight, partnerships like the one between Microsoft and CO280 will set new benchmarks for innovation, impact, and scale. With billions of dollars flowing into sustainable initiatives, and a clear roadmap for replication, CO280 is positioning itself as a driving force behind the next chapter of climate innovation.

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This article Microsoft Bets Big On Carbon Removal With CO280, Inks 12-Year Deal Targeting U.S. Pulp And Paper Mills Emissions originally appeared on Benzinga.com

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