CO280, a developer of large-scale carbon dioxide removal (CDR) projects within the pulp and paper sector, has signed an offtake agreement with JPMorgan Chase to capture and permanently store biogenic CO₂ emissions from a U.S. Gulf Coast pulp and paper mill.
Under the agreement, JPMorgan Chase will purchase 450,000 metric tonnes of carbon dioxide equivalent (mtCO₂e) over 13 years, at a price below $200 per tonne.
The deal builds on a memorandum of understanding signed between the two parties in 2023. CO280 retrofits pulp and paper mills to capture CO₂ emitted from boiler stacks, permanently storing it underground. The resulting carbon credits are then sold to corporate buyers aiming to offset residual emissions.
This project will utilise carbon capture technology from SLB’s Capturi division and is part of CO280’s broader strategy to establish a network of more than ten such projects, with a combined removal capacity of 10 million tonnes of CO₂ annually.
“By retrofitting mills to deliver permanent, high-quality CDR at the lowest cost, we’re transforming the economics of the pulp and paper industry,” said Jonathan Rhone, co-founder and CEO of CO280. “This model boosts mill revenue and productivity, while helping to preserve jobs and revitalise rural forest communities across the U.S.”
The U.S. pulp and paper industry, a top-10 manufacturing employer in 43 states, generates significant volumes of biogenic CO₂ from wood waste. Retrofitting existing infrastructure presents a multibillion-dollar opportunity, with the sector directly employing over 930,000 workers and supporting an additional six million jobs.
JPMorgan Chase’s Taylor Wright, Head of Operational Decarbonisation, called the agreement a catalyst for scaling up carbon removal. “CO280’s ability to offer near-term, affordable removals at scale is critical for expanding access to high-quality engineered CDR.” Natalie Khtikian, co-founder and Chief Commercial Officer of CO280, added: “This agreement is a testament to JPMorgan Chase’s leadership and early support. It underscores our shared vision of using carbon capture to create long-term value for investors, industry, and communities alike.”
