A New Green Gold Rush: What Microsoft’s CO280 Deal Means for the Pulp and Paper Industry

In a major move that underscores the growing momentum in the carbon dioxide removal (CDR) market, Microsoft has signed a landmark agreement with CO280 to purchase an impressive 3.69 million metric tons of carbon removal credits. 

The deal yields one of the largest CDR commitments ever made. The staggering amount of removal reflects a growing confidence in the scalability of CO2 removal technologies—especially those focused on industrial applications like pulp and paper. 

According to CO280’s official press release, the agreement will support CO280’s bioindustrial strategy of converting biomass residue into durable carbon storage. The residue will primarily come from the US pulp and paper industry. 

Conversion strategy involves turning paper waste into carbon-rich solids that are then safely stored underground. The process effectively locks away CO2, potentially for thousands of years. 

Microsoft’s purchase commitment is spread over a 10-year period. The first deliveries are expected as early as 2026. 

Let’s unpack what this could mean for the pulp and paper industry’s future. 

Turning Carbon into Cash: The Profit Potential for Pulp & Paper 

This deal—one of the largest ever for nature-based carbon removal—validates the role of biochar and other biomass-derived CDR methods in addressing climate change. But beyond its environmental impact, it opens up massive economic opportunities for those in the pulp and paper industry. 

The financial upside for the pulp and paper industry is substantial. Current voluntary carbon market prices for high-quality removals like biochar range between $100 and $600 per ton, depending on permanence and verification standards. For a single mid-size pulp and paper mill, this translates into significant revenue potential, as such facilities can produce tens of thousands of tons of biochar-worthy waste each year. Even at a conservative estimate of $200 per ton, this could yield tens to hundreds of millions of dollars in new revenue annually. 

Moreover, the transition to biochar production doesn't require a complete overhaul of existing infrastructure. Mills already possess the foundational equipment and processes; they simply need to integrate pyrolysis technology to convert byproducts such as lignin or black liquor into valuable carbon credits. With companies like CO280 managing the complex aspects of certification, validation, and market outreach, pulp and paper producers are well-positioned to tap into this new revenue stream with minimal disruption to their core operations. This offers a rare combination of environmental impact and economic gain, making it an attractive opportunity for mills looking to future-proof their businesses. 

A Domino Effect: Will Other Tech Giants Follow Microsoft? 

Microsoft isn’t alone in its carbon removal ambitions. Other major corporations—such as Amazon, Meta, and Google—are also setting aggressive net-zero and carbon-negative targets. If even a few of these companies follow Microsoft’s lead, the demand for nature-based, verifiable carbon removals will likely surge.  

This growing demand could spark what some might call a carbon dioxide removal gold rush, where pulp and paper companies, already generating significant volumes of biomass waste, would be uniquely equipped to scale up and meet the need rapidly. 

Such a shift could lead to an industry-wide transformation. Rather than being viewed as a contributor to environmental challenges, the pulp and paper sector could redefine itself as a critical partner in the global climate solution ecosystem. This change in perception and role would not only enhance the industry’s reputation but also open new avenues for growth and investment. 

How Can Pulp & Paper Companies Capitalize on This? 

To take full advantage of the opportunity, mills need to move strategically. Here's how: 

1. Assess Feedstock Readiness 
   Start by conducting a carbon potential audit. Which waste streams—bark, sludge, lignin—can be converted into biochar? How much of it is available? 
2. Partner with CDR Specialists
   Rather than go it alone, companies can partner with firms like CO280 or other pyrolysis tech providers to fast-track implementation and certification. 
3. Secure Carbon Credits Now
   The earlier mills enter the CDR market, the better. As demand grows, so does competition—and possibly regulatory scrutiny. Early adopters will benefit from premium pricing and better contract terms. 
4. Market the Green Transition
   Companies can gain a competitive edge by positioning themselves as carbon-negative producers. This could strengthen customer loyalty, attract ESG-focused investors, and qualify for green financing or subsidies. 

ResourceWise: Your CDR Market Intelligence Partner 

Microsoft’s CO280 deal isn’t just good news for climate—it’s a turning point for the pulp and paper sector as well. By aligning economic incentives with carbon removal, this agreement showcases how an industry rooted in natural resource use can evolve into a champion of environmental stewardship and innovation. 

For forward-thinking pulp and paper companies, this isn’t just an opportunity—it’s a call to action. Now is the time to turn pulp into profit—and carbon into a competitive advantage.  

At ResourceWise, we’ve been closely monitoring the carbon dioxide removal market as it has developed. Our market intelligence—both in pulp and paper and biofuels and decarbonization—help our customers understand investment patterns, track technology readiness, and assess the competitive landscape across emerging removal solutions. 

Recently, we hosted a comprehensive webinar on the state of the CDR market. Matthew Stone, ResourceWise’s VP of Business Development and Director of Low Carbon Fuels, unpacked key drivers, challenges, and trends shaping the sector. 

If you missed it live, good news: the webinar is now available on-demand. 

In this exclusive ResourceWise webinar, we explore the fundamentals, challenges, and emerging opportunities shaping this fast-evolving space. From market dynamics to strategic insights, this session will equip you to lead in the changing landscape of CDR. 

You’ll Learn: 

• Core CDR principles and leading technology pathways 

• How CDR differs from traditional carbon offsets 

• Key players, market shares, and top-performing regions 

• What’s driving demand—including AI, cloud, and data-driven sectors 

• Where supply is limited and why that creates an advantage for early movers 

• How to build value and establish first-mover positioning in this emerging market 

View the webinar today to stay up-to-date on this fast-moving market sector.