CO280 and JPMorganChase Sign Carbon Removal Offtake Agreement, Unlocking Investment in the U.S. Pulp and Paper Industry

New class of scalable carbon removal projects aims to enhance North American pulp and paper industry productivity and competitiveness

VANCOUVER, BC, May 20, 2025 /PRNewswire/ -- CO280, a leading developer of large-scale carbon dioxide removal (CDR) projects in the pulp and paper industry, today announced a CDR offtake agreement with JPMorgan Chase from a project that will capture and permanently store biogenic carbon emissions from a pulp and paper mill in the U.S. Gulf Coast. This offtake follows through on a Memorandum of Understanding signed by JPMorgan Chase and CO280 in 2023.

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JPMorgan Chase will purchase 450,000 metric tons of carbon dioxide equivalent (mtCO₂e) over 13 years at a price of under \$200 per ton. This offtake represents one of the lowest price points per ton for high-quality engineered CDR, signaling the potential for these technologies to move down the cost curve towards broader adoption by corporate buyers.

CO280 has pioneered a low-cost approach to scaling up CDR by retrofitting pulp and paper mills to capture biogenic CO₂ from boiler stack emissions. Captured CO₂ is permanently stored deep underground, and the resulting CDR is sold to buyers like JPMorgan Chase to support the mitigation of unabated operational emissions. CO280 is partnering with pulp and paper companies to develop a network of more than ten CDR projects, totaling ten million tons per year of CDR. SLB Capturi will supply the carbon capture technology for this project.

CO280's model of partnering with pulp and paper companies aims to create a new class of carbon removal project that is profitable, bankable and scalable. Working with buyers like JPMorgan Chase, CO280's goal is to develop the world's largest network of carbon removal projects, with the potential to invest billions of dollars in the U.S. pulp and paper industry and help position the U.S. as a leader in global carbon markets.

U.S. pulp and paper mills generate significant volumes of biogenic CO₂, from wood waste. Retrofitting mills to capture and sequester biogenic CO₂ is a multi-billion-dollar market opportunity for the U.S. forest products industry, which is a top ten manufacturing employer in 43 states and contributes 5% of U.S. manufacturing GDP¹. The pulp and paper industry directly employs about 934,704 workers² and supports an additional 6,000,000 indirect jobs³, mostly in rural communities. (source: American Forest and Paper Association, US Bureau of Labor Statistics, and the Economic Policy Institute)

Jonathan Rhone, co-founder and CEO of CO280, said: Together with JPMorgan Chase and other buyers, we're investing to strengthen and revitalize the U.S. pulp and paper industry at a time when the industry is facing growing international competition. By retrofitting mills to deliver permanent, high-quality CDR at the lowest cost, we're transforming the economics of the pulp and paper industry, increasing mill revenue, and EBITDA. Enhancing mill productivity and profitability could also help secure jobs for U.S. forestry workers and sustain the vitality of forest communities for decades to come.

Taylor Wright, Head of Operational Decarbonization at JPMorgan Chase, said: We're thrilled to continue to help speed and scale the growth and development of CDR technologies with this latest offtake. CO280's ability to provide near-term, affordable removals at scale is a key catalyst for making high-quality, engineered CDR available to a wider range of buyers.

Natalie Khtikian, co-founder and Chief Commercial Officer of CO280, said: This landmark agreement with JPMorgan Chase is a testament to the bank's extraordinary leadership. JPMorgan Chase was our earliest supporter–from the beginning they understood our vision to deploy CCS to create value for investors and the people who live and work in mill communities, while delivering the highest quality CDR at the lowest price compared to alternatives.

CO280 projects meet the highest standards. CDR credits will be verified through rigorous third-party assessments, ensuring regulatory and financial additionality, and CO280's measurement, reporting, and verification (MRV) approach aligns with protocols established by leading standard-setting bodies. The biomass sourced by the mills for CO280 CDR projects adheres to the Frontier Biomass Sourcing Principles and Carbon Direct Biomass Sourcing Principles, utilizing residual waste biomass from certified sustainable forests.

About CO280

CO280 Solutions Inc. is a leading developer of large-scale carbon dioxide removal (CDR) projects. In partnership with CDR buyers and pulp and paper companies, we develop, finance, own, and operate carbon removal projects that deliver a new standard of permanent, verifiable, and affordable CDR credits to customers in the carbon market. Learn more at co280.com.

¹ https://www.afandpa.org/statistics-resources/our-economic-impact
² https://www.afandpa.org/statistics-resources/our-economic-impact
³ https://www.epi.org/publication/updated-employment-multipliers-for-the-u-s-economy/?utm_source=chatgpt.com

SOURCE CO280