For the second time in as many months, a B.C. firm specializing in carbon capture has inked a deal with a major American corporation to help offset emissions.
Vancouver-based CO280 Solutions Inc. announced Tuesday it’s signed its latest offtake agreement with JPMorgan Chase & Co. (NYSE:JPM).
The banking giant is set to purchase 450,000 tonnes of carbon dioxide removal (CDR) over 13 years from a pulp and paper mill located in the U.S. Gulf Coast.
JPMorganChase will start buying the CDR once the capture plant has been built and achieves commercial operations in 2029, CO280 said in an email to BIV.
The bank will purchase the CDR for less than US$200 per tonne, according to the release, which could be worth up to US$90 million by the end of the contract.
Founded in 2021, CO280 is a project development company that partners with and retrofits mills for carbon collection. The company collects biogenic carbon released from the burning of waste products created in the paper-making process, which is then sent via pipeline to a site where it’s pumped into storage, CO280 CEO Jonathan Rhone told BIV in April.
That same month, the company announced an offtake agreement with Microsoft Corp. (Nasdaq:MSFT) for the purchase of 3.7 million tonnes of CDR over 12 years. Rhone said the Microsoft project is expected to be up and running by the end of 2028, and that it would be the first of its kind.
He also said the company had a dozen projects in development, and was securing about US$5 billion of project capital to build them.
Mills in the U.S. alone emit 88 million tonnes of biogenic carbon dioxide per year, according to CO280.
The total value of the contract with Microsoft was not disclosed. However, in December of 2024, CO280 signed another offtake agreement worth US$48 million with Frontier Climate, a market commitment organization, in exchange for 224,500 tonnes of CDR by 2023.
