JPMorganChase and carbon dioxide removal (CDR) project developer CO280 announced a new large-scale, long-term CDR purchase agreement, with JPMorgan agreeing to offtake 450,000 tons of carbon removal over 13 years from a project that will capture and permanently store biogenic carbon emissions from a pulp and paper mill in the U.S. Gulf Coast.

At a price of under $200 per ton, the new agreement marks one of the lowest-ever price points for engineered CDR, highlighting the potential for broader adoption by corporate buyers of the carbon removal technology, according to the companies.

The new agreement follows an initial MOU signed by JPMorgan and CO280 in 2023, forming part of a series of deals by the bank totaling more than $200 million, one of the largest-ever CDR purchase announcements at the time.

Taylor Wright, Head of Operational Decarbonization at JPMorganChase, 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.”

Pulp and paper mills are a major industrial source of industrial greenhouse gas emissions, with U.S. mills emitting 88 million tonnes of biogenic CO2 annually. Vancouver-based CO280 develops biomass carbon removal and storage projects in the pulp and paper industry, including financing, developing, owning and operating large-scale CDR projects in partnership with pulp and paper companies.

CO280 is currently partnering with pulp and paper companies to develop more than 10 CDR projects, aimed at reaching ten million tons of carbon removal annually.

Natalie Khtikian, co-founder and Chief Commercial Officer of CO280, said:

“This landmark agreement with JPMorganChase is a testament to the bank’s extraordinary leadership. JPMorganChase 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 recently announced a partnership with carbon capture technology company Aker Carbon Capture and Microsoft, aimed at helping to scale up the CDR market, with initiatives including exploring the development of carbon capture projects in the U.S. and Canada, joint development of a screening process to evaluate the technical and economic feasibility of carbon capture on pulp and paper mills, standardization of lifecycle assessment and measurement, verification and reporting (MRV) systems for capture projects in pulp and paper, and the creation of a digital tool to compare CO280’s planned projects against Microsoft Criteria for High Quality Carbon Removal.

Jonathan Rhone, co-founder and CEO of CO280, said:

“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.”