JPMorgan Agrees to Major Carbon Removal Contract at a Low Price of Less than $200 per Ton

JPMorgan Chase, CO280, and Aker Carbon Capture Partner with Microsoft to Enhance Mill Productivity and Combat Climate Change

In a significant move towards combating climate change, JPMorgan Chase has entered into a carbon dioxide removal (CDR) purchase agreement with CO280. This agreement, which also includes partnerships with Aker Carbon Capture and Microsoft, promises to enhance the productivity and profitability of mills, potentially securing jobs for U.S. forestry workers and sustaining the vitality of forest communities for decades.

Under the terms of the agreement, Microsoft has agreed to a large-scale, long-term offtake agreement with CO280 to remove 450,000 tons of carbon dioxide over 13 years from a paper mill in the U.S. Gulf Coast. This marks one of the lowest-ever price points for engineered CDR, with the price of carbon removal under this agreement being under $200 per ton.

CO280, a company that develops biomass carbon removal and storage projects in the pulp and paper industry, is currently partnering with pulp and paper companies to develop over 10 CDR projects, aiming for 10 million tons of carbon removal annually. The company finances, develops, owns, and operates large-scale CDR projects in partnership with these companies.

The partnership with Aker Carbon Capture and Microsoft includes initiatives such as exploring the development of carbon capture projects in the U.S. and Canada. Moreover, the partnership involves joint development of a screening process to evaluate the technical and economic feasibility of carbon capture on pulp and paper mills.

Taylor Wright, Head of Operational Decarbonization at JPMorganChase, stated that the new agreement will help speed and scale the growth and development of CDR technologies. Natalie Khtikian, co-founder and Chief Commercial Officer of CO280, said that the bank's support and vision have been instrumental in the development of their CDR projects. Jonathan Rhone, co-founder and CEO of CO280, stated that by retrofitting mills to deliver permanent, high-quality CDR at the lowest cost, they are transforming the economics of the pulp and paper industry.

Standardization of lifecycle assessment and measurement, verification, and reporting (MRV) systems for capture projects in pulp and paper is part of the partnership. A digital tool to compare CO280's planned projects against Microsoft Criteria for High Quality Carbon Removal is being created as part of the partnership.

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. This partnership represents a significant step towards reducing these emissions and contributing to a more sustainable future.

This agreement follows an initial MOU signed by JPMorgan and CO280 in 2023. The total value of CDR purchase announcements by JPMorgan now exceeds $200 million.

In conclusion, the partnership between JPMorgan Chase, CO280, Aker Carbon Capture, and Microsoft aims to scale up the CDR market and provide near-term, affordable removals at scale. This agreement not only benefits the parties involved but also contributes to the global effort to combat climate change and secure the future of forest communities.