Investment bank JPMorgan Chase has signed a carbon dioxide removal (CDR) off-take deal with Canada carbon capture firm CO280 for 450,000 tonnes of carbon dioxide.
CO280 will capture and store some of the biogenic carbon emissions from a pulp and paper mill in the US Gulf Coast region over a 13-year period at a price of under $200 a tonne.
US pulp and paper mills produce a lot of biogenic CO2 from wood waste. Research suggests that capturing and storing this CO2 could be a multi-billion-dollar opportunity for the forest products industry, which makes up 5% of US manufacturing GDP.
The plant is one of more than 10 that CO280 has partnered with to offer ten million tonnes a year of CDR.
SLB Capturi will supply the carbon capture technology for the project. The company’s Just Catch system is a modular design that supports integration into existing industrial sites.
Jonathan Rhone, co-founder and CEO of CO280, said, “By retrofitting mills to deliver permanent CDR at the lowest cost, we’re transforming the economics for the pulp and paper industry, increasing mill revenue, and [earnings].”
Biomass sourced by the mills for CO280 CDR projects adheres to the Frontier biomass sourcing principles and Carbon Direct biomass sourcing principles, utilising residual waste biomass from certified sustainable forests.
CDR credits will be third-party verified.
JPMorgan Chase has a target to reach net-zero greenhouse gas emissions across its financing activities by 2050. To support this, the bank has made interim 2030 emissions intensity reduction targets for nine high-emitting sectors, including oil and gas, electric power, auto manufacturing, aviation, shipping, iron and steel, cement, and aluminium.
Taylor Wright, Head of Operational Decarbonisation 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.”
