Banking in Carbon: JPMorgan Chase Invests $90M in Carbon Removal with CO280
JPMorgan Chase, one of the largest banks in the world, has entered a landmark agreement with Vancouver-based carbon removal company CO280. The deal is worth $90 million and involves the purchase of 450,000 metric tons of carbon dioxide removal (CDR) over the next 13 years. This move shows more confidence in carbon removal tech. It also reflects a strong effort by companies to combat climate change in clear, measurable ways.
The deal makes JPMorgan the first major bank to commit to engineered carbon dioxide removal at this scale. Each ton of carbon will cost less than $200, a notable price improvement in a field that has often struggled with high costs. This long-term agreement boosts CO280’s growth. It also speeds up new carbon capture projects in North America.
Turning Pulp and Paper Mills into Carbon Removal Facilities
CO280 is taking a different approach to carbon capture. The company is retrofitting old pulp and paper mills. They will use carbon capture technology instead of building new factories. These mills produce biogenic CO₂, a carbon dioxide from natural sources, like wood and plants.
CO280 aims to capture emissions before they reach the atmosphere. Then, it stores them permanently underground in deep geological formations.
The technology used comes from SLB (formerly Schlumberger) and is known as SLB’s “Capturi” system. It captures up to 95% of CO₂ emissions from flue gas and purifies them for transport to secure storage locations.
CO280 partners with legacy mills. This choice saves time and money by avoiding new infrastructure. It also helps cut emissions right at the source. This model is scalable, cost-efficient, and a strong example of how to bring older industries into the clean energy future.
The method uses the current infrastructure and supply chains of the pulp and paper sector. This sector emits around 88 million tons of biogenic CO2 each year in the U.S.
By retrofitting instead of rebuilding, CO280 cuts down on complexity, cost, and risk. It also speeds up deployment and keeps mills running smoothly. This approach also supports local economies by preserving jobs and using established supply networks.
JPMorgan’s Climate Strategy in Action
JPMorgan has been working on ways to reduce its carbon footprint and support a low-carbon economy. The company has committed to financing $2.5 trillion in sustainable investments by 2030. Out of that, $1 trillion is for green projects. This includes renewable energy, energy efficiency, and carbon capture. This $90 million deal with CO280 fits directly into that framework.
According to Taylor Wright, Head of Operational Sustainability at JPMorgan Chase, the bank is focused on “solutions that can scale and be verified.” She noted:
“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.”
Engineered carbon removal is different from nature-based solutions like tree planting. It is seen as more measurable and permanent. The agreement with CO280 marks a move to better carbon removal credits. These credits can be audited, monitored, and verified for many years.
The 13-year term lets CO280 raise more funds. It can keep growing its pipeline of retrofit projects. As more mills adopt the model, the volume of carbon captured will increase, and costs could go down even further.
A Growing Market for Carbon Removal
JPMorgan’s deal with CO280 is part of a growing trend. According to BloombergNEF, the global carbon management market could exceed $800 billion by 2030. Engineered carbon removal was once viewed as costly and experimental. Now, it is drawing significant investment.
Microsoft, Stripe, Shopify, and Frontier have made similar deals. They aim to support carbon capture startups. Frontier is a carbon removal fund backed by tech companies. Early offtake agreements help startups grow. They lower prices and build the infrastructure for large-scale operations.
- CO280’s offering stands out because it delivers carbon removal for under $200 per ton.
Engineered removals cost more than nature-based offsets, which are often under $50 per ton. However, they are seen as more durable and reliable. They will be key to solving climate issues. This is especially true for sectors like aviation, shipping, and heavy industry. These sectors are tough to decarbonize.
Securing carbon removal for under $200 per ton is a big deal. Early-stage engineered CDR projects usually cost over $500 per ton. This price drop shows that CO280’s technology is now mature.
As seen below, more CDR suppliers expect to have the average cost per metric tonne to go down by 2030. Lower prices make high-quality engineered CDR easier to access and more appealing to many companies.
JPMorgan’s financial support adds credibility and visibility to this model. This helps attract more institutional investment in carbon removal. The deal comes after JPMorgan made several agreements worth over $200 million. This shows the bank’s strong role in backing climate technology on a large scale.
The Role of MRV: Making Carbon Removal Trustworthy
One of the biggest challenges facing the carbon credit market is trust. Critics say many voluntary carbon credits rely on weak assumptions or results that can’t be verified. That’s why CO280’s commitment to strong MRV standards (monitoring, reporting, and verification) is so important.
Every ton of CO₂ taken out through the JPMorgan agreement will be measured with third-party tools and checked by independent audits. This ensures that the carbon is not only captured but also stored in a way that is safe and permanent.
CO₂ will be stored in Class VI wells. These wells follow U.S. federal rules and are made for long-term storage of carbon dioxide.
A Blueprint for Scalable Climate Solutions
CO280 plans to continue expanding and is seeking further investment to bring more facilities online. The JPMorgan deal is a signal to other investors that carbon capture can be both environmentally and financially viable.
Each retrofit project could remove 100,000 metric tons of CO₂ per year. With dozens of mills across North America, the potential impact is significant.
From a climate perspective, biogenic CO₂ removal is particularly valuable. Capturing and storing carbon from renewable sources, like trees, has a net-negative effect.
Thus, CO280 doesn’t just cut emissions. It also removes carbon from the air. This helps balance out emissions from sectors that can’t fully go green.
The partnership between JPMorgan Chase and CO280 represents a promising shift in how major companies approach climate solutions. Their agreement uses real-world infrastructure and proven technology to deliver measurable, permanent results. With strong verification, clear pricing, and local job creation, this project serves as a blueprint for other corporations looking to invest in high-quality carbon removal.
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