
The six-year agreement is enabled by the STRATOS DAC facility being built by 1PointFive in Texas. (Source: Shutterstock)
Carbon capture and sequestration company 1PointFive on July 9 said it entered a deal to sell 500,000 metric tons (mt) of direct air capture (DAC) carbon removal credits to tech giant Microsoft.
As part of the six-year agreement, enabled by the STRATOS DAC facility being built by 1PointFive in Texas, captured CO2 will be stored underground and not used to produce oil and gas. The agreement marks the largest single purchase of CO2 removal credits enabled by DAC to date, according to 1PointFive, the CCUS business unit of Occidental Petroleum.
It is also expected to help push Microsoft toward its goal of becoming carbon negative by 2030.
“To achieve the gigatons of removals needed this century, first-of-a-kind projects like STRATOS are essential to move from pilots to scale,” said Brian Marrs, senior director for carbon removal and energy at Microsoft. “DAC plays an important role in Microsoft’s carbon removal portfolio supporting our broader goal of becoming carbon negative by 2030.”
Carbon credits, also called carbon offsets, allow owners to emit a certain amount of CO2 or another greenhouse gas (GHG). Each credit permits one ton of CO2, or other GHG, to be emitted.
STRATOS is scheduled to start up in mid-2025. Once fully operational, the facility is expected to capture up to 500,000 mt of CO2 annually, 1PointFive said.
“A commitment of this magnitude further demonstrates how one of the world’s largest corporations is integrating scalable Direct Air Capture into its net zero strategy,” said Michael Avery, president and general manager of 1PointFive. “Energy demand across the technology industry is increasing and we believe Direct Air Capture is uniquely suited to remove residual emissions and further climate goals.”
Recommended Reading
SM Energy Adds Petroleum Engineer Ashwin Venkatraman to Board
2024-12-04 - SM Energy Co. has appointed Ashwin Venkatraman to its board of directors as an independent director and member of the audit committee.
Baker Hughes Wins Contracts for Woodside’s Louisiana LNG Project
2024-12-30 - Bechtel has ordered gas technology equipment from Baker Hughes for the first phase of Woodside Energy Group’s Louisiana LNG development.
Chevron Names Laura Lane as VP, Chief Corporate Affairs Officer
2025-01-13 - Laura Lane will succeed Al Williams in overseeing Chevron Corp.’s government affairs, communication and social investment activities.
Plains All American Prices First M&A Bond of Year
2025-01-13 - U.S. integrated midstream infrastructure company Plains All American Pipeline on Jan. 13 priced a $1 billion investment-grade bond offering, the year's first to finance an acquisition.
Gigablue Enters CCS Agreement with Investment Firm SkiesFifty
2025-01-14 - Carbon removal company and investment firm SkiesFifty have partnered to sequester 200,000 tons of CO2 over the next four years.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.