seeing green
1PointFive secures new buyer for Texas CO2 removal project
Houston’s Occidental Petroleum Corp., or Oxy, and its subsidiary 1PointFive have secured another carbon removal credit deal for its $1.3 billion direct air capture (DAC) project, Stratos.
California-based Palo Alto Networks has agreed to purchase 10,000 tons of carbon dioxide removal (CDR) credits over five years from the project, according to a news release.
The company joins others like Microsoft, Amazon, AT&T, Airbus, the Houston Astros and the Houston Texans that have agreed to buy CDR credits from 1Point5.
"Collaborating with 1PointFive in this carbon removal credit agreement highlights our proactive approach toward exploring innovative solutions for a greener future,” BJ Jenkins, president of Palo Alto Networks, said in the release.
The Texas-based Stratos project is slated to come online this year near Odessa. It's being developed through a joint venture with investment manager BlackRock and is designed to capture up to 500,000 metric tons of CO2 per year. The U.S Environmental Protection Agency recently approved Class VI permits for the project.
DAC technology pulls CO2 from the air at any location, not just where carbon dioxide is emitted. Under the agreement with Palo Alto Networks and others, the carbon dioxide that underlies the credits will be stored in a below-the-surface saline aquifer and won’t be used to produce oil or gas.
“We look forward to collaborating with Palo Alto Networks and using Direct Air Capture to help advance their sustainability strategy,” Michael Avery, president and general manager of 1PointFive, said in the release. “This agreement continues to build momentum for high-integrity carbon removal while furthering DAC technology to support energy development in the United States.”