carbon capture client

Oxy's cleantech arm scores Amazon DAC investment

Amazon has agreed to buy 250,000 metric tons of carbon removal credits from 1PointFive’s first DAC plant. Photo via 1pointfive.com

Houston-based cleantech company 1PointFive is among the recipients of e-commerce giant Amazon’s first investments in carbon-fighting direct air capture (DAC).

Amazon has agreed to buy 250,000 metric tons of carbon removal credits from Stratos, 1PointFive’s first DAC plant, over a 10-year span. That commitment is equivalent to the amount of carbon stored naturally across more than 290,000 acres of U.S. forecasts, says Amazon.

Financial terms of the deal weren’t disclosed.

1PointFive is a carbon capture, utilization, and sequestration (CCUS) subsidiary of Houston-based energy company Occidental Petroleum.

The carbon captured for Amazon will be stored deep underground in saline aquifers — large geological rock formations that are saturated in saltwater.

As Amazon explains, DAC technology filters CO2 from the atmosphere and stores it in underground geological formations. Aside from being stored, removed carbon can be used to make building materials like bricks, cement, and concrete.

1PointFive is constructing its first DAC plant in Ector County, which is anchored by Odessa. The facility is expected to be the world’s largest DAC plant, capturing up to 500,000 tons of CO2 per year. Amazon Web Services (AWS) will provide real-time performance data for the plant.

“Amazon’s purchase and long-term contract represent a significant commitment to direct air capture as a vital carbon removal solution,” Michael Avery, president and general manager of 1PointFive, says in a news release. “We are excited to collaborate with Amazon to help them achieve their sustainability goals.”

1PointFive broke ground on the Stratos plant in April. Its project partners include British Columbia-based Carbon Engineering and Australia-based Worley. The plant is expected to be fully operational by mid-2025.

1PointFive envisions establishing more than 100 DAC facilities around the world by 2035.

The Amazon deal isn’t the only major deal for 1Point5 this summer.

In August, the U.S. Department of Energy (DOE) announced a $600 million grant for a 1PointFive-operated DAC hub that will be built in South Texas. The more than 100,000-acre hub, comprising 30 individual DAC projects, eventually may remove and store up to 30 million metric tons of CO2 per year.

Also in August, Japan’s All Nippon Airways (ANA) said it reached an agreement with 1PointFive to buy 10,000 metric tons of carbon removal credits per year over a three-year period starting in 2025. The credits will be generated by 1PointFive’s Stratos plant.

In the U.S., DAC has gotten a huge boost from the federal government. The Inflation Reduction Act, passed in 2022, includes tax credits for capturing and storing carbon via DAC.

The International Energy Agency says 27 DAC plants have been commissioned around the world, with at least 130 more in the development stage. One forecast predicts the value of the global market for DAC systems will climb past $2.3 billion by 2030.

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A View From HETI

Four energy companies are putting their money where their mouths are following Hurricane Beryl. Photo by Brandon Bell/Getty Images

Four major energy companies in the Houston area have chipped in more than $400,000 to support relief efforts for Hurricane Beryl in Southeast Texas. Nationwide, it’s estimated that the storm caused at least $28 billion in damage and economic losses.

Here’s a breakdown of contributions announced by the four energy companies.

Baker Hughes Foundation

The Baker Hughes Foundation, the philanthropic arm of Houston-based energy technology company Baker Hughes, gave a $75,000 grant to the Houston chapter of the American Red Cross for Hurricane Beryl relief efforts.

“We understand recovery and rebuilding can take weeks or months, and we support the American Red Cross’ mission of providing people with clean water, safe shelter, and food when they need them most,” says Lorenzo Simonelli, chairman and CEO of Baker Hughes.

CenterPoint Energy

Houston-based CenterPoint Energy, which at one point had more than 2 million customers without power due to Hurricane Beryl, says its foundation has donated to several disaster relief organizations in the region. These include the American Red Cross of Coastal Bend, Catholic Charities of the Archdiocese of Galveston-Houston, Combined Arms, and the 4B Disaster Response Network in Brazoria and Galveston counties.

As of July 11, the company had also provided:

  • More than 30,000 bottles of water to cooling centers and distribution centers in the Houston area.
  • Meals to local first responders.
  • Mobile power generation at cooling centers, hospitals, senior living centers, and water treatment plants.

CenterPoint didn’t assign a dollar value to its contributions.

“Our first priority is getting the lights back on. At the same time, we have seen firsthand the devastation our neighbors are facing, and our commitment to the community goes beyond restoration efforts,” says Lynnae Wilson, senior vice president of CenterPoint’s electric business.

ConocoPhillips

Houston-based ConocoPhillips contributed $200,000 to relief efforts for Hurricane Beryl. The company also is matching donations from U.S. employees of ConocoPhillips.

The money is being split among the Houston Food Bank, Salvation Army and American Red Cross.

“Houston is our hometown, and many of our employees and neighbors have been impacted by Hurricane Beryl,” says Ryan Lance, chairman and CEO of ConocoPhillip.

Entergy Texas

Entergy Texas, based in The Woodlands, donated $125,000 to the American Red Cross for Hurricane Beryl relief efforts. The money will go toward emergency needs such as food, shelter, and medical care.

“Our commitment to helping communities in distress remains unwavering, and we are hopeful that our contribution will offer relief and comfort to those facing hardships in the storm’s aftermath,” says Eliecer Viamontes, president and CEO of Entergy Texas.

Entergy Texas supplies electricity to about 512,000 customers in 27 counties. It’s a subsidiary of New Orleans-based Entergy Corp.

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