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

Alléo Energy is moving its headquarters to The Ion District. Photo courtesy of The Ion

An Alabama-based clean tech company is moving its headquarters to Houston.

Alléo Energy announced that it will move its headquarters from Bay Minette, Alabama, to Houston's Ion District. The company develops carbon-negative fuels and renewable commodities through its conversion technology that turns wood waste and cellulosic feedstocks into high-energy, high-yield syngas.

The news comes after Alléo announced the appointment of Benjamin Cowart as its new CEO. Cowart will succeed Alléo founder Simeon Chow, who will serve as president.

“Ben doesn’t need to be sold on carbon-negative fuels; he’s already building in this exact space, and he’s thrived through some of the hardest conditions the industry has faced,” Chow said in a news release. “He knows how to scale and he knows the capital markets that finance them; he turns the hurdles that stall other companies into momentum. Bringing a leader of his caliber in as CEO is a defining, energizing moment.”

Cowart previously founded Houston-based renewables Vertex Energy Inc. The company went public on the Nasdaq exchange in 2009 through a reverse merger. He served as chairman and CEO of the company, which was later taken private by a consortium led by BlackRock.

Cowart also founded EVH Corp., a venture platform focused on building in hydrogen, methanol, sustainable aviation fuel (SAF), and low-carbon marine fuels.

“I’ve spent my career turning advanced process technology into high-performing enterprises that deliver both economic and environmental returns in an industry defined by headwinds,” Cowart added in the release. “The winners in energy transition aren’t the ones with the best headline; they’re the ones that keep their economics intact when subsidies move, feedstock prices swing, and capital gets expensive. Alléo is well-built for that. I’ve rarely seen a technology company this well positioned for what the market is demanding. The science is proven; now it’s about disciplined execution, financing, and building more plants. This is the work I love most.”

Alléo plans to scale its proprietary conversion technology. The company commissioned the first phase of its Alabama facility in 2023, which produced renewable diesel made entirely from wood waste, which could be converted to SAF.

The company says that it has $50 million invested in initial research and development, and that additional facilities are in the planning stages.

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