Oxy's CCUS subsidiary inks massive carbon removal credit deal
Canada’s TD Securities investment bank has agreed to buy 27,500 metric tons of carbon removal credits from the 1PointFive subsidiary of Houston-based energy company Occidental Petroleum.
The four-year deal involves 1PointFive’s first direct air capture (DAC) plant, called Stratos, which is under construction in the Midland-Odessa area. The Occidental Petroleum subsidiary specializes in carbon capture, utilization, and sequestration (CCUS). Under this agreement, the captured CO2 underlying the carbon credits will be stored through geologic sequestration.
Financial terms of the deal weren’t disclosed.
Stratos will be capable of capturing and removing up to 500,000 metric tons of CO2 from the atmosphere per year, 1PointFive says.
Michael Avery, president and general manager of 1PointFive, says in a November 1 news release that TD Securities’ purchase of carbon removal credits demonstrates how DAC “can become a vital tool in an organization’s sustainability strategy and help further net-zero goals.”
“Carbon removal credits from [DAC] will be measurable, transparent, and durable, with the goal of providing a solution for organizations to address their emissions,” Avery adds.
The 1PointFive deal is part of TD Securities’ broader decarbonization initiative.
“As the need to move from climate commitments to action intensifies, corporations across all sectors are looking for tangible ways to achieve their net-zero goals,” says Amy West, global head of ESG solutions at TD Securities.
In September, 1PointFive announced a 10-year deal with e-commerce giant Amazon to purchase 250,000 metric tons of carbon dioxide removal credits via Stratos.