seeing green

AT&T makes deal with Oxy for carbon credits

Here's 1PoinFive's newest customer on its Texas CCUS project. Photo via 1pointfive.com

Telecommunications giant AT&T has agreed to purchase carbon removal credits from 1PointFive, the carbon capture, utilization, and sequestration (CCUS) subsidiary of Houston-based Occidental Petroleum.

Financial details weren’t disclosed.

The carbon credits will be tied to STRATOS, 1PointFive’s first large-scale direct air capture (DAC) facility. The billion-dollar project is being built near Odessa.

“AT&T’s carbon removal credit purchase is another proof point of the vital role that [DAC] can play in providing a high-integrity and durable solution to help organizations address their emissions,” Michael Avery, president and general manager of 1PointFive, says in a news release.

The AT&T deal comes just one month after 1PointFive announced a similar agreement with Milwaukee-based Rockwell Automation, which specializes in industrial automation and digital transformation.

In November, Occidental announced that New York City-based investment manager BlackRock was chipping in $550 million as part of a joint venture to build STRATOS. The project, set to be completed in 2025, is designed to capture up to 500,000 metric tons of carbon emissions once it’s fully online.

Under 1PointFive’s deal with Dallas-based AT&T, CO2 underpinning the removal credits will be sucked out of the air and stored in underground salt-water formations.

In conjunction with the DAC deal, 1PointFive has joined AT&T’s Connected Climate Initiative, an effort aimed at reducing greenhouse gas emissions by one gigaton by 2035.

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A View From HETI

Fervo's Cape Station geothermal project is ahead of schedule. Photo courtesy Fervo Energy

Fervo Energy’s flagship project in Utah just generated its first geothermal power.

The electricity is now flowing to the power grid from one of Cape Station’s three generation units, Houston-based Fervo said in a news release. This represents an early but important milestone for the project, as the unit isn’t scheduled to deliver contracted power until Oct. 1.

The achievement, coming four months after Fervo’s roughly $2.2 billion IPO, demonstrates the viability of enhanced geothermal systems (EGS).

“This is a gamechanger for the geothermal industry. It establishes EGS as the defining new power generation technology of our time, and we believe it shows that the commercial and technical maturity of EGS is ready to meet the urgent need for reliable, clean power,” Tim Latimer, co-founder and CEO of Fervo, said in the release.

The plant’s two other units are scheduled to launch commercial operations on Jan. 1.

The three units make up the project’s 99-megawatt first phase. The next phase, which will add 400 megawatts of capacity, is under construction. The second phase is set to go online in 2028.

Altogether, Cape Station will provide more than 4 gigawatts of capacity, with 900 megawatts already spoken for. The 900 megawatts of contracted electricity would be enough to power nearly 1 million U.S. homes per year.

“Cape Station works because we treated the subsurface like an engineering challenge,” Jack Norbeck, co-founder and chief technology officer of Fervo, added in the release. “Years of drilling, completion design, subsurface modeling, and flow testing led to this moment, and this is the validation that matters most.”

Enhanced geothermal continuously draws on heat that’s deep underground, producing electricity around the clock regardless of weather or time of day. That makes it one of the only carbon-free resources capable of constant power delivery, which is critical for data centers and AI infrastructure.

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