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.