Occidental to sell 500,000 tonnes of direct air capture carbon removal credits to Microsoft

Occidental’s subsidiary, 1PointFive, announced an agreement with Microsoft to sell 500,000 metric tonnes of carbon dioxide removal (CDR) credits over six years, representing the largest single purchase of CDR credits enabled by direct air capture (DAC) to date.

The CDR credits for Microsoft will be facilitated by STRATOS, 1PointFive’s first industrial-scale DAC facility currently under construction in Texas. Under the agreement, the captured carbon dioxide (CO2) will be securely stored through subsurface saline sequestration and will not be utilised for oil and gas production. This method provides a transparent and durable approach to addressing emissions on a large scale, particularly from hard-to-abate industries.

“A commitment of this magnitude further demonstrates how one of the world’s largest corporations is integrating scalable direct air capture into its net-zero strategy. Energy demand across the technology industry is increasing, and we believe direct air capture is uniquely suited to remove residual emissions and further climate goals,” stated Michael Avery, President and General Manager of 1PointFive.

This agreement marks a significant step forward in the fight against climate change, highlighting the critical role of innovative technologies like direct air capture in reducing atmospheric CO2 levels. As companies like Microsoft take decisive action towards sustainability, partnerships with firms like 1PointFive will be instrumental in realising a carbon-negative future.

Brian Marrs, Senior Director for Carbon Removal and Energy at Microsoft, added, “To achieve the gigatons of removals needed this century, first-of-a-kind projects like STRATOS are essential to move from pilots to scale. DAC plays an important role in Microsoft’s carbon removal portfolio, supporting our broader goal of becoming carbon negative by 2030.”