1PointFive, the carbon capture, utilisation, and sequestration (CCUS) subsidiary of energy giant Occidental, has announced a new agreement with cybersecurity firm Palo Alto Networks to purchase 10,000 tonnes of carbon dioxide removal (CDR) credits over five years. The credits will be generated using direct air capture (DAC) technology from 1PointFive’s STRATOS facility, which is scheduled to become operational this year in Texas. The captured CO2 will be permanently stored through saline sequestration, highlighting the increasing adoption of robust carbon removal solutions.
Occidental has made significant investments in direct air capture, notably through its $1.1 billion acquisition of DAC technology company Carbon Engineering in 2023 and the acquisition of DAC startup Holocene this year. Through its subsidiary 1PointFive, Occidental is developing a series of carbon removal and sequestration projects in the United States, including STRATOS in Texas, which is projected to be the largest DAC facility globally, with a capacity to capture 500,000 tonnes of CO2 annually once fully operational. Earlier this year, the company announced it received permits from the Environmental Protection Agency (EPA) to sequester CO2 captured from STRATOS in deep underground wells.
Michael Avery, President and General Manager of 1PointFive, stated, “This agreement continues to build momentum for high-integrity carbon removal while furthering DAC technology to support energy development in the United States.”
The new agreement will aid Palo Alto Networks’ climate strategy, which aims to achieve net zero by 2040 through a 90% reduction in emissions across Scopes 1, 2, and 3, and to offset any remaining emissions through carbon removal investments.
BJ Jenkins, President of Palo Alto Networks, commented, “Collaborating with 1PointFive in this carbon removal credit agreement highlights our proactive approach toward exploring innovative solutions for a greener future.”
