Financial institution TD Securities has agreed to purchase 27,500 metric tons of direct air capture (DAC) CO2 removal credits during a four-year period from 1PointFive’s DAC plant being constructed in Ector County, Texas, according to a Nov. 1 news release.
Called Stratos, the plant is designed to potentially capture and remove up to 500,000 metric tons of CO2 from the atmosphere annually and store it in underground geologic formations. The agreement to purchase carbon credits, pending startup of the plant, marks one of the largest planned purchases of such credits by a financial institution, the release said.
“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,” Amy West, global head of ESG Solutions for TD Securities, said in the release.
The firm said it plans to use a portion of the credits to offset its own operational emissions, while adding to its portfolio of voluntary carbon offsets.
The Texas plant will be 1PointFive’s first commercial-scale DAC facility. It is expected to begin commercial operations in 2025.
1PointFive is a subsidiary of Occidental.
Recommended Reading
Belcher: Our Leaders Should Embrace, Not Vilify, Certified Natural Gas
2024-03-18 - Recognition gained through gas certification verified by third-party auditors has led natural gas producers and midstream companies to voluntarily comply and often exceed compliance with regulatory requirements, including the EPA methane rule.
Hirs: LNG Plan is a Global Fail
2024-03-13 - Only by expanding U.S. LNG output can we provide the certainty that customers require to build new gas power plants, says Ed Hirs.
Pitts: Producers Ponder Ramifications of Biden’s LNG Strategy
2024-03-13 - While existing offtake agreements have been spared by the Biden administration's LNG permitting pause, the ramifications fall on supplying the Asian market post-2030, many analysts argue.
Watson: Implications of LNG Pause
2024-03-07 - Critical questions remain for LNG on the heels of the Biden administration's pause on LNG export permits to non-Free Trade Agreement countries.
Belcher: Election Year LNG ‘Pause’ Will Have Huge Negative Impacts
2024-03-01 - The Biden administration’s decision to pause permitting of LNG projects has damaged the U.S.’ reputation in ways impossible to calculate.