1PointFive in carbon dioxide credits deal with Canadian bank

1PointFive, a carbon capture, utilisation and sequestration (CCUS) company, said November 1 it had sold CO₂ removal (CDR) credits that will be generated from its STRATOS direct air capture (DAC) facility under construction in Texas to Canada’s TD Bank Group.

Subject to STRATOS becoming operational, TD Securities will purchase 27,500 tonnes of DAC CDR credits generated by STRATOS over a period of four years. It represents one of the largest purchases of DAC CDR credits by a financial institution, 1PointFive said.

In September, global retailing giant Amazon struck a deal with 1PointFive to acquire 250,000 tonnes of DAC CDR credits over 10 years from STRATOS. Other purchasers include All Nippon Air, Japan’s largest airline, and the Houston Astros.

STRATOS, which will capture up to 500,000 tonnes/year of CO₂ from the atmosphere, is the first large-scale deployment of DAC technology in the world. It is being developed by 1PointFive, a subsidiary of Occidental, and Canada’s Carbon Engineering (CE), developer of the DAC technology at STRATOS, and is expected to be operational by mid-2025.

In August, Occidental entered into a definitive agreement to acquire CE for a cash consideration of about $1.1bn. That deal is expected to close by the end of this year.

TD Securities will add the DAC CDR credits to its portfolio of voluntary carbon offsets as it builds out its carbon advisory and trading capabilities in the voluntary and compliance markets.

“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,” said Amy West, global head of ESG Solutions at TD Securities.