1PointFive agrees to sell 500,000 metric tons of CO2 removal credits to Microsoft

Published on July 11, 2024 by Liz Carey

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On Tuesday, carbon capture and sequestration company 1PointFive announced it had entered into an agreement with Microsoft to sell 500,000 metric tons of carbon dioxide removal credits (CDR).

The six year agreement is the largest single purchase of CDR credits enabled by direct air capture to date, and will support Microsoft’s carbon removal strategy, officials said. The purchase also highlights the technology’s position as a solution to help organizations achieve net-zero emissions.

“We are excited about this landmark agreement for Direct Air Capture, which is a result of Microsoft’s leadership in carbon removal and focus on building a more sustainable future,” Michael Avery, 1PointFive’s president and general manager, said. “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.”

Under the terms of the agreement, the captured carbon dioxide (CO2) will be securely stored through subsurface saline sequestration and will not be used to produce oil and gas. The STRATOS, 1PointFive’s first industrial-scale DAC facility, will handle the CDR credits. The facility is currently under construction in Texas.

“We’re very pleased to announce this deal with 1PointFive, a pioneer in the Direct Air Capture space, which is building the largest DAC project worldwide. 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,” Brian Marrs, Senior Director for Carbon Removal and Energy at Microsoft, said.