1PointFive, the carbon capture, utilization and sequestration (CCUS)-focused subsidiary of energy giant Occidental (Oxy), announced a new agreement with cybersecurity firm Palo Alto Networks for the purchase of 10,000 tons 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 set to come online this year in Texas. Captured CO2 will be permanently stored through saline sequestration, underscoring the growing adoption of durable carbon removal solutions.
Oxy has invested significantly in direct air capture, including through the $1.1 billion acquisition in 2023 of DAC technology company Carbon Engineering, and the acquisition this year of DAC startup Holocene. Oxy, through its DAC subsidiary 1PointFive is currently developing a series of carbon removal and sequestration projects in the U.S., including STRATOS in Texas, which it expects to be the largest DAC facility in the world to date, designed to capture 500,000 tonnes of CO2 per year when fully operational. Earlier this year, the company announced that it has been awarded permits by the EPA to sequester CO2 captured from STRATOS in deep underground wells.
Michael Avery, President and General Manager of 1PointFive, said:
“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 support Palo Alto Network’s climate strategy, which includes a goal to achieve net zero by 2040 through 90% emissions reductions across Scopes 1, 2 and 3, and to mitigate any remaining emissions through carbon removal investments.
BJ Jenkins, President of Palo Alto Networks, said:
“Collaborating with 1PointFive in this carbon removal credit agreement highlights our proactive approach toward exploring innovative solutions for a greener future.”
