Bain purchases 9,000 tons of engineered carbon removal credits from STRATOS DAC facility in Texas
Credits support Bain’s net negative emissions goal and expand its engineered CDR portfolio
Agreement highlights growing voluntary market demand for durable CDR ahead of policy and standards shifts
1PointFive, the carbon capture subsidiary of Occidental, has reached an agreement with Bain & Company for the purchase of 9,000 tons of direct air capture carbon removal credits over three years. The credits will be sourced from STRATOS, a commercial scale DAC facility in Texas that is advancing through start up operations, and stored via long term geologic sequestration. Bain described the purchase as part of a strategy to address residual operational emissions and maintain a net negative emissions commitment.
The 9,000 ton volume is equivalent to emissions from an estimated 10,000 long haul roundtrip commercial flights in economy class. The tonnage is modest relative to global removal requirements but viewed as meaningful in the engineered CDR market, where large scale supply remains limited and corporate forward procurement is one of the few credible signals of near term demand.
Financing Durable Removal
The agreement provides a financing contribution to the build out of the DAC ecosystem, where cost curves remain high and infrastructure requirements closely resemble oil and gas mega projects. Occidental and 1PointFive have positioned DAC as a strategic use case for their carbon management portfolio, combining upstream engineering experience with sequestration know how and Class VI permitting.
Anthony Cottone, President and General Manager of 1PointFive, said the collaboration reflects a shared commitment to innovation and adoption. He added: “We believe this agreement demonstrates continued momentum for the solution while supporting the development of vital domestic infrastructure.”
STRATOS is among the most closely watched DAC projects in North America. Federal and state incentives, including the Inflation Reduction Act’s 45Q tax credit for geologic sequestration, have helped narrow the economics for engineered removal and attracted both strategic investors and early corporate buyers. Durable storage has become a differentiating feature as voluntary buyers seek credits that meet stringent permanence and verification criteria.
Voluntary Market Demand for Engineered CDR
Bain has become one of the most active buyers in the voluntary carbon market’s engineered removal segment. The firm said it has procured 1.1 million tons of high integrity removals over five years across a diversified technology portfolio. Its carbon credit sourcing program has included biochar, ocean alkalinity, and other engineered pathways intended to complement nature based solutions and internal abatement measures.
Sam Israelit, Bain’s Chief Sustainability Officer, said the firm is proud to partner with 1PointFive and add DAC to its engineered portfolio. He stated: “Their track record for developing DAC technology coupled with their deep understanding of what it takes to deliver large scale infrastructure projects uniquely positions them to be a leader in this emerging segment.”
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Corporates have been selective in forward procurement due to cost, technology uncertainty, and an evolving standards landscape. Yet demand for durable removals has grown as companies face scrutiny over claims, integrity, and scope boundaries. DAC is positioned as a credible option for hard to abate residual emissions, although volumes remain constrained and unit prices remain significantly above nature based alternatives.
Implications for Investors and Policy Makers
The Bain and 1PointFive agreement extends a trend of early movers committing to engineered removals despite limited supply scale. It comes as policymakers assess how durable carbon removal fits within long term climate plans, including pathways consistent with the Paris Agreement and emerging national net zero strategies. The U.S. Department of Energy has funded DAC hubs, while the European Union is finalizing a Carbon Removal Certification Framework and evaluating market creation mechanisms. These moves could shape the future economics and eligibility of DAC credits across compliance and voluntary markets.
For investors, the development reinforces the possibility of a future market where durable removals operate as a distinct asset class with differentiated verification, permanence, and contractual structures. For corporates, it highlights the importance of internal abatement first, balanced with a credible approach to residual emissions.
Global Context
Engineered removals are widely expected to expand as climate models indicate the need for both deep decarbonization and permanent carbon removal to stabilize temperatures. Current project pipelines suggest multi decade growth with a continued role for early corporate offtake agreements to de risk infrastructure and accelerate deployment.
The Bain and 1PointFive announcement adds to a growing set of DAC transactions that are shaping expectations around scale, cost, and policy integration. As markets mature, the next phase will likely involve greater alignment between voluntary procurement, compliance systems, and capital market participation. For a global audience of C suite leaders, the development underscores the strategic relevance of durable removal in future net zero value chains and climate aligned investment strategies.
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