NYK Increases CO2 Credits Purchase from Occidental

NYK Line has signed a deal to buy more carbon dioxide (CO2) removal credits from 1PointFive, Occidental Petroleum Corp’s carbon capture and storage business.

The credits for the Japanese shipping company will be enabled by 1PointFive and BlackRock Inc’s Stratos direct air capture (DAC) project in Texas, on track to start operations this year, a joint statement said.

This is NYK’s second agreement to buy CO2 removal credits from the project.

“NYK is proactively driving decarbonization in the international shipping industry through a multifaceted approach that includes introducing fuel-efficient vessels, adopting low-carbon fuels such as biofuels and improving each vessel’s energy and operational efficiency”, commented NYK executive vice president Akira Kono. “Addressing the residual emissions that cannot be eliminated through operational or technological improvements alone requires CDR [carbon dioxide removal]”.

1PointFive president and general manager Anthony Cottone said the expanded partnership with NYK will help “demonstrate how direct air capture is uniquely positioned to deliver durable and verifiable carbon removal”.

NYK already has an agreement with ENEOS Corp under which the fellow Japanese company will procure CO2 removal credits from the Texas project.

“ENEOS will then sell these credits, along with the marine fuel it supplies, to NYK for five years starting in 2028”, NYK said in a press release December 18, 2024.

The parties have not disclosed the volume of credits committed to NYK in the two Stratos agreements.

1PointFive expects Stratos, under construction in Ector County, to be the biggest DAC facility in the world with a capacity to capture up to 500,000 metric tons a year of CO2, to be stored in saline formations.

The project has secured Class VI permits for CO2 sequestration. “The permits, the first issued to sequester CO2 from a DAC project, allow Occidental to leverage its expertise managing large quantities of CO2 while advancing technology that strengthens the United States’ energy security and furthers economic growth in Texas”, 1PointFive announced April 7, 2025.

“Occidental demonstrated that its technologies, processes, monitoring programs and other procedures meet or exceed federal and state requirements for injection wells that store CO2 in geologic formations more than one mile underground”, 1PointFive said.

Earlier this month 1PointFive said the project had received an AAApre rating with low execution risk from BeZero Carbon.

“AAApre represents BeZero’s assessment that a carbon credit from Stratos is in the category of credits that has the highest likelihood of achieving a tonne of CO2 removed once the facility begins capturing and storing CO2”, 1PointFive said September 15, 2025.

In another project, 1PointFive announced September 10, 2025, the formation of a 50-50 venture with Enbridge Inc to develop the Pelican Sequestration Hub and supporting infrastructure in Louisiana.

“1PointFive will develop the facilities to store CO2 deep underground and Enbridge will build and operate pipelines from customer facilities to the hub”, 1PointFive said.

“The Pelican Sequestration Hub, located in Livingston Parish, is anchored by a 25-year offtake agreement for approximately 2.3 million metric tons of CO2 per year from CF Industries’ and its joint venture partners’ (JERA Co Inc and Mitsui & Co Ltd) planned low-carbon ammonia production facility in Ascension Parish, Louisiana”.

1PointFive is pursuing DAC projects that compress emissions captured from the atmosphere into liquid and store these underground or use the CO2 to produce low-carbon products, it says on its website.

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