Amazon, Occidental unveil 10-year carbon removal credit purchase deal (NYSE:OXY) - Seeking Alpha
Amazon, Occidental unveil 10-year carbon removal credit purchase deal (NYSE:OXY) | Seeking Alpha
Amazon, Occidental unveil 10-year carbon removal credit purchase deal
Occidental Petroleum Corporation (OXY)
AMZN By:
Carl Surran, SA News Editor
25 Comments NicoElNino
Occidental Petroleum's (NYSE: OXY) 1PointFive carbon removal subsidiary said Tuesday that Amazon ( AMZN) agreed to purchase 250K metric tons of carbon removal credits over 10 years from Stratos, the direct air capture plant it is building in Texas, as direct air capture seeks to become a viable carbon removal solution to help organizations further their climate goals.
Occidental ( OXY) is investing $1B in the Stratos plant, which is designed to capture up to 500K metric tons/year of carbon dioxide when commercially operational in mid-2025.
Under the agreement with Amazon ( AMZN), the captured CO2 underlying the carbon removal credits will be stored in saline reservoirs that are not associated with oil and gas production.
Amazon ( AMZN) said its purchase is equivalent to the amount of carbon stored naturally across more than 290K acres of U.S. forests.
The company said the Stratos plant will use digital infrastructure from Amazon Web Services to analyze real-time performance data and optimize operations, enabling 1PointFive to apply the learnings in its future plants.
Related Knowledge Center: Carbon capture
The federal government is investing heavily in the development of carbon capture and storage (or sequestration), which offers the enticing prospect of preventing carbon dioxide emissions produced during combustion from entering the atmosphere and contributing to climate change. But the technologies involved, while proven, remain expensive, an obstacle to widespread adoption.