Tech Giant Palo Alto Networks Secures Deal for Carbon Removal: 10,000 Tons from Oxy's 1PointFive Project
In a significant stride towards combating climate change, Occidental Petroleum (Oxy) is set to operate the world's largest direct air capture (DAC) facility, STRATOS, in Texas. This state-of-the-art facility, scheduled to become operational later this year, is expected to capture 500,000 tonnes of CO2 per year, with potential plans to scale up to 2.3 million tons annually in the future.
The captured CO2 from the STRATOS facility will be permanently stored through saline sequestration, a method previously granted permits by the Environmental Protection Agency (EPA) for 1PointFive, Oxy's DAC subsidiary. This agreement continues to build momentum for high-integrity carbon removal and supports the development of DAC technology in the United States.
Palo Alto Networks, a leading cybersecurity company, has entered into a carbon removal credit agreement with 1PointFive. As part of Palo Alto Networks' strategy to explore innovative solutions for a greener future, the company will purchase 10,000 tons of carbon dioxide removal (CDR) credits from 1PointFive over five years. The CDR credits will be generated using direct air capture technology from 1PointFive's STRATOS facility.
Occidental's commitment to carbon removal and sequestration projects is further strengthened by strategic acquisitions. Earlier this year, the company acquired DAC technology company Carbon Engineering for $1.1 billion, and more recently, DAC startup Holocene. These investments reflect Occidental’s strategy to create long-term environmental impact while generating revenue streams from carbon credits and industrial CO2 sales.
The STRATOS facility uses a potassium hydroxide and water solution to pull carbon dioxide directly from the atmosphere. The captured CO2 can either be permanently stored underground via secure geologic sequestration or utilized to produce new products. This project represents one of the largest DAC initiatives globally, reflecting Occidental’s ambition to integrate traditional operations with carbon management.
Financially, Occidental leverages its profitable oil and gas operations in the Permian Basin to fund these carbon capture technologies. The company also utilizes enhanced oil recovery (EOR) methods by injecting captured CO2 to increase oil extraction efficiency.
1PointFive, through its DAC subsidiary, is currently developing a series of carbon removal and sequestration projects in the U.S., including STRATOS in Texas. The agreement with Palo Alto Networks marks a significant step forward in the development and deployment of DAC technology, contributing to a more sustainable future.
[1] Occidental Petroleum Corporation. (n.d.). Our Strategy. Retrieved from https://www.oxy.com/our-strategy [2] Carbon Engineering. (n.d.). Direct Air Capture. Retrieved from https://www.carbonengineering.com/direct-air-capture [3] Holocene. (n.d.). About Us. Retrieved from https://www.holocene.co/about
- The strategic acquisition of DAC technology company Carbon Engineering and DAC startup Holocene by Occidental Petroleum is a testament to their commitment to carbon removal and sequestration projects.
- In the United States, 1PointFive, a DAC subsidiary of Occidental Petroleum, is developing a series of carbon removal and sequestration projects, including the world's largest direct air capture facility, STRATOS, in Texas.
- The agreement between Palo Alto Networks and 1PointFive for the purchase of carbon dioxide removal credits is a significant step forward in the development and deployment of DAC technology, supporting a more sustainable future.
- The financing of carbon capture technologies at Occidental Petroleum is achieved through profits from their oil and gas operations in the Permian Basin, as well as through enhanced oil recovery methods that involve the injection of captured CO2 to increase oil extraction efficiency.
