Palo Alto Networks Agrees to Acquire Carbon Removal Services Amounting to 10,000 Metric Tons from Oxy's 1PointFive Venture
In a significant move towards combating climate change, 1PointFive, a subsidiary of Occidental focused on carbon capture, utilisation, and sequestration (CCUS), has announced a five-year agreement with Palo Alto Networks to purchase 10,000 tonnes of carbon dioxide removal (CDR) credits.
The agreement, which will commence in 2025, is a testament to the growing corporate adoption of durable carbon removal solutions. The CDR credits will be generated by 1PointFive's flagship direct air capture (DAC) facility, STRATOS, located in the Texas Permian Basin. Upon completion in 2025, STRATOS will be the largest DAC plant in the world, designed to capture 500,000 tonnes of CO2 annually when fully operational.
The captured CO2 at STRATOS will be permanently stored through saline sequestration, with the company having secured Environmental Protection Agency (EPA) permits for underground CO2 sequestration.
Palo Alto Networks, aiming to achieve net-zero emissions by 2040, has focused on reducing emissions across Scopes 1, 2, and 3, and carbon removal investments for any remaining emissions. This agreement with 1PointFive supports their carbon removal strategy.
BJ Jenkins, President of Palo Alto Networks, stated that the carbon removal credit agreement with 1PointFive is an example of proactive exploration of innovative solutions for a greener future.
Looking ahead, 1PointFive plans expansion beyond STRATOS with next-generation DAC facilities, starting with one also in South Texas, aiming to remove up to 1 million tonnes of CO2 annually per facility. This expansion aligns with broader market and climate modeling that require massive scale-up of DAC to meet global net-zero targets by 2050.
Occidental's strategic investments, including acquisitions of Carbon Engineering ($1.1 billion in 2023) and DAC startup Holocene, bolster 1PointFive’s technology base and project pipeline, positioning the company as a leading player in scalable durable carbon removal solutions.
In summary, 1PointFive, through Occidental, is developing a series of carbon removal and sequestration projects in the U.S., including STRATOS in Texas, which is expected to be the largest DAC facility in the world upon completion. The agreement with Palo Alto Networks underscores growing corporate adoption of durable carbon removal solutions and supports Palo Alto Networks’ net-zero by 2040 climate goals.
Michael Avery, President and General Manager of 1PointFive, made a statement regarding the agreement, but specific details were not provided.
- This agreement between 1PointFive and Palo Alto Networks signifies the increasing incorporation of carbon removal solutions in business strategies, as part of Palo Alto Networks' aim to reach net-zero emissions by 2040.
- The utilization of carbon removal credits by Palo Alto Networks is a manifestation of their commitment to environmental science, addressing climate-change concerns through investments in renewable-energy technologies such as direct air capture (DAC) facilities.
- The finance sector plays a crucial role in this transition, as shown by Palo Alto Networks' purchase of CDR credits from 1PointFive, thereby supporting the carbon removal industry.
- With the planned expansion of DAC facilities by 1PointFive, including one in South Texas, the movement towards scalable carbon removal solutions is expected to gain momentum, aligning with global climate modeling for meeting net-zero targets by 2050.
