Carbon capture company 1PointFive has just signed a new deal for the sale of carbon dioxide removal (CDR) credits from Direct Air Capture (DAC) with Trafigura.
The agreement marks Trafigura’s first transaction in its goal to purchase a minimum of 50,000 tons of CDR credits by 2030 – a commitment stemming from the company’s role as Founding Member of the First Movers Coalition.
The initiative was launched by the World Economic Forum (WEF) and the US government with the aim of leveraging the purchasing power of its members in order to boost the most critical, emerging climate technologies.
Trafigura made its commitment public exactly one year ago, in January 2023, and has chosen to support 1PointFive’s first industrial-scale plant STRATOS with its first purchase of durable carbon removals.
For 1PointFive, the deal with Trafigura is the latest in a series of similar major purchase agreements with other organizations, including Japanese airline ANA, TD Bank, Amazon, and Boston Consulting Group.
The STRATOS DAC facility is currently under construction, with an expected completion date set somewhere in mid-2025.
And once operational, the carbon removal plant will become the largest of its kind on a global scale, reaching a CO2 removal capacity of 500,000 metric tons per year.
The CO2 captured from the atmosphere will be stored via durable subsurface saline sequestration.
Michael Avery, President and General Manager of 1PointFive commented on the new partnership between the two companies: “Our work with Trafigura is rooted in a shared commitment to the climate and an understanding of the critical role that durable carbon removal, specifically Direct Air Capture, plays in helping organizations address their carbon footprint.”