1PointFive, the company developing the STRATOS direct air capture plant, announced today that it has sold 27,500 carbon removal credits to TD Bank Group. The plant is still under construction but it has already finalized several advance agreement for the purchase of credits that will equal the removal of one ton of CO2 from the atmosphere.
“As the need to move from climate commitments to action intensifies, corporations across all sectors are looking for tangible ways to achieve their net zero goals,” said Amy West, Global Head ESG Solutions, TD Securities. “We’re incredibly proud to partner with 1PointFive to support innovative, technology-based solutions that are intended to advance both our clients’ and our own decarbonization goals.”
The purchase will be spread over four years and ranks among the largest purchases by a financial company. It will act as another source of funding for the STRATOS plant, which is located and Texas and is slated to become the largest direct air capture to date with the capacity to remove up to 500,000 metric tons of carbon dioxide every year and is expected to become operations in mid-2025.
Reliable Carbon Credits
“We are proud to partner with TD Securities and believe their purchase demonstrates how Direct Air Capture can become a vital tool in an organization’s sustainability strategy and help further net-zero goals,” said Michael Avery, President and General Manager, 1PointFive. “Carbon removal credits from Direct Air Capture will be measurable, transparent and durable, with the goal of providing a solution for organizations to address their emissions.”
TD is involved with other project in the voluntary carbon offset space but the deal confirms that there is strong demand for technology-based carbon removal. The company is focused on developing its carbon advisory services alongside its ESG Solutions platform.
It becomes another prominent customer for STRATOS, which has already inked deals with Amazon (a deal for the impressive 250,000 credits), ANA Airlines and Houston sport franchises the Texans and Astros.
The plant utilizes technology from Carbon Engineering, a climate tech company recently acquired by Occidental in a $1.1 billion deal, and will rely on geologic sequestration of the carbon dioxide it will remove from the atmosphere.