JPMorgan Chase inks a decade-long agreement on carbon removal with Oxy's 1PointFive, aiming to combat climate change.
In a significant step towards addressing climate change, JPMorganChase has announced a new agreement to purchase 50,000 metric tons of carbon dioxide removal (CDR) credits over 10 years. These credits will come from a Direct Air Capture (DAC) plant in Texas, operated by 1PointFive, a subsidiary of energy giant Occidental (Oxy).
The DAC plant, named STRATOS, is 1PointFive's first DAC facility and is expected to start up this year. The new CDR credits will help JPMorganChase meet its carbon-negative or net-zero targets, as part of its strategy to address operational emissions.
This agreement builds on JPMorganChase's diverse, high-quality portfolio of carbon removal projects. The momentum from CDR buyers, like JPMorganChase, helps 1PointFive move the technology forward and build infrastructure that creates economic opportunities in the United States.
Oxy, through its DAC subsidiary 1PointFive, 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. When fully operational, STRATOS is designed to capture 500,000 tonnes of CO2 per year.
This is the latest in a series of carbon removal agreements by JPMorganChase. Earlier this year, the bank led a landmark $210 million debt financing facility for Chestnut Carbon, a nature-based carbon removal project developer, under a long-term 25-year carbon credit offtake agreement with Microsoft.
JPMorgan's carbon removal engagements primarily focus on long-term, finance-driven partnerships with nature-based projects like Chestnut Carbon, rather than specific arrangements with 1PointFive or CO280. These form a critical pillar in their strategy to mitigate operational emissions through voluntary carbon markets and sustainable finance innovation.
Taylor Wright, Head of Operational Decarbonization at JPMorganChase, stated that the bank is proud to support large scale deployment of DAC technology. Michael Avery, President and General Manager of 1PointFive, believes this agreement with JPMorganChase demonstrates how leading organizations are integrating Direct Air Capture credits into their portfolios.
The EPA has already awarded permits to 1PointFive for the sequestration of CO2 captured from STRATOS in deep underground wells. Occidental (Oxy) has also acquired DAC technology company Carbon Engineering in 2023 and DAC startup Holocene this year, further strengthening its position in the carbon removal market.
This agreement aligns with JPMorganChase's ongoing efforts to help scale the growth and development of carbon removal technologies. As more companies follow suit, we can expect to see a significant reduction in greenhouse gas emissions and a brighter future for our planet.
- JPMorganChase's purchase of 50,000 metric tons of carbon dioxide removal (CDR) credits from 1PointFive's Direct Air Capture (DAC) plant, STRATOS, supports its decarbonization strategy and aids in meeting its net-zero targets.
- The momentum from carbon removal buyers like JPMorganChase contributes to 1PointFive's mission to advance DAC technology and build infrastructure, creating economic opportunities in the United States.
- Taylor Wright, Head of Operational Decarbonization at JPMorganChase, expressed pride in supporting the large-scale deployment of DAC technology, emphasizing its role in mitigate operational emissions through voluntary carbon markets and sustainable finance innovation.
- Occidental (Oxy), through subsidiary 1PointFive and recent acquisitions of DAC technology companies Carbon Engineering and Holocene, strengthens its position in the carbon removal market, furthering its contribution to addressing climate change and the environment through science and technology.
