Palo Alto Networks Strike Agreement for Elimination of 10,000 Tons of Carbon with Oxy's 1PointFive
In a significant stride towards a greener future, Palo Alto Networks, a leading cybersecurity company, has agreed to purchase carbon removal credits from 1PointFive's STRATOS facility. This direct air capture (DAC) plant, located in Texas, is set to come online by mid to late 2025 and aims to capture around 500,000 metric tons of CO2 annually.
The carbon dioxide captured by STRATOS will be permanently stored through saline geologic sequestration in underground reservoirs near the facility, ensuring long-term carbon storage. This move aligns with Palo Alto Networks' commitment to achieve net zero emissions by 2040, with 90% reductions across Scopes 1, 2, and 3, and carbon removal investments for the remaining emissions.
1PointFive, a CCUS-focused subsidiary of Occidental (Oxy), has agreed to purchase 10,000 tons of carbon dioxide removal (CDR) credits over five years from Palo Alto Networks. BJ Jenkins, President of Palo Alto Networks, expressed support for the agreement, stating that it is a proactive approach towards exploring innovative solutions for a greener future.
This agreement further supports the development of direct air capture technology in the United States. In addition to this, Oxy, through 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.
Several major companies, including Microsoft, Amazon, and Palo Alto Networks, have shown strong commercial backing and demand for the captured CO2. Microsoft has secured 500,000 tons over six years, and Amazon has committed to acquiring 250,000 tons over a decade. This collaboration underlines the growing adoption of durable carbon removal solutions.
The project has received substantial financial backing, including a $550 million investment from BlackRock through a joint venture with Occidental's subsidiary 1PointFive. This investment follows the U.S. government’s $1.2 billion funding for DAC carbon removal hubs in Texas and Louisiana, highlighting strong federal support to scale these clean technologies.
1PointFive positions STRATOS as a foundational hub for carbon removal via DAC and plans to expand the use of captured CO2 not only for permanent storage but also for carbon utilization, such as creating new products through their AIR TO FUELS™ technology. This aligns with their broader strategy to help limit global temperature rise to 1.5°C by deploying both direct air capture and CCUS infrastructure at scale.
In summary, the agreement between Palo Alto Networks and 1PointFive signifies a significant step towards the commercialisation of direct air capture technology in the US. With clear commercial and public-sector support, STRATOS is one of the leading large-scale, operational DAC projects contributing to carbon capture, utilisation, and sequestration efforts in the US.
- The agreement between Palo Alto Networks and 1PointFive reflects a considerable advancement in the commercialization of carbon removal via direct air capture (DAC) technology, which is a key focus area in environmental science aiming to mitigate climate-change.
- This partnership not only highlights the growing ad Options for greener business practices in the finance sector, with significant investments from entities like BlackRock, but also underscores the increased demand from major companies like Microsoft, Amazon, and Palo Alto Networks for carbon removal solutions.
- With 1PointFive's strategic expansion plans for STRATOS, including carbon utilization through their AIR TO FUELS™ technology, the project serves as a foundational hub for carbon removal, contributing to science-based solutions for climate-change while fostering innovation in the environmental-science and business sectors.
