Dive Brief:
- Boston Consulting Group said last week it was purchasing 21,000 metric tons of carbon dioxide removal credits from 1PointFive — a carbon capture, utilization and sequestration company — over a three-year term.
- In addition to providing carbon removal credits, 1PointFive will collaborate with BCG through consulting services and help it develop business processes that back direct air capture carbon removal credits. The deal is in line with BCG’s goal of reaching net-zero climate impact by 2030.
- The carbon removal credits for BCG will be facilitated by STRATOS, 1PointFive’s first industrial-scale direct air capture facility, which is currently under construction in Ector County, Texas. Under the agreement, the captured carbon dioxide will be stored through durable geologic sequestration — a process that entails storing atmospheric carbon in underground geologic formations, such as porous rock formations.
Dive Insight:
1PointFive’s STRATOS facility is designed to capture up to 500,000 metric tons of CO2 annually once fully operational and is expected to be the largest direct air capture facility in the world, according to the company. STRATOS will begin commercial operations in mid-2025.
The carbon capture company is a subsidiary of Occidental Petroleum and launched in 2020 as part of Occidental’s Low Carbon Ventures businesses.
STRATOS plans to capture carbon dioxide directly from the atmosphere, which can then be safely stored deep underground or utilized to produce low carbon products. The facility will have the ability to store CO2 in saline formations, which creates a carbon removal credit that businesses can purchase to address their emissions, per 1PointFive.
“With this strategic agreement, BCG reaffirms its commitment to be an early adopter and to support the most promising CDR technologies to capture and store carbon durably,” David Webb, BCG’s chief sustainability officer, said in the press release.
This deal with 1PointFive marks the consulting group’s latest venture in the carbon capture space. Last year in June, BCG penned a 40,000 ton carbon removal agreement with Carbon Capture set to span over a five-year period. At the time, the partnership represented the second largest publicly announced direct air capture offtake deal in the world, by volume. Shortly after in December, the consulting group signed a 15-year deal with Swiss startup Climeworks, purchasing 80,000 tons of carbon dioxide removal and offering consulting services to the startup.
