Trafigura, a global commodities trader, has announced its agreement to acquire an undisclosed quantity of carbon dioxide removal (CDR) credits from 1PointFive, a subsidiary of Occidental Petroleum. The CDR credits will be used to offset Trafigura's emissions. The financial details of the deal were not disclosed.
As a founding member of the First Movers Coalition, Trafigura is committed to purchasing a minimum of 50,000 CDRs produced through advanced technologies by 2030. The 1PointFive direct air capture (DAC) facility, located in Texas's Permian Basin, is expected to become operational next year. Initially, the plant will have the capacity to capture 500,000 metric tons of CO2 annually, with a potential for expansion to 1 million metric tons per year. The captured carbon will be securely stored underground in saline aquifers.
Trafigura states that this purchase will help reduce emissions related to energy and commodities supply. Additionally, it represents the beginning of a partnership between Trafigura and 1PointFive to promote DAC as an effective, transparent, and long-lasting carbon removal solution.
The partnership between Trafigura and 1PointFive is part of a series of CDR deals in recent months. Boston Consulting Group, Canada's TD Bank Group, and Amazon have also procured CDRs from 1PointFive.