TD to buy carbon removal credits from 1PointFive DAC plant

1PointFive, a carbon capture, utilization and sequestration company, and TD Bank Group (TD), announced a purchase of carbon dioxide removal (CDR) credits from STRATOS – 1PointFive’s first Direct Air Capture (DAC) plant currently under construction in Texas.

Under the terms of the agreement, and subject to STRATOS becoming operational, TD Securities has agreed to purchase 27,500 metric tons of DAC CDR credits over four years. This represents one of the largest purchases of DAC CDR credits by a financial institution and demonstrates TD’s continuing strategic focus on energy transition, according to a news release.

STRATOS has been designed to be the first large scale commercial deployment of DAC technology globally, with the potential to capture and remove up to 500,000 metric tons of CO₂ from the atmosphere each year for secure and long-term storage in geologic formations. 1PointFive’s CDR credits are expected to provide a practical and high integrity solution for organizations to address their emissions.

With this transaction, TD Securities expects to add to its portfolio of voluntary carbon offsets, as it continues to build out its carbon advisory and trading capabilities in the voluntary and compliance carbon markets. These capabilities complement TD Securities’ broader ESG Solutions platform, with a focus on providing clients with short, medium and long-term solutions as they transition to a lower carbon economy. In addition, TD intends to use a portion of the credits from this transaction to offset its own operational emissions.

“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.

1PointFive, a subsidiary of Occidental, is progressing the development of Carbon Engineering’s Direct Air Capture technology, alongside other decarbonization solutions, at an industrial scale to help organizations achieve their net-zero goals. Under the agreement with TD Securities, the captured CO₂ underlying the removal credits will be stored through geologic sequestration and not through an enhanced oil recovery process.