JPMorgan Chase agrees to a 10-year carbon removal contract with Oxy's 1PointFive for decarbonization purposes.
### JPMorganChase Invests in Direct Air Capture Technology with New Agreement
JPMorganChase, a leading global financial institution, has taken a significant step towards addressing its operational emissions and supporting the development of carbon removal technologies. The bank has agreed to purchase 50,000 metric tons of CO2 removal credits over a 10-year period from 1PointFive, a subsidiary of energy giant Occidental (Oxy).
This agreement marks a key milestone in JPMorganChase's carbon removal strategy, which involves acquiring carbon credits from various sources to offset its emissions. The credits will be produced using Direct Air Capture (DAC) technology at 1PointFive's STRATOS facility in Texas, which is expected to be commercially operational this year.
The captured CO2 will be stored through saline sequestration. This method involves injecting the CO2 into deep underground rock formations, where it will be safely and permanently stored. The DAC plant is operated by 1PointFive, a subsidiary of Occidental, which has significantly invested in DAC technology. Earlier this year, 1PointFive was awarded permits by the EPA to sequester CO2 captured from STRATOS in deep underground wells.
The agreement with JPMorganChase helps build infrastructure that creates economic opportunities in the United States. Taylor Wright, Head of Operational Decarbonization at JPMorganChase, stated that the bank is proud to support the large-scale deployment of DAC technology.
The new agreement is part of JPMorganChase's strategy to address operational emissions. Michael Avery, President and General Manager of 1PointFive, stated that the agreement further demonstrates how leading organizations are integrating Direct Air Capture credits into their portfolios.
This is not the first time JPMorganChase has engaged in carbon removal agreements. Previously, the bank announced a 450,000 ton carbon removal agreement with CDR project developer CO280. The transaction helps to establish a market for high-quality and durable carbon removal credits.
The International Energy Agency (IEA) lists Direct Air Capture technology as a key carbon removal option in the transition to a net-zero energy system. The momentum from CDR buyers, such as JPMorganChase, helps move DAC technology forward. This agreement aligns with JPMorganChase's ongoing efforts to help scale the growth and development of carbon removal technologies.
In line with these efforts, 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 to date, designed to capture 500,000 tonnes of CO2 per year when fully operational.
This news underscores the growing interest and investment in carbon removal technologies, as organizations and governments worldwide seek solutions to combat climate change and achieve net-zero emissions.
Science and environmental-science play a pivotal role in JPMorganChase's carbon removal strategy, as they underpin the implementation of Direct Air Capture technology, which is a key focus of the bank's decarbonization efforts. The use of Direct Air Capture technology, a critical piece of environmental-science innovation, is fostered by large-scale investments in this field, notably by Occidental through its subsidiary 1PointFive, as showcased by their agreement with JPMorganChase. Technology, in this instance, enables the extraction of CO2 from the atmosphere and its storage, thus contributing to the fight against climate change and the pursuit of net-zero emissions.
