Occidental Petroleum and Amazon Team Up to Try to Save the Planet
The world is racing to reduce carbon emissions to prevent the worst impacts of climate change. The bulk of that focus has been on cutting the amount of carbon emitted into the air by switching energy sources from fossil fuels to cleaner alternatives. Amazon (NASDAQ: AMZN) has been a leader in supporting renewable energy. It's the largest corporate buyer of renewable energy on the planet.
However, renewables are only part of the solution. Carbon capture, utilization, and sequestration (CCUS) is emerging as a potentially viable option to help decarbonize the global economy. Occidental Petroleum (NYSE: OXY) is a leader in this technology. The oil giant's ambitious CCUS plans recently got a big boost from Amazon, which agreed to buy carbon dioxide removal credits from the company to support its first direct air capture (DAC) facility in Texas. The strategic collaboration will help Amazon reach its climate goals while boosting Occidental's emerging CCUS business.
Amazon has agreed to buy 250,000 metric tons of carbon dioxide removal credits from Occidental Petroleum's 1PointFive subsidiary over a 10-year period. That's the equivalent of the carbon dioxide naturally stored in over 290,000 acres of forests. The purchase supports Occidental's STRATOS development, its first large-scale DAC facility in Texas. The plant will be able to capture up to 500,000 metric tons of carbon dioxide directly from the air each year when it starts operations in mid-2025. The company expects to spend $1.1 billion to build the facility.
Source Fool.com
Occidental Petroleum Corp. Stock
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