Commercial, Energy Efficiency, GHG Emissions - January 19, 2024
Trafigura to Purchase CDR Credits
Trafigura, a global commodities group, announced that it has agreed to purchase carbon dioxide removal (CDR) credits.
The credits will be produced from 1PointFive’s first industrial-scale Direct Air Capture (DAC) facility, STRATOS, which is currently under construction in Texas.
1PointFive is a carbon capture, utilization and sequestration (CCUS) company.
This is Trafigura’s first transaction towards meeting its commitment as a Founding Member of the First Movers Coalition to purchase at least 50,000 tons of durable and scalable net carbon dioxide removal credits generated through advanced CDR technologies by 2030.
The advance purchase of DAC credits from 1PointFive aligns with Trafigura’s commitment to support early-stage technologies to enable high-quality carbon removal credits for its customers.
STRATOS is designed to capture up to 500,000 metric tons of CO2 annually when fully operational and is expected to be the largest facility of its kind in the world. The captured CO2 underlying Trafigura’s removal credits will be stored through durable subsurface saline sequestration.
“We are delighted to collaborate with 1PointFive as we expand our global customer offering for hard-to-abate sectors. Supporting the development of large-scale removals projects demonstrates our commitment to advancing carbon sequestration technologies, underpinning demand today to enable the scaling of production for tomorrow,” said Hannah Hauman, Global Head of Carbon Trading for Trafigura, in a statement.
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