Amazon has agreed to purchase 250,000 metric tonnes of carbon dioxide removal (CDR) credits from carbon capture, utilisation, and sequestration specialist 1PointFive.
Formalised today (12th Sept), the deal will see the purchase of credits from 1PointFive’s first commercial-scale direct air capture (DAC) plant, currently under construction in Texas.
The plant is designed to capture up to 500,000 metric tons of CO2 annually when fully operational, making it the largest plant in the world, according to the US-based firm.
DAC is a process that separates CO2 from the air, helping to reduce legacy CO2 in the atmosphere. The separated CO2 can then be safely and permanently stored deep underground or converted into useful carbon-containing products like concrete that prevent its release back into the atmosphere.
The US Department of Energy estimates that reaching President Biden’s plan for a Net Zero emissions economy will require between 400 million and 1.8 billion metric tonnes of CO2 to be removed from the atmosphere and captured from emissions sources annually by 2050.
Michael Avery, President and General Manager of 1PointFive, says the deal with Amazon represents a significant commitment to DAC as a vital carbon removal solution.
The deal will also support Amazon’s Net Zero carbon by 2040 goals, which it hopes to achieve through its transition to renewable energy, building with more sustainable materials, and electrifying its delivery fleet and global logistics.
Kara Hurst, Vice-President of Worldwide Sustainability at Amazon, adds, “At the same time, we also need to seek every possible avenue to reduce carbon in the atmosphere. These investments in DAC complement our emissions reduction plans and we are excited to support the growth and deployment of this technology.”
The 2022 change to 45Q provide up to $85 per tonne of CO2 permanently stored and $60 per tonne of CO2 used for enhanced oil recovery or other industrial uses of CO2, provided emissions reductions can be clearly demonstrated.
The credit amount significantly increases for DAC projects to $180 per tonne of CO2 permanently stored and $130 per tonne for used CO2.
Finally, the 2022 changes include a seven-year extension to qualify for the tax credit, meaning that projects have until January 2033 to begin construction.
According to the Intergovernmental Panel on Climate Change (IPCC), the world needs to remove roughly one trillion tonnes of CO2 from the atmosphere over the course of this century to keep global warming below the 1.5 degrees celsius limit set by the Paris Climate Agreement.
CO2 Summit 2023
Shortages and sourcing challenges are the headline stories everyone’s talking about in CO2 supply. But the whole carbon dioxide value chain is transforming – as this story itself demonstrates.
Applications are not only emerging and evolving but demanding more of the industry and its sourcing too. That calls for new thinking in CO2 storage and distribution, but it also raises questions over the tracking and management of supply chains. How we see CO2 is changing, shifting from waste disposal to a value chain in its own right. This will see the tonnage utilisation of CO2 evolve beyond recognition.
Join gasworld this September as our North American CO2 Summit 2023 assesses the threats, challenges and opportunities ahead in carbon dioxide – how we find it, source it, purify it and deliver it. Learn about the changing face of CO2; the opportunities in direct air capture (DAC); supply chain strategies; carbon credits and legislation; and so much more.
Tickets are selling fast and sold-out early last year, so book your place now. For more information and how to attend, visit https://gasworldconferences.com/conference/north-american-co2-summit-2023-indianapolis/