Carbon capture firm 1PointFive said on Wednesday telecom company AT&T (T.N) has agreed to purchase carbon dioxide removal credits as part of its goal to reduce emissions and become carbon neutral in its global operations by 2035.
1PointFive is the carbon capture, utilization and sequestration unit of oil and gas firm Occidental Petroleum (OXY.N). AT&T will buy the credits from 1PointFive's Stratos, a direct air capture facility that is currently under construction in Texas.
AT&T and 1PointFive did not disclose the financial details of the agreement.
Carbon credits are tradable permits that allow the owner to emit certain amounts of greenhouse gases. Each credit permits the emission of one metric ton of carbon dioxide or the equivalent in other greenhouse gases.
Stratos is designed to capture up to 500,000 metric tons of carbon dioxide annually when fully operational.
1PointFive had earlier announced carbon credit agreements with companies such as Amazon (AMZN.O), Boston Consulting Group and Trafigura, among others.
