JPMorganChase Inks 10-Year Deal For Carbon Removal

In a major step towards development of its operational decarbonization plan, JPMorganChase has signed a 10-year deal to buy 50,000 metric tons of carbon dioxide removal (CDR) credits from 1PointFive, a Direct Air Capture (DAC) subsidiary of Occidental, energy behemoth. The transaction is yet another milestone in the bank's growing roster of carbon removal initiatives, as it shows increasing place for recurring carbon removal as a means toward long-term climatic objectives.

The carbon credits are being produced at STRATOS, 1PointFive's initial commercial-scale DAC facility in Texas. STRATOS is anticipated to be operational within a year and will be among the world's largest DAC facilities when it is operational. The facility uses cutting-edge technology to extract CO₂ from the atmosphere, which is then permanently stored using saline sequestration—a process that keeps the captured carbon underground safely and creates long-term climate resilience.

This collaboration establishes JPMorganChase as a corporate high-quality CDR credit leader buyer. The bank sees the transaction as a central part of its approach to managing residual operational emissions that cannot be reduced directly or through clean energy adoption. JPMorganChase Operational Decarbonization Head Taylor Wright underscored the significance of such efforts to make net-zero commitments credible. "This offtake agreement is the foundation of our high-quality, diversified portfolio of carbon removal projects that will underpin our unabated operating emissions," said Wright. "As STRATOS goes onstream commercially this year, JPMorganChase is honored to enable large-scale deployment of DAC technology."

The STRATOS plant is a cornerstone of 1PointFive's long-term strategy to scale DAC solutions nationwide. With roots in Occidental, 1PointFive brings more than half a century of carbon management expertise to the table, providing it with the competitiveness advantage in the new and essential but still young carbon removal industry. 1PointFive President and General Manager Michael Avery embraced the transaction as an indication of increasing faith in DAC as a genuine climate solution. “We’re excited to work with JPMorganChase and believe this agreement further demonstrates how leading organizations are integrating Direct Air Capture credits into their portfolios,” said Avery. “Momentum from CDR buyers helps us move the technology forward and build infrastructure that creates economic opportunities in the United States.”

Direct Air Capture is more and more acknowledged by scientists, policymakers, and industry as a critical complement to emission-reducing efforts. Although the transition to renewable energy and increased energy efficiency are top priorities, all agree that removal of existing CO₂ from the air must happen in order to achieve global climate objectives. DAC technologies such as those being utilized by STRATOS have a scalable and robust solution capable of removing emissions from difficult sectors and past pollution forever.

The JPMorganChase-1PointFive transaction also represents a larger trend among leading US institutions to build durable CDR portfolios. They are not only designed to cancel out emissions, but to actually enable the development of near-term climate technologies. Through taking long-term offtake contracts, buyers such as JPMorganChase offer developers the funding certainty they require to make investments in infrastructure, reduce costs, and bring deployment at scale forward more quickly.

This recent news follows another historic carbon removal transaction by JPMorganChase earlier this year, where the bank committed to buying 450,000 metric tons of CO₂ removals from CO280 for $90 million. Both actions reflect the bank's commitment to positioning itself as a leader in advancing leading-edge carbon removal and aligning its business with Paris Agreement goals.

Partnership with 1PointFive is specifically significant against the backdrop of the strategic position of the facility in Texas and regional economic development potential. The investment in carbon removal infrastructure by the project creates jobs, encourages innovation, and enhances regional climate change resilience while reducing climate change at the global level.

As the pressure to respond to climate change is mounting, sustainable CDR technologies such as DAC are shifting from the periphery to the center. With demand from investors, regulation, and corporate need all increasing, mass carbon removal will form the backbone of the net-zero economy. For JPMorganChase, its acquisition of STRATOS is not only supporting it in achieving its own internal climate targets but also a wider commitment to enabling innovation, investing in climate solutions, and building a low-carbon world.