Palo Alto Networks Buys DAC Carbon Credits Deal

In a major breakthrough reflecting the increasing private sector investment in the fight against climate change, cyber security giant Palo Alto Networks signed an historic deal with carbon removal company 1PointFive to buy 10,000 tons of carbon dioxide removal (CDR) credits. The credits, which will be supplied over a period of five years, are backed by Direct Air Capture (DAC) technology and were generated at 1PointFive's STRATOS Texas plant—a first-of-its-kind commercial-scale DAC facility in the world.

The collaboration refers to increasing corporate fashion to pursue high-integrity, science-led solutions in the pursuit of its long-term goals of sustainability. For Palo Alto Networks, the deal is part of an extensive decarbonization plan for lowering its climate footprint and reaching global climate action targets. The action aligns with the company's aspiration to pursue alternative solutions to balance hard-to-abate emissions—hard-to-abate emissions that are difficult to overcome through operational adjustments only.

1PointFive, which is owned by Occidental's low-carbon businesses and a carbon capture, utilization, and sequestration (CCUS) pioneer, will produce the carbon removal credits from its STRATOS DAC facility. The facility removes CO₂ directly from the atmosphere and secures it through saline sequestration—a process of injecting trapped CO₂ into deep geologic reservoirs where it is held securely and permanently. This renders removal measurable and permanent, but also traceable, and this helps to ensure that some of the fears that some carbon offsetting will be non-credible are alleviated.

Slated for release this fall, the STRATOS facility is a key milestone toward DAC deployment in America. Scalable by design, it will be at the forefront of establishing a domestic carbon removal industry that can meet public and private sector climate commitments.

Michael. Avery, President and General Manager of 1PointFive, highlighted the. significance of the deal in the overall development of climate technology. "We are excited to work with Palo Alto Networks and apply Direct Air Capture to their sustainability platform," he. said. "This transaction is added momentum for high-integrity carbon removal and the advancement of DAC technology toward enabling energy development within the United States."

DAC technology has come to be highly appreciated as a vital weapon in the climate solutions kit, especially for governments and corporations grappling with the challenge of offsetting any remaining emissions following deep decarbonization. Unlike conventional carbon offsets that depend on nature-based methods such as reforestation, DAC presents a less uncertain, technology-based alternative with transparent carbon accounting.

Palo Alto Networks President BJ Jenkins emphasized the forward-looking aspect of the partnership. "Partnership with 1PointFive on this carbon removal credit transaction demonstrates our forward-looking strategy for seeking new solutions for a more sustainable future," Jenkins stated. The transaction evidences the increasing strong focus in the enterprise and tech communities for structuring environmental sustainability into business governance and long-term planning.

The carbon removal credits from the transaction will not only support Palo Alto Networks to advance on its climate goals but also act as an accelerator for wider DAC technology deployment. It is a signal to the market that companies will invest in high-quality climate technology—if they satisfy high standards of transparency, permanence, and additionality.

The move comes as voluntary carbon markets come under greater scrutiny, with concerns over the environmental credibility of certain offset programs. In doing so with a partner like 1PointFive and using a scientifically grounded approach like saline sequestration, Palo Alto Networks is amplifying responsible corporate climate leadership.

Additionally, this transaction also highlights public-private partnerships as a key factor in upscaling next-gen climate technologies on a large scale. While STRATOS will commence its operations within the next few weeks, the successful implementation of this transaction can potentially unlock further corporate investment in DAC and other engineered solutions purported to be needed to achieve net-zero emissions worldwide.

As international temperatures keep rising and climate targets become more stringent, businesses in every industry are turning toward more outside-the-box solutions beyond the conventional mitigation strategies. The example of Palo Alto Networks–1PointFive illustrates how technology and strategic collaborations can be harnessed together to solve the latest environmental issues—while providing opportunity windows for innovation, leadership, and responsibility in transitioning to a low-carbon economy.

With this new agreement, 1PointFive is a carbon removal infrastructure leader, and Palo Alto Networks moves closer to becoming climate responsible and inspiring others to do the same. With DAC technology innovation and building carbon markets, these kinds of initiatives can eventually become the new norm for high-integrity emissions removal