Amazon.com Inc (NASDAQ:AMZN) announced on Tuesday that it will support the world’s largest deployment of direct air capture (DAC) technology by committing to purchase 250,000 metric tons of carbon removal over 10 years from STRATOS, a plant owned by carbon removal technology company 1PointFive.
1PointFive is a subsidiary of US oil and gas company Occidental Petroleum Corp.
The e-commerce giant said the carbon removal purchase is equivalent to the amount of carbon stored naturally across more than 290,000 acres of US forests.
It added that the carbon captured under the agreement will be stored deep underground in saline aquifers, which are large geological rock formations that are saturated in salt water.
The company noted the CO2 in the atmosphere filtered out by DAC technology can also be used to create products such as building materials, like concrete, bricks, and cement.
According to the US Environmental Protection Agency (EPA), 250,000 metric tons of carbon dioxide is equivalent to the emissions in one year from 55,633 gasoline-powered cars.
As well, Amazon said its Climate Pledge Fund is making an investment in CarbonCapture Inc, a climate technology company recognized for its pioneering modular DAC systems.
The announcement follows Microsoft’s recent agreement to buy carbon credits from California-based startup Heirloom Carbon, which uses limestone to remove carbon from the atmosphere.
Heirloom’s DAC Hub was recently selected by the US Department of Energy for up to $600 million in matching funding from the Bipartisan Infrastructure Law, CNBC reported.
Shares of Amazon.com eased 1.3% to $141.24 in late-morning trading on Tuesday and have gained 65% year to date.
Contact Sean at sean@proactiveinvestors.com