OXY Occidental Petroleum Corporation

By Colin Kellaher

Canadian banking giant Toronto-Dominion Bank has agreed to buy carbon-dioxide-removal credits from Stratos, a direct-air-capture plant that Occidental Petroleum's 1PointFive unit is building in Texas.

Occidental and Toronto-Dominion on Wednesday said the bank's TD Securities unit will buy 27,500 metric tons of direct-air-capture credits over four years in one of the largest such purchases by a financial institution.

Occidental is investing $1 billion in the Stratos plant, which is slated to be commercially operational in mid-2025 and will use a complex of large fans to suck massive amounts of carbon dioxide out of the air and funnel it thousands of feet down deep wells into geological formations, where it should remain for centuries.

Toronto-Dominion said the deal adds to TD Securities' portfolio of voluntary carbon offsets as it works to build out its carbon advisory and trading capabilities in the voluntary and compliance carbon markets.

Toronto-Dominion, which is targeting net-zero greenhouse gas emissions associated with its operating and financing activities by 2050, said it plans to use a portion of the credits from the transaction to offset its own operational emissions.

Occidental's Stratos plant is expected to capture up to 500,000 metric tons of CO2 a year, and 1PointFive has said it could deploy more than 100 direct-air-capture facilities worldwide by 2035 under current compliance and market scenarios.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

November 01, 2023 08:55 ET (12:55 GMT)

Occidental Petroleum (NYSE:OXY)
Historical Stock Chart
From Apr 2024 to May 2024

Occidental Petroleum (NYSE:OXY)
Historical Stock Chart
From May 2023 to May 2024