Sweeping Up The Skies: Amazon Buys 250,000 Metric Tons Of CO2 Removal Credits From 1PointFive

Amazon.Com, Inc. AMZN has invested for the first time in direct air capture climate technology by agreeing to purchase 250,000 metric tons of carbon dioxide removal (CDR) credits over ten years. 

The CDR credits for Amazon will be enabled by STRATOS, 1PointFive's first commercial-scale DAC plant, currently under construction in Texas.

Under the 10-year agreement with Amazon, the captured CO2 underlying the CDR credits will be stored in saline reservoirs that are not associated with oil and gas production.

Also Read: Vodafone To Use Amazon's Satellites To Bring 5G To Africa, Europe

Amazon's Carbon Footprint Details

Amazon's 90% of the electricity consumed in 2022 was attributable to renewable energy sources, and the company is investing $2 billion through The Climate Pledge Fund to support the development of sustainable technologies.

The company said that to reduce the carbon footprint, the company is also pursuing changes such as reducing packaging weight per shipment for customers. 

Amazon plans 100% of the electricity consumed by 2025 to come from renewable energy sources, five years ahead of the company's original 2030 target. 

"Amazon's primary focus is to decarbonize our global operations and reach net-zero carbon by 2040 through our transition to renewable energy, building with more sustainable materials and electrifying our delivery fleet and global logistics," said Kara Hurst, vice president of worldwide sustainability at Amazon.

Other Tech Firms Reducing Carbon Footprint

Tech companies are increasingly placing emphasis on achieving net-zero carbon emissions in response to global climate concerns.

On Sep. 7, Microsoft Corporation MSFT signed a long-term contract to purchase up to 315,000 metric tons of CO2 removal over a multi-year period from Heirloom.

Alphabet Inc. GOOG GOOGL aims to reduce 50% of its combined and absolute emissions before 2030. The company plans to invest in nature-based and technology-based carbon removal solutions to neutralize remaining emissions.

Price Action: AMZN shares are trading lower by 0.68% to $142.12 premarket on the last check Tuesday.