CDR Innovator Interview - 1PointFive

'Unbound Showcase' is a globe-spanning series of interviews with pioneers of carbon dioxide removal (CDR). We’re questioning innovators, business leaders, policymakers, academics, buyers, and investors taking on the challenge of our lifetime—gigaton-scale carbon removal from the earth's atmosphere.

Today’s interview is with Anna Stukas , VP of Strategic Partnerships at Direct Air Capture and CO2 sequestration specialists 1PointFive .

“What is 1PointFive?”

Anna Stukas - At 1PointFive, we’re on a mission to help curb global temperature rise to 1.5°C by 2050. As a Carbon Capture, Utilization and Storage (CCUS) company, we’re working towards this today by deploying decarbonization solutions, including Carbon Engineering 's Direct Air Capture (DAC) technology, alongside geologic sequestration hubs.

STRATOS, our first DAC facility, is currently under construction in Ector County, Texas. Once fully operational, it is designed to capture up to 500,000 tonnes of carbon dioxide annually. We are also engaged in detailed engineering for a second DAC facility in South Texas at the King Ranch.

Today, a number of industry leaders – including Airbus , Amazon , and AT&T – have built DAC carbon dioxide removal (CDR) credits from STRATOS into their net zero plans. We believe DAC CDRs provide a practical, transparent and durable way to help hard-to-decarbonize industries address their emissions.

"What was the inspiration that led to the creation of your carbon removal business?"

Anna Stukas - We’re working to address one of the most urgent challenges of our lifetime: climate change. To make a difference, our focus is on solutions capable of climate-relevant scale. By commercializing DAC and CCUS solutions, 1PointFive is working to provide practical options for organizations to reduce their carbon impact today. 

Several key decisions were made early in developing Carbon Engineering’s DAC technology to enable it to be built at scale. The technology works by drawing air into a facility using a series of large fans. The air comes in contact with a chemical solution that binds to the CO2 molecules, removing them from the air and then releasing them back into the atmosphere. The CO2-rich solution is then processed through a series of reactions that separate, purify, and compress the CO2 for use in sequestration or other products.

Carbon Engineering’s approach to DAC uses closed-loop chemistry, which means the process can operate continuously, inputs can be reused, and waste is minimized. Facilities that use Carbon Engineering's technology also leverage equipment and infrastructure that’s already in play in other industries, like industrial cooling towers, which means we know how to operate them, and there are existing supply chains.

"Can you share that 'aha' breakthrough in your business' journey that left you especially excited about its potential?"

Before joining 1PointFive, my career with Carbon Engineering spanned nearly a decade, and I have had many ‘aha’ moments and learned lessons along the way. 

On the technology side, Carbon Engineering was the first company to publish a peer-reviewed DAC paper that included a commercial engineering cost breakdown, showcasing the technology's scalability. In 2018, this was a key moment for an emerging industry. We conveyed that our technology is feasible and affordable and can be deployed today. Since then, Carbon Engineering has continued to advance DAC technology, building the Innovation Centre in 2021, which is dedicated to R&D and technology innovation and optimization.

From the policy lens, California added DAC to sequestration as a crediting pathway for their Low Carbon Fuel Standard in 2019. Their leadership in the space brought DAC into a compliance market for the first time. This started a dialogue about the role carbon removals with durable storage on geologic timescales must play in emission reduction pathways, like low carbon fuels, particularly in hard-to-abate sectors. We are seeing policy expanded in the US, Canada, the UK and other countries that recognize the importance of durable carbon removals in reaching net zero.  

Industry and business have also played a critical role in kickstarting DAC solutions. In 2021, Shopify was the first company to work with Carbon Engineering to add DAC CDR credits to its portfolio. In 2022, Airbus agreed to purchase 400,000 tonnes of CDR credits from 1PointFive, which remains one of the world’s largest DAC CDR purchases and was a big transaction for the carbon removal credit industry. 

The last ‘aha’ moment I’ll leave you with is on commercial deployment. In April 2023, we celebrated the ground-breaking for STRATOS, our first commercial facility - which was a surreal moment on a windy day just outside of Odessa in Ector County! The construction is now well underway, and the plant is expected to be commercially operational in mid-2025. After many years with Carbon Engineering, it’s huge to see the technology roll out commercially for the first time! 

“What are the trends you’re seeing in the market for buyers? Who is most interested?” 

We’ve seen sustained and growing support from the technology industry, which has really positioned itself as a leader in the space. As I mentioned earlier, Shopify agreed to purchase DAC CDR credits. Last year, Amazon signed an agreement with 1PointFive for 250,000 metric tonnes of CDR credits over 10 years. Companies like Shopify Inc and Amazon are leaders in helping kick-start a CDR industry through voluntary purchases that support decarbonizing today ahead of emerging requirements.

We’re also seeing growing voluntary engagement from hard-to-decarbonize sectors, like aviation, which are seeing compliance obligations on the horizon this decade. Even with rapid efficiency improvements, switching to Sustainable Aviation Fuel, and other essential decarbonization tools, residual carbon emissions must be addressed. The carbon removal required in the International Air Transport Association’s most recent Net Zero Roadmaps is estimated at least 500 million tonnes annually by 2050. Investment in removals needs to start today for net zero to be available at the scale and cost needed. A number of airlines, including Japan’s ANA, Air Canada , easyJet , and Lufthansa have purchased DAC CDR credits that will be enabled by 1PointFive’s first facility – STRATOS. 

"How are you approaching scalability, and what tools or strategies have proven most effective in levelling up your solution?"

Carbon Engineering envisioned a path to large-scale DAC from day one. Founded in 2009, the goal was to figure out how to capture climate-relevant volumes of CO2 per year cost-effectively while also mitigating technical risk. 

Today, our approach to scalability leverages two pathways. The first is 1PointFive’s global deployment approach, under which we plan to standardize plants to deliver complete, operationally ready facilities to local partners. Under this model, Carbon Engineering will bring the DAC technology, and 1PointFive will build the DAC plants using CE’s technology and carbon sequestration hubs. Both will leverage Oxy’s strong project engineering and 50+ years of experience in carbon management. 

The other critical piece is Carbon Engineering’s Innovation Centre, based in Squamish, Canada. To scale and enable widespread deployment, we continue to advance the technology and bring the cost per tonne down. The space is our research and development headquarters, where innovations are tested and validated to incorporate greater efficiencies and cost reductions into commercial plants. At the core of the decision for Oxy and Carbon Engineering to officially join forces last year was the continued commitment to invest in the development of the technology and the global reach to accelerate the implementation of DAC-enabled climate solutions worldwide.

“What's the biggest challenge your business/the industry at large is facing in 2024, and what do you think is required to solve it?”

Anna Stukas - Today, the challenge is developing and scaling technologies like DAC faster to further reduce costs and build a commercial carbon removal industry.  Within this, the obstacles we face as a company and as an emerging industry continue to centre around policy and awareness.

We’re seeing this on the market demand side, particularly regarding compliance markets. It’s important to advocate for performance-based policies that embody principles that start low and grow—leaving room and flexibility for innovating over time while also recognizing high-integrity solutions today. Ultimately, effective policies can be designed with incentives to help drive solutions into deployment at a rate that matches compliance measures coming into place.

Unbound Summits’ mission focuses on unrivalled connections, new insights and unbound CDR opportunities. For more information on 1PointFive and a cautionary note regarding forward-looking statements in this interview, please visit 1pointfive.com.