1PointFive Secures Landmark 50,000 Metric Ton Carbon Removal Deal with JPMorganChase

HOUSTON, June 24, 2025 – 1PointFive, a leading carbon capture, utilization, and sequestration (CCUS) company and a subsidiary of Occidental (NYSE: OXY), today announced a significant long-term agreement with JPMorganChase. The global financial services firm has committed to purchasing 50,000 metric tons of carbon dioxide removal (CDR) credits over a 10-year period, enabled by 1PointFive's advanced Direct Air Capture (DAC) technology. This landmark agreement underscores the accelerating adoption of durable carbon removal solutions as corporations worldwide intensify their efforts to achieve ambitious sustainability goals and support the development of critical energy infrastructure within the United States.

The partnership between 1PointFive and JPMorganChase represents a pivotal moment in the nascent but rapidly expanding carbon removal market. Direct Air Capture technology, which physically removes CO2 directly from the atmosphere, is considered a crucial tool for addressing hard-to-abate emissions and achieving net-zero targets. Unlike carbon avoidance or reduction strategies, DAC actively reverses historical emissions, offering a permanent and verifiable solution for corporate climate commitments.

For JPMorganChase, this investment aligns with its broader environmental sustainability initiatives, which include facilitating green financing and reducing its operational carbon footprint. By securing a substantial volume of high-quality CDR credits, the bank is demonstrating leadership in supporting innovative climate technologies and contributing to the scaling of a vital new industry. This commitment provides 1PointFive with long-term revenue visibility, enabling further investment in the deployment and expansion of its DAC facilities, such as the Stratos plant currently under construction in Ector County, Texas.

Market Implications and Industry Trends

The carbon removal market is experiencing exponential growth, driven by increasing corporate demand for verifiable climate solutions and supportive government policies, such as the 45Q tax credit in the U.S. This agreement between a major financial institution and a DAC provider highlights a growing trend where companies are moving beyond traditional carbon offsetting to invest directly in carbon removal. This shift reflects a recognition that achieving global climate targets will require not only emissions reductions but also the active removal of legacy CO2 from the atmosphere.

The involvement of a company like JPMorganChase sends a strong signal to the market about the viability and necessity of DAC technology. It validates the business model for companies like 1PointFive and its parent, Occidental, which are at the forefront of developing and commercializing these technologies. The long-term nature of the agreement (10 years) provides stability and encourages further investment in the infrastructure required to scale DAC to gigaton levels.

Investment Insights for OXY Shareholders

For investors in Occidental (OXY), the parent company of 1PointFive, this agreement is a significant positive development. It reinforces Occidental's strategic pivot towards becoming a leader in carbon management and demonstrates the tangible progress of its 1PointFive subsidiary. While Occidental is primarily known as an oil and gas producer, its substantial investment in carbon capture and removal technologies positions it uniquely within the energy transition landscape.

This deal provides several key insights for OXY investors:

• Diversification and Future Growth: The success of 1PointFive's DAC projects offers a new, high-growth revenue stream that diversifies Occidental's traditional upstream business. As the world decarbonizes, Occidental's carbon management segment could become an increasingly important contributor to its overall valuation.
• ESG Alignment: Strong performance in carbon removal enhances Occidental's environmental, social, and governance (ESG) profile, potentially attracting a broader base of institutional investors focused on sustainable investing. This can lead to improved access to capital and a lower cost of financing.
• Technological Leadership: The ability to secure long-term contracts with major corporations like JPMorganChase validates 1PointFive's technological prowess and its ability to deliver at scale. This leadership position in DAC could provide a competitive advantage as the market matures.
• Monetization of Innovation: The agreement demonstrates a clear pathway for monetizing Occidental's significant R&D investments in carbon capture. It shows that there is robust demand for high-quality, verifiable carbon removal credits.

Investors should monitor future announcements regarding additional CDR agreements and the progress of 1PointFive's DAC plant deployments. The scaling of these operations and the continued securing of long-term off-take agreements will be critical indicators of Occidental's success in its carbon management strategy. This partnership with JPMorganChase is a strong testament to the growing commercial viability of carbon removal and Occidental's strategic foresight in this critical area.

Conclusion

The 1PointFive-JPMorganChase agreement is a landmark deal that underscores the increasing corporate commitment to durable carbon removal solutions. It not only provides a significant boost to 1PointFive's commercial pipeline but also signals a maturing market for Direct Air Capture technology. For Occidental shareholders, this partnership reinforces the strategic value and growth potential of its 1PointFive subsidiary, positioning the company as a key player in the global energy transition and carbon management economy.