Microsoft has signed an agreement with Occidental Petroleum to purchase carbon credits worth 500,000 tons of CO2. Over the next six years, 1PointFive, a subsidiary of US oil company Occidental Petroleum, will remove half a million tons of CO2 from the atmosphere using a direct air capture (DAC) plant still under construction and store it underground. The plant is being built in Texas and is expected to go into operation in mid-2025. The plan is to remove and store 500,000 tons of CO2 annually – around three percent of Microsoft’s emissions in the 2023 fiscal year. Construction of the plant is expected to cost over one billion US dollars.