BMO becomes first bank to prepay for DAC CO2 removal
SUMMARY
The removal will be undertaken by a large-sized facility under construction in Texas.
By Joseph MurphyCanadian investment group BMO announced on November 24 it had become the first bank to pre-purchase the permanent removal of 1,000 metric tons of CO2 from the atmosphere using direct air capture (DAC) technology.
The removal will be undertaken by a large-sized facility under construction in Texas that will use technology provided by Carbon Engineering. The purchase was facilitated by London-based climate solutions provider BeZero Carbon.
BMO said its purchase would help establish a market for DAC, which in turn will help deliver on Paris climate goals. It is one of 94 banks from 39 countries that has joined the Net-Zero Banking Alliance, whose members have committed to offsetting emissions using only carbon removals.
The CO2 removal facility that BMO is reserving capacity at is being developed by 1PointFive. It is due online in 2024 and will capture up to 1mn mt/year of CO2. An interview with its technology developer Carbon Engineering can be read here.
