Japan’s largest airline, All Nippon Airways (ANA) [9202:JP], is taking a significant step towards carbon neutrality by signing an agreement to purchase 30,000 carbon dioxide removal (CDR) credits from 1PointFive, a Texas-based carbon capture firm, as reported by Nikkei Asia on August 1. These CDR credits will be generated through direct air capture (DAC) technologies, with each credit capable of offsetting one ton of carbon dioxide (CO2) emissions. Notably, 1PointFive is currently constructing its first DAC facility in Texas, which is expected to be the largest of its kind in the world, with an annual capture capacity of 500,000 tons. The facility is slated to begin operations by mid-2025.

By making this deal, ANA becomes the world’s first airline to commit to purchasing credits involving DAC technology, showcasing its dedication to embracing innovative solutions for decarbonization. ANA aims to diversify its decarbonization efforts and has outlined a roadmap to achieve carbon neutrality by 2050. In this plan, DAC and other carbon dioxide removal methods will account for 10% of the airline’s emissions reduction by 2050. The adoption of sustainable aviation fuel (SAF) will be the most substantial contributor, making up 70% of the reduction, while innovations in aircraft and operational enhancements will contribute the remaining 10%. Considering that SAF can only reduce up to 80% of life cycle CO2 emissions compared to traditional jet fuel, ANA recognizes CDR as a vital approach to offset the remaining 20% of its emissions. In March 2022, commercial aircraft manufacturer Airbus [AIR:FP] also entered an agreement with 1PointFive to pre-purchase 400,000 tons of CDR credits.

Sources:

https://asia.nikkei.com/Business/Transportation/Japan-s-ANA-to-offset-some-emissions-through-direct-air-capture

https://sg.finance.yahoo.com/news/ana-announces-carbon-dioxide-removal-123000508.html

https://www.airport-technology.com/news/ana-first-airline-co2-removal-purchase/

https://www.globenewswire.com/news-release/2022/03/17/2405660/0/en/1PointFive-announces-agreement-with-Airbus-for-the-purchase-of-400-000-tonnes-of-carbon-removal-credits.html