E-commerce giant Amazon.com (AMZN.O) has revealed its first investment in direct air capture (DAC) technology, announcing its commitment to acquiring “250,000 tons of removal credits over 10 years,” as per the company’s statement.

Amazon will secure these credits from the 1PointFive direct air capture (DAC) plant in Texas, a project developed by Occidental’s Oxy Low Carbon Ventures subsidiary. These credits will play a vital role in helping Amazon meet its climate target, aiming for net zero carbon emissions by 2040. Financial details of the deal, however, remain undisclosed.

“Projects that suck carbon dioxide (CO2) out of the air can generate removal credits that can then be bought and used by companies to help offset emissions they are unable to cut from their business,” Amazon explained, highlighting the potential of DAC technology.

Amazon’s 2022 carbon footprint stood at “71.27 million metric tons of carbon dioxide equivalent, including Scope 3 emissions.” Scope 3 emissions encompass those generated indirectly, beyond the company’s control or ownership, such as employee business travel.

In response to the move into DAC technology, Jamey Mulligan, Head of Carbon Neutralization Science and Strategy at Amazon, emphasized the necessity of a collaborative approach: “We have to have massive scale very quickly, 1PointFive and Occidental have significant knowledge, expertise and workforce and experience that’s needed to scale industrial plants like this.”

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Despite the promise of DAC technology, it has faced scrutiny due to the involvement of oil companies in its development. However, the 1PointFive project has garnered recognition and support, securing a major U.S. Department of Energy grant for DAC technology.

In Amazon’s pursuit of carbon neutrality, it is not only focused on reducing its emissions and adopting renewable energy but also exploring various carbon offset solutions. These offsets may encompass a range of projects, including those rooted in nature.

“We have to have massive scale very quickly, 1PointFive and Occidental have significant knowledge, expertise and workforce and experience that’s needed to scale industrial plants like this,” said Jamey Mulligan, Head of Carbon Neutralization Science and Strategy at Amazon.

The 1PointFive project recently secured one of the largest U.S. Department of Energy grants for DAC technology.

Jamey Mulligan, Head of Carbon Neutralization Science and Strategy at Amazon, emphasized the need for a collaborative approach to scale up DAC technology rapidly.

The 1PointFive project was one of two large-scale DAC “hubs” last month selected for the largest U.S. Department of Energy grants available for the technology.

Amazon aims to reduce its emissions and increase its use of renewable energy while leveraging various carbon offset solutions, including nature-based projects, to achieve its net-zero emissions target.

Amazon’s investment in DAC is a significant step forward for the technology, but it is important to note that DAC is not a silver bullet for climate change. It is still a relatively expensive technology, and it is not clear how much carbon dioxide can be removed from the atmosphere at a large scale.

However, DAC has the potential to play a role in helping to meet climate goals, and Amazon’s investment is a sign that major companies are taking the technology seriously.