Carbon capture solutions will be investigated by Airbus and airlines

Airbus and more than six airlines said on Monday that they had signed letters of intent to investigate acquiring carbon reduction credits to offset air travel emissions.

Airbus, Air Canada, Air France-KLM, EasyJet, International Airlines Group (LON:ICAG), LATAM Airlines (OTC:LTMAQ) Group, Lufthansa Group, and Virgin Atlantic have committed to "negotiations on the prospective pre-purchase of certified and permanent carbon elimination credits commencing in 2025."

Airbus' partner 1PointFive, a subsidiary of Occidental Petroleum Corp's (NYSE:OXY) Low Carbon Ventures division, will offer the carbon removal credits. 1PointFive proposes to build a direct air carbon capture and storage facility in Texas that will be able to remove up to 1 million tons of C02. According to Steve Kelly, CEO of 1PointFive, construction is scheduled to commence by the end of the year and conclude in 2024.

According to the companies, the partnership between Airbus and 1PointFive includes the four-year pre-purchase of 400,000 tons of carbon removal credits.

Julie Kitcher of Airbus stated, "These early letters of interest reflect a concrete step toward the implementation of this promising technology for both Airbus' decarbonization plan and the aviation industry's objective of attaining net-zero carbon emissions by 2050."

The airline industry, which accounts for around 3 percent of global carbon dioxide emissions, faces severe impediments in its pursuit of aggressive emission reduction goals. According to airline executives, carbon capture might be one component of a complex strategy to reduce emissions.

United Airlines announced in 2020 a multimillion-dollar investment in 1PointFive's intention to construct an industrial-scale direct air capture plant in the United States.

It has not yet been proven on a large scale. A single ton of carbon dioxide costs hundreds of dollars to gather. Earlier attempts at carbon capture and storage (CCS) have been unsuccessful.