Oxy, Microsoft Clinch Record Carbon-Removal Deal (2)

Oil giant Occidental Petroleum Corp. clinched a record carbon removal deal with Microsoft Corp. amid the software titan’s push to reduce its expanding emissions.

Occidental, which is building an carbon-capture portfolio through its subsidiary 1PointFive, plans to build a fleet of plants that suck carbon dioxide directly from the air. Microsoft on Tuesday agreed to buy 500,000 metric tons of credits from the company’s Stratos plant in Texas, which is expected to start up next year.

The deal marks the single largest purchase of credits generated by so-called direct air capture, or DAC — bolstering Occidental’s position in the ...