July 9 (Reuters) - Carbon capture firm 1PointFive said

on Tuesday it has entered into an agreement with Microsoft ( MSFT )

to sell the tech giant 500,000 metric tons of carbon

dioxide removal (CDR) credits over six years.

1PointFive is the carbon capture, utilization and

sequestration unit of oil and gas firm Occidental Petroleum ( OXY )

. The agreement is a part of Microsoft's ( MSFT ) goal to become

carbon negative by 2030.

Earlier this year, telecom company AT&T ( T ) had agreed to

purchase CDR credits from 1PointFive as part of its goal to

reduce emissions and become carbon neutral in its global

operations by 2035.

Carbon credits are tradable permits that allow the owner to

emit certain amounts of greenhouse gases. Each credit permits

the emission of one metric ton of carbon dioxide or the

equivalent in other greenhouse gases.

1PointFive said the CDR credits for Microsoft ( MSFT ) will be

provided by STRATOS, its facility currently under construction

in Texas, which is designed to capture up to 500,000 metric tons

of carbon dioxide annually when fully operational.