Occidental secures $500M for carbon capture technology expansion
- 1PointFive, a subsidiary of Occidental Petroleum, has secured up to $500 million from the U.S. Department of Energy for its South Texas Direct Air Capture Hub.
- The initial phase includes a $50 million award to support engineering and community engagement, with plans to scale CO2 removal capacity significantly.
- This funding reflects the U.S. government's commitment to advancing carbon capture technology and highlights the potential for substantial climate impact.
Occidental Petroleum Corporation's subsidiary, 1PointFive, has received a significant funding boost from the U.S. Department of Energy's Office of Clean Energy Demonstrations. The initial award of $50 million is part of a larger commitment that could total up to $500 million to support the South Texas Direct Air Capture Hub located on the King Ranch. This facility aims to remove 500,000 metric tons of CO2 annually, with plans to scale up to over 1 million metric tons and potentially reach a capacity of 30 million metric tons per year in the future. The funding will be allocated in phases, focusing on essential activities such as engineering, permitting, and community engagement. The project is designed to enhance local benefits while addressing climate change through carbon capture technology. The total funding could increase to $650 million if a regional carbon network is developed in South Texas. Vicki Hollub, President and CEO of Occidental, emphasized the importance of this award, highlighting the U.S. Department of Energy's commitment to direct air capture technology and its confidence in the South Texas DAC Hub's potential to deliver significant CO2 removal. In addition to this funding, Occidental has also reported a substantial reduction in principal debt, amounting to $3 billion in the third quarter of 2024. This reduction is attributed to strong cash flow and proceeds from asset divestitures, indicating a positive financial trajectory for the company as it continues to invest in innovative carbon management solutions.