Occidental Subsidiary 1PointFive Bags US DoE Grant To Develop South Texas Direct Air Capture Hub

Biden-Harris Administration announced up to $1.2 billion for nation's first direct air capture demonstrations in Texas and Louisiana, starting a critical new industry, removing historic climate-harming carbon emissions out of the air, and creating 4,800 jobs.

Together, these projects are expected to remove more than 2 million metric tons of carbon dioxide (CO2) emissions each year from the atmosphere, an amount equivalent to the annual emissions from roughly 445,00 gasoline-powered cars.

South Texas DAC Hub:  Occidental Petroleum Corp OXY subsidiary 1PointFive, has been selected to receive a grant from the U.S. Department of Energy's Office of Clean Energy Demonstrations (OCED) for the development of its South Texas Direct Air Capture (DAC) Hub.

The hub will house the first DAC plant in the world, which can remove up to 1 million metric tons of CO2 annually, and will be situated on the King Ranch in Kleberg County.

The selection enables 1PointFive to enter award negotiations with OCED and work in partnership to establish the South Texas DAC Hub.

With the aid of OCED funds, 1PointFive will be able to advance planning, detailed design, environmental permitting, and the purchase of long-lead equipment for the DAC Hub.

"We believe this selection validates our readiness, technical maturity and the ability to use Oxy's expertise in large projects and carbon management to move the technology forward so it can reach its full potential," commented President and CEO Vicki Hollub.

1PointFive's lease agreement for the South Texas DAC Hub with King Ranch covers ~106,000 acres of pore space estimated to accommodate up to 3 billion metric tons of CO2 in saline formations.

It is anticipated that the DAC factory at the South Texas DAC Hub will generate about 2,500 jobs in the construction, operations, and maintenance industries.

Project Cypress (Calcasieu Parish, LA): Battelle, in coordination with Climeworks Corporation and Heirloom Carbon Technologies, Inc., intends to capture more than 1 million metric tons of existing CO2 from the atmosphere each year and store it permanently deep underground. 

Price Action: OXY shares are trading higher by 1.22% at $64.55 on the last check Friday.