Occidental (NYSE: OXY) and its subsidiary 1PointFive today
announced they plan to begin detailed engineering and early site
construction for their first large-scale Direct Air Capture (DAC)
plant in Ector County, Texas, near Oxy’s portfolio of acreage and
infrastructure that are conducive to safe and secure storage of
carbon dioxide.
The first stage of construction, which includes site preparation
and road work, is scheduled to begin in the third quarter of 2022
and start-up is expected in late 2024. Upon completion, the first
DAC plant will be the world’s largest of its kind and would be an
important step in advancing Oxy’s low-carbon strategy to deliver
large-scale carbon management solutions that accelerate a net-zero
economy. Once operational, the plant is expected to capture up to
500,000 metric tons of carbon dioxide per year with the capability
to scale up to 1 million metric tons per year. 1PointFive has
announced a scenario to deploy 70 DAC facilities worldwide by 2035
under current compliance and market scenarios.
The decision to proceed with construction follows the successful
completion of a Front-End Engineering and Design (FEED) study and
extensive testing and validation at the Carbon Engineering
Innovation Centre. 1PointFive partnered with Carbon Engineering, a
climate solutions company, to commercialize and deploy DAC
technology at scale. 1PointFive has also agreed on substantive
terms with Worley for engineering, procurement, and construction
(EPC) services, and expects to work toward a definitive agreement
for the EPC contract by the end of the year.
1PointFive and Carbon Engineering continue to progress
innovation workstreams to improve the DAC technology at the
Innovation Centre. The focus is on carbon capture and energy
efficiency, as well as operating cost improvements during the life
of the plant.
“The construction of Oxy’s first DAC plant is an important
milestone on the pathway to achieving our net-zero ambitions and
helping the world meet the Paris Agreement’s climate goals,” said
Vicki Hollub, President and CEO, Oxy. “We are fortunate to partner
with Carbon Engineering and Worley, who share our vision in
creating a carbon removal industry that can accelerate the path to
net zero.”
“Construction of this transformative facility begins our journey
toward providing commercial-scale DAC solutions that reduce and
remove carbon emissions,” said Richard Jackson, President, U.S.
Onshore Resources and Carbon Management, Operations, Oxy. “This
plant’s development is rooted in our carbon management expertise,
strong record of delivering major projects and existing
infrastructure that supports the commercialization of carbon
capture, utilization and storage technologies. This plant could
also anchor future low carbon projects and strengthen our portfolio
of carbon management solutions.”
“Carbon Engineering has been innovating for more than a decade
to deliver climate solutions at megaton scale,” said Daniel
Friedmann, CEO, Carbon Engineering. “Now, with construction
starting on this first, large-scale facility, we are seeing our
vision become a reality. In collaboration with our partners at
1PointFive and Oxy, today marks a pivotal moment in the deployment
of Carbon Engineering’s large-scale Direct Air Capture
solutions.”
The plant is expected to provide cost-effective solutions that
hard-to-decarbonize industries can use in conjunction with their
own emissions reduction programs to help achieve net zero. Captured
carbon dioxide can be safely sequestered deep underground in saline
formations or used in the production of hydrocarbons to enable
lower-carbon or net-zero transportation fuels, and in products like
chemicals and building materials.
1PointFive has advanced product sales for the plant, including
carbon removal credit purchases from Airbus, Shopify and
ThermoFisher, and Oxy reached an offtake agreement with SK Trading
International for an opportunity to purchase net-zero oil.
Oxy also entered into an agreement with Origis Energy to provide
zero-emission solar power for the DAC plant and other projects in
the Permian Basin.
The project is expected to employ more than 1,000 people during
the construction phase and up to 75 once operational. The Inflation
Reduction Act’s increased incentives will further accelerate DAC
deployment as a solution to help achieve net zero.
About Occidental Occidental is
an international energy company with assets primarily in the United
States, the Middle East and North Africa. We are one of the largest
oil producers in the U.S., including a leading producer in the
Permian and DJ basins, and offshore Gulf of Mexico. Our midstream
and marketing segment provides flow assurance and maximizes the
value of our oil and gas. Our chemical subsidiary OxyChem
manufactures the building blocks for life-enhancing products. Our
Oxy Low Carbon Ventures subsidiary is advancing leading-edge
technologies and business solutions that economically grow our
business while reducing emissions. We are committed to using our
global leadership in carbon management to advance a lower-carbon
world. Visit oxy.com for more information.
About 1PointFive1PointFive is a Carbon Capture,
Utilization and Sequestration (CCUS) platform that is working to
help curb global temperature rise to 1.5°C by 2050 through the
deployment of decarbonization solutions, including Carbon
Engineering's Direct Air Capture (DAC) and AIR TO FUELS™
technologies alongside geologic sequestration hubs. More at
1PointFive.com.
About Carbon EngineeringCarbon Engineering (CE)
is a climate solutions company. CE is focused on the global
deployment of large-scale Direct Air Capture (DAC) technology that
captures carbon dioxide out of the atmosphere so it can be
permanently stored deep underground or used to produce clean,
affordable transportation fuels. With its partners, CE is working
to deploy large-scale, commercial DAC facilities in multiple
markets around the globe. More at carbonengineering.com.
AIR TO FUELS™ is a registered trademark of Carbon Engineering
Ltd.
Forward-Looking Statements
This news release contains “forward-looking statements” within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, including those relating
to Occidental’s deployment and use of DAC technology as part of its
net-zero strategy, which are based on Occidental’s current
expectations, beliefs, plans, estimates, and forecasts. All
statements other than statements of historical fact are
forward-looking statements for purposes of federal and state
securities laws. Words such as “will,” “may,” “expect,” “plan,” or
similar expressions that convey the prospective nature of events or
outcomes are generally indicative of forward-looking statements.
You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this news release.
Unless legally required, Occidental does not undertake any
obligation to update, modify, or withdraw any forward-looking
statements as a result of new information, future events, or
otherwise.
These statements are not guarantees of future performance as
they involve assumptions that may prove to be incorrect and risks
and uncertainties, including those that are beyond Occidental’s
control. Factors that may cause actual results to differ materially
from forward-looking statements include Occidental’s ability to
access necessary technology, to develop and employ existing or new
technology on a commercial scale, to access capital, to collaborate
with third parties and customers, and to receive approvals from
regulatory bodies, as well as market conditions, geopolitical
events, and scientific developments. Additional factors that may
affect Occidental’s ability to deploy DAC technology can be found
in Occidental’s public disclosure and its filings with the U.S.
Securities and Exchange Commission (SEC), which may be accessed at
Occidental’s website at oxy.com or the SEC’s website at sec.gov.
Information included herein is not necessarily material to an
investor in Occidental’s securities.
Contacts
Media |
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Investors |
Eric
Moses713-497-2017eric_moses@oxy.com |
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Jeff
Alvarez713-215-7864jeff_alvarez@oxy.com |
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