Occidental’s Texas direct air capture hub awarded up to $500M in DoE funding

Occidental Petroleum (NYSE:OXY) said Thursday its 1PointFive subsidiary was awarded up to $500M in funding by the U.S. Department of Energy’s Office of Clean Energy Demonstrations to support the development of the South Texas Direct Air Capture Hub.

Occidental (OXY) said the initial $50M award will advance 1PointFive’s ongoing work at the South Texas DAC Hub, including engineering, permitting, the procurement of long-lead equipment, and continued community engagement.

The total award value for the South Texas DAC Hub is expected to be up to $500M for the initial DAC facility at the site, and potentially increased to as much as $650M for the development of an expanded regional carbon network in south Texas.

The South Texas Direct Air Capture Hub is planned to contain a DAC facility with an initial removal capacity of 500K metric tons of carbon dioxide year with a plan to develop a buildout to more than 1M metric tons/year in the future.

Occidental (OXY) said the site has the capacity to expand up to 30M metric tons/year of carbon dioxide removal through DAC and securely store up to 3B metric tons of CO2 in saline formations.