Occidental and 1PointFive Agree to Evaluate Joint Venture to Develop South Texas Direct Air Capture Hub
OXY
Published on 05/16/2025 at 10:35
Occidental and its subsidiary 1PointFive announced an agreement with XRG, ADNOC's investment company, to evaluate a potential joint venture to develop a Direct Air Capture (DAC) facility in South Texas. As part of the joint venture, XRG will consider investing up to $500 million for the development of a DAC facility designed to capture 500,000 tonnes of carbon dioxide per year. The Strategic DAC Framework Agreement was signed by Occidental President and CEO Vicki Hollub and ADNOC Group CEO Dr. Sultan Ahmed Al Jaber, during U.S. President Donald J. Trump's state visit to the United Arab Emirates.
The announcement follows several significant milestones in the development of DAC, including Occidental's progress on STRATOS, its first DAC facility in West Texas, which is on-track to start commercial operations in 2025; further de-risking of Occidental's DAC technology; and an award from the U.S. Department of Energy for up to $650 million to support development of the South Texas DAC Hub. Occidental and ADNOC have been discussing opportunities to collaborate on carbon capture, utilization and storage projects in the United States and UAE since signing a memorandum of understanding in 2023. The South Texas DAC Hub, located on the King Ranch in Kleberg County, Texas, will be close to industrial facilities and energy infrastructure along the U.S. Gulf Coast, where CO2 can be transported for use or securely stored in geologic formations.
The site comprises approximately 165 square miles of acreage with the potential to store up to 3 billion tonnes of carbon dioxide (CO2). The first DAC facility at the Hub is expected to capture 500,000 tonnes the carbon dioxide per year and is currently in front-engineering and design. XRG focuses on transformational global investments that create value across natural gas, chemicals and lower-carbon energy solutions.
words such as "believe," "will," " may," "expect," or similar expressions that convey the prospective nature of events or outcomes are generally indicative of forward-looking statements. 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 and 1PointFive's ability to access necessary technology, to develop and employ existing or new technology on a commercial scale, 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 the agreement's benefits and related impact on carbon emissions and Occidental's and 1Point five's deployment and use of 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 sec.gov.