Occidental subsidiary 1PointFive was awarded funding from the US Department of Energy’s Office of Clean Energy Demonstrations (OCED) to support development of the South Texas Direct Air Capture (DAC) Hub (OGJ Online, Aug. 11, 2023).
The funding will be provided in multiple tranches, Occidental said in a release Sept. 12. An initial $50 million will advance 1PointFive’s ongoing work. Upcoming activities include engineering, permitting, procurement of long-lead equipment, and continued community engagement to further 1PointFive’s community benefits plan, the company said.
The total award value for the South Texas DAC Hub is expected to be up to $500 million for the initial DAC plant at the site, and potentially increased up to $650 million for development of an expanded regional carbon network in South Texas, Occidental continued.
1PointFive’s South Texas DAC Hub, on the King Ranch in Kleberg County, Tex., will host a DAC plant with an initial removal capacity of 500,000 tonnes/year (tpy) of CO2 with a plan to develop a build-out to over 1 million tpy in the future (OGJ Online, Nov. 1, 2022). The site has the capacity to expand up to 30 million tpy of CO2 removal through DAC and store up to 3 billion tonnes of CO2 in saline formations.
