HOUSTON, Aug. 11, 2023 (GLOBE NEWSWIRE) -- 1PointFive, a wholly owned subsidiary of Occidental, announced today it was 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, to be located on the King Ranch in Kleberg County, is expected to include the world’s first DAC plant designed to remove up to 1 million metric tons of CO₂ per year.

The selection enables 1PointFive to enter award negotiations with OCED and work in partnership to establish the South Texas DAC Hub. OCED funding will support 1PointFive’s development of the DAC Hub through the advancement of planning, detailed design, environmental permitting and procurement of long-lead equipment.

“We appreciate the U.S. Department of Energy’s leadership to advance Direct Air Capture and look forward to our partnership to deploy this vital carbon removal technology at climate-relevant scale and establish the United States and 1PointFive as global leaders in demonstrating the commercial viability of DAC,” said President and CEO Vicki Hollub. “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.”

1PointFive’s lease agreement for the South Texas DAC Hub with King Ranch covers approximately 106,000 acres of pore space estimated to accommodate up to 3 billion metric tons of CO₂ in saline formations. 1PointFive estimates that the Hub has the potential to remove and store up to 30 million metric tons of CO₂ per year through DAC. The property is located near industrial emitters on the Texas Gulf Coast, where CO₂ also can be captured, transported and securely sequestered at the Hub.

1PointFive, along with its partners Carbon Engineering and Worley, is working on the front-end engineering and design for the first DAC plant slated for the South Texas Hub. The design is being adapted from Stratos, 1PointFive’s first commercial-scale DAC plant under construction in the Permian Basin. Preparations are underway to drill test wells at the South Texas Hub site to gather geologic data required to obtain a Class VI well permit to safely sequester CO₂.

1PointFive will also establish programs to serve the local communities under its Community Benefits Plan, which promotes local hiring, workforce development opportunities, educational initiatives and community engagement and investment to further support equity, justice and quality job creation in the region. The first DAC plant at the South Texas DAC Hub is expected to create approximately 2,500 jobs in construction, operations and maintenance.

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 1PointFive

1PointFive 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.

AIR TO FUELS™ is a registered trademark of Carbon Engineering Ltd.

About the Office of Clean Energy Demonstrations

The U.S. Department of Energy’s Office of Clean Energy Demonstrations (OCED) was established to accelerate clean energy technologies and fill a critical innovation gap on the path to achieving our nation’s climate goals of net zero emissions by 2050. OCED’s mission is to deliver clean energy demonstration projects at scale in partnership with the private sector to accelerate deployment, market adoption, and the equitable transition to a decarbonized energy system. Visit energy.gov/oced to learn more.

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 the DOE funding’s benefits and related impact on carbon emissions, Occidental’s and 1PointFive’s deployment and use of DAC technology and project-related community benefits, 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 and 1PointFive’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 and 1PointFive’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.