Western Oil's (OXY.US) direct air capture center in Texas awarded up to $500 million by the U.S. Department of Energy

Market VisionFriday, Sep 13, 2024 1:50 am ET

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Western Oil (OXY.US) said on Thursday that its subsidiary 1PointFive has received up to $500 million in funding from the U.S. Department of Energy's Office of Clean Energy Demonstrations to support the development of the South Texas Direct Air Capture (DAC) center. Western Oil said the initial $50 million contract will advance 1PointFive's ongoing work at the South Texas DAC center, including engineering, permitting, long-term equipment procurement, and ongoing community engagement.

The total funding value for the South Texas DAC center is expected to be up to $500 million for the initial DAC facilities on-site, and could increase to $650 million for the development of an expanded regional carbon network in South Texas.

The South Texas DAC center plan includes a DAC facility with an initial CO2 removal capacity of 500,000 tons per year, and is planned to develop to over 1 million tons per year in the future.

Western Oil said the base has the ability to expand CO2 removal to 30 million tons per year through DAC, and safely store 3 million tons of CO2 in salt rock formations.

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