Occidental Petroleum Corp. subsidiary 1PointFive has formed a joint venture with BlackRock to develop Stratos, the world’s largest direct air capture (DAC) plant.
The private equity firm has committed $550 million for development of the project in Ector County, Tex. While no details on an ownership split or future commitments were provided, the partnership amounts to about half of the Permian basin-area project’s total upfront capex of about $1.3 billion.
For full-year 2023, Oxy expects its low-carbon spending to be near the high end of its $600 million guidance, and to continue around $600 million through 2026 compared with previous guidance of $500-600 million through 2025, Jefferies analysts said in a research note Nov. 7.
Stratos is designed to capture up to 500,000 tonnes/year (tpy) of CO2. With construction about 30% complete, the DAC plant is expected to be commercially operational in mid-2025.