Occidental and BlackRock Form Joint Venture to Develop STRATOS, the World’s Largest Direct Air Capture Plant
08 November 2023 - 8:20AM
Occidental (NYSE: OXY) announced today that BlackRock (NYSE: BLK)
will invest $550 million on behalf of clients in the development of
STRATOS, the world’s largest Direct Air Capture (DAC) facility, in
Ector County, Texas. Through a fund managed by its Diversified
Infrastructure business, BlackRock has signed a definitive
agreement to form a joint venture with Occidental through its
subsidiary 1PointFive that will own STRATOS.
STRATOS is designed to capture up to 500,000 tonnes of CO2 per
year. Construction activities for STRATOS are approximately 30
percent complete and the facility is expected to be commercially
operational in mid-2025. The project is expected to employ more
than 1,000 people during the construction phase and up to 75 once
operational.
“We are excited to partner with BlackRock on this transformative
facility that will provide a solution to help the world reach net
zero,” said Vicki Hollub, President and CEO, Occidental. “This
joint venture demonstrates that Direct Air Capture is becoming an
investable technology and BlackRock’s commitment in STRATOS
underscores its importance and potential for the world. We believe
that BlackRock’s expertise across global markets and industries
makes them the ideal partner to help further industrial-scale
Direct Air Capture.”
“BlackRock is proud to partner with global energy leader
Occidental to help build the world’s largest direct air carbon
capture facility in Texas,” said Larry Fink, Chairman and CEO,
BlackRock. “Occidental’s technical expertise brings unprecedented
scale to this cutting-edge decarbonization technology. STRATOS
represents an incredible investment opportunity for BlackRock’s
clients to invest in this unique energy infrastructure project and
underscores the critical role of American energy companies in
climate technology innovation.”
DAC is a technology that captures and removes large volumes of
CO₂ directly from the atmosphere, which can be safely and securely
stored deep underground in geologic formations. STRATOS is expected
to provide cost-effective solutions that companies in
hard-to-decarbonize industries can use in conjunction with their
own emissions reduction programs. To date, 1PointFive has signed
CO₂ removal credit purchase agreements with customers, including
Amazon, Airbus, All Nippon Airways (ANA), TD Bank Group, the
Houston Astros, and the Houston Texans.
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 and gas 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) company 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.
About BlackRock
BlackRock’s purpose is to help more and more people experience
financial well-being. As a fiduciary to investors and a leading
provider of financial technology, we help millions of people build
savings that serve them throughout their lives by making investing
easier and more affordable. For additional information on
BlackRock, please visit www.blackrock.com/corporate
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 joint venture’s benefits and related impact on carbon
emissions and Occidental’s and its subsidiaries’ deployment and use
of DAC technology, 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 “believe,” “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 its
subsidiaries’ 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 the joint venture’s benefits and
Occidental’s and its subsidiaries’ ability to deploy DAC technology
can be found in Occidental’s filings with the U.S. Securities and
Exchange Commission (SEC), which may be accessed at the SEC’s
website at sec.gov. Information included herein is not necessarily
material to an investor in Occidental’s securities.
Contacts
Occidental |
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BlackRock |
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Media |
Investors |
Media |
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Eric
Moses713-497-2017eric_moses@oxy.com |
Neil
Backhouse713-552-8811investors@oxy.com |
Christopher
Beattie646-231-8518christopher.beattie@blackrock.com |
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