BlackRock to Invest $550 Million in Occidental's DAC Project in Texas -- OPIS
09 November 2023 - 4:11AM
Dow Jones News
BlackRock will invest $550 million in a large direct air capture
project being built in Texas by Occidental Petroleum subsidiary
1PointFive, the companies said late Tuesday.
The Stratos plant is designed to capture up to 500,000 metric
tons of carbon dioxide per year, with a potential to increase that
capacity to 1 million mt/year.
The Permian Basin facility is scheduled to become operational in
mid-2025.
The companies have agreed to form a joint venture to develop the
project, with BlackRock investing through a fund managed by its
infrastructure business.
"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,"
Occidental President and Chief Executive Vicki Hollub said in a
news release.
She said BlackRock's expertise across global markets and
industries makes the company "the ideal partner" to help further
industrial-scale DAC deployment.
Larry Fink, chairman and chief executive of BlackRock, said the
project represents an "incredible investment opportunity" for its
clients.
The announcement came just days after Canada's TD Bank Group
said it had agreed to buy 27,500 CO2 removal credits over four
years from the Texas project.
Amazon, Airbus and All Nippon Airways have also signed advance
purchase deals with 1PointFive.
The plant will deploy technology developed by Canadian DAC
company Carbon Engineering, which is being acquired by Occidental
for $1.1 billion.
The Texas facility is one of dozens of large-scale DAC plants
Occidental intends to build worldwide by 2035.
This content was created by Oil Price Information Service, which
is operated by Dow Jones & Co. OPIS is run independently from
Dow Jones Newswires and The Wall Street Journal.
--Reporting by Abdul Latheef, alatheef@opisnet.com; Editing by
Michael Kelly, mkelly@opisnet.com
(END) Dow Jones Newswires
November 08, 2023 11:56 ET (16:56 GMT)
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