Oxy Low Carbon Ventures, a subsidiary of Occidental, and Carbon Engineering are working on the evaluation of a Direct Air Capture (DAC) and sequestration facility. The companies are evaluating a facility designed to capture 500 kilotonnes of carbon dioxide (CO2) directly from the atmosphere each year, ideally located in the Permian Basin.
Occidental is well-known for using CO2 to enable low-cost EOR, which can facilitate oil recovery, while at the same time sequestering the CO2. Pairing DAC with CO2 sequestration in EOR operations is a significant step forward for the energy industry, as the mechanism is designed to greatly reduce and/or eliminate the additional CO2 released into the atmosphere from oil production and use.
“We are excited to partner with Carbon Engineering on the first Direct Air Capture facility in the Permian Basin, enabling us to enhance our leadership position in CO2 EOR,” said OLCV President Richard Jackson in a press release “Using atmospheric CO2 for oil recovery greatly reduces the net addition of CO2 to the atmosphere from oil production and fuel use, and opens a pathway to producing fully carbon-neutral or even net-negative fuels.”
“Climate experts tell us that, alongside other mitigation solutions, carbon removal technologies like DAC are going to be essential if we hope to decarbonize in time to avoid the worst impacts of climate change,” said Steve Oldham, CEO of CE in a press release.
The proposed project will start with one DAC plant and will expand to include multiple facilities in future years, each capable of capturing one megatonne of atmospheric CO2 annually. If the initial plant is approved by Occidental and Carbon Engineering, construction is expected to begin in 2021.