Apr 08, 2025 (MarketLine via COMTEX) --
The permits allows Occidental to use its expertise managing large quantities of COaee, while advancing technology that strengthens US energy security.
Occidental Petroleum (Occidental) and its subsidiary 1PointFive have secured Class VI permits from the US Environmental Protection Agency for the STRATOS direct air capture (DAC) facility in Ector County, Texas.
This milestone allows Occidental to sequester carbon dioxide (CO2) from the world's largest DAC project, enhancing the US' energy security and economic growth in Texas.
The permits, issued under the Safe Drinking Water Act's Underground Injection Control programme, are crucial for Occidental's plan to securely store CO2 captured from the atmosphere.
Occidental demonstrated compliance with federal and state requirements for injection wells storing CO2 in geologic formations more than one mile underground.
Occidental Petroleum president and chief executive officer Vicki Hollub said: aEURoeThis is a significant milestone for the company as we are continuing to develop vital infrastructure that will help the United States achieve energy security.
aEURoeThe permits are a catalyst to unlock value from carbon dioxide and advance direct air capture technology as a solution to help organisations address their emissions or produce vital resources and fuels.aEUR
STRATOS is designed to capture up to 500,000 tonnes of CO2 annually, with commercial operations expected to commence in 2025.
This project underscores Occidental's commitment to leveraging its expertise in managing large quantities of CO2.
In other developments, Occidental Petroleum reported lower realised prices for oil and gas production in the third quarter of 2024.
Oil output prices dropped nearly 6%, while US natural gas output prices fell by 26%.
The company attributed the decline to concerns over global oil demand growth during the JulyaEUR"September quarter.
Additionally, CrownRock Holdings is seeking to raise up to $1.7bn by selling its stake in Occidental Petroleum.
The sale involves 29.6 million shares, received as part of a $12bn deal with Occidental.
The shares are offered at a discount of up to 1.2% from OccidentalaEUR(TM)s closing price on 12 August, with JPMorgan Chase, Morgan Stanley and the Royal Bank of Canada as underwriters.
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