1PointFive to Develop Massive CO2 Removal Facility with $500M DOE Grant

1PointFive, a subsidiary of Occidental, has secured up to $500 million in funding from the U.S. Department of Energy (DOE) to develop a Direct Air Capture (DAC) facility in South Texas. This project aims to scale carbon removal technology to new heights, starting with an initial capacity to capture 500,000 metric tons of CO2 annually, with plans to expand to 30 million tons in the long term.

The funding, awarded through the Office of Clean Energy Demonstrations, begins with an initial $50 million to cover early-stage activities, including engineering, permitting, and community engagement. The project, located on the King Ranch in Kleberg County, Texas, is set to boost local employment and support workforce development in the region through a Community Benefits Plan.

Vicki Hollub, President and CEO of Occidental, highlighted the significance of large-scale DAC technology in achieving net-zero goals, calling it “one of the most important technologies” for addressing climate change. The South Texas DAC Hub is poised to become a key player in the U.S. carbon management strategy, with potential to capture and store billions of metric tons of CO2 in underground saline formations over time.

The DOE’s backing of the project reflects the government’s growing commitment to innovative carbon removal solutions and strengthens 1PointFive’s leadership in this emerging field.