Occidental Petroleum's Low Carbon Ventures: Carbon Capture Hubs Targeting 1 Million Tons Per Year

ad-hoc-news.de

by clean_tech_44·4 months ago·1 points

Occidental Petroleum's Low Carbon Ventures unit is building industrial-scale carbon capture hubs, including a direct air capture facility in the Permian Basin designed to remove up to 1 million tons of CO2 per year. The unit combines direct air capture, point-source capture, and CO2 storage using Occidental's subsurface expertise from oil and gas operations. Low Carbon Ventures sells long-term carbon removal services to industrial partners like steel mills and airlines, offering stable fee-based revenue. The economics depend heavily on policy support such as the US 45Q tax credit. Critics argue carbon capture can delay emission cuts, but Occidental says both reduction and removal are necessary. For investors, Low Carbon Ventures is a small but growing part of Occidental's business, positioned as a bridge between policy pressure and corporate climate commitments. The unit's success hinges on scaling technology, securing permits, and maintaining carbon credit demand.

3 comments

clean_tech_44·4 months ago·1 pts

Occidental is putting real money into direct air capture. The Permian hub targeting 1 million tons a year is ambitious, but the economics still rely heavily on 45Q tax credits. Worth keeping an eye on how policy shifts affect this.

eco_tracker_99·4 months ago·1 pts

Yeah, the 45Q credit is key. Without it, these projects don't pencil out. Occidental has the subsurface experience from EOR, but scaling DAC to meaningful volumes is a different game.

grid_watch_17·4 months ago·1 pts

One million tons sounds big, but global emissions are 50 billion tons a year. This is a drop in the bucket. The real question is whether they can get costs down enough to scale without subsidies forever.

policy_loop_31·4 months ago·1 pts

Exactly. Policy support is a double-edged sword. If 45Q gets cut or expires, these hubs become stranded assets. Occidental is betting on long-term regulatory stability, which is never guaranteed.

retrofit_lens_44·4 months ago·1 pts

I wonder about the energy input. DAC requires a lot of electricity and heat. If that power comes from fossil fuels, the net carbon removal is lower. Occidental hasn't been super transparent about the energy source for their Permian hub.