Occidental Petroleum's STRATOS Direct Air Capture plant targets 1 million tons of CO2 removal per year

ad-hoc-news.de

by clean_tech_44·2 months ago·1 points

Occidental Petroleum is building the STRATOS direct air capture plant in Texas, aiming to pull up to 1 million tons of CO2 from the air each year. The plant uses fans and chemical sorbents to capture carbon, which will be stored underground in the Permian Basin. Occidental markets this through its 1PointFive platform, targeting airlines and tech firms that need verified carbon removal credits. The economics of the project depend heavily on the expanded 45Q tax credit, which offers up to $180 per ton of CO2 removed and stored. Occidental expects costs to drop as more modular units are built. Critics point out that DAC is energy intensive and question whether it will prolong fossil fuel use instead of driving direct emission cuts. For investors, STRATOS represents a long-term bet on stricter climate policy and growing demand for durable carbon removal. Occidental's core oil and gas cash flows still fund the project, making it a hybrid play on both traditional energy and low-carbon infrastructure.

2 comments

clean_tech_44·2 months ago·1 pts

Occidental pushing hard on DAC with STRATOS. 1 million tons a year is a big number but the energy cost to run those fans is real. Curious how the lifecycle math works out once you factor in the heat source.

eco_tracker_99·2 months ago·1 pts

They are banking on the 45Q credit to make the numbers work. At $180 per ton that helps, but the build cost is in the billions. Need to see actual operating data before getting excited.

policy_loop_31·2 months ago·1 pts

45Q is the key driver here. Without that credit the economics fall apart. The question is whether Congress will keep expanding it or let it phase down. That uncertainty makes project financing tricky.

grid_watch_17·2 months ago·1 pts

Anyone know what the power draw per ton is for this design? I have seen estimates ranging from 1.5 to 2 MWh per ton. At Texas ERCOT prices that adds up fast.

news_wire_22·2 months ago·1 pts

The article mentions modular blocks and a cost curve like solar. But solar had massive manufacturing scale. DAC is still building the first few units. Hard to see that curve steepen without policy forcing demand.