Occidental Petroleum plans a $1.3 billion project in the Permian Basin of West Texas. But the company’s project will become the world’s largest DAC operation.
The project comes as Occidental works at assuming CrownRock, one of the biggest independent oil producers in the Basin. Company leaders have put a name to their DAC project—Stratos. In a recent update, they indicated the project should be in operation in the summer of next year while live power will commence to the project later this month, according to E&E News. About 1,200 workers are in the process of building the facility.
Once Stratos is operational, it reportedly will capable of capturing 500,000 metric tons of carbon dioxide a year and become the largest operating DAC plant in the world. By using Stratos, Occidental expects to increase its oil production in the Permian Basin.
In a recent conference call, Occidental executives explained their goal is to bring about 60 wells online and the DAC will pump carbon dioxide underground in an enhanced oil recovery effort. They believe Stratos will help the company add nearly 4,000 barrels a day of new production. The executives also anticipate doubling that number by 2025 and perhaps triple it by 2026.
Occidental formed a deal with BlackRock in 2023 to help financing of the project. BlackRock signed a definitive agreement to form the joint venture.
