1PointFive, a subsidiary of Occidental, announced that its Bluebonnet and Magnolia Sequestration Hubs have been awarded $36 million in funding from the U.S. Department of Energy (DOE). The amount is part of the third phase of the CarbonSAFE Initiative.
This investment will accelerate the development of the company’s carbon dioxide (CO2) sequestration hubs, which are designed to reduce emissions from industrial sources and advance efforts in industrial decarbonization.
“We are using our over 50 years of carbon management expertise and experience developing projects at scale to deliver a proven solution that helps advance industrial decarbonization,” said Jeff Alvarez, President of 1PointFive Sequestration. “Working in partnership with the Department of Energy supports our ability to rapidly progress our hubs and realize the potential of CCS to further climate goals.”
The Bluebonnet Sequestration Hub, located in Chambers County, Texas, and the Magnolia Sequestration Hub, in Allen Parish, Louisiana, are ideally positioned for large-scale geologic CO2 storage.
The expected business model here is not only to sequester CO2 from 1PointFive’s direct air capture projects but also from partners and clients who use point source capture.
Both hubs are located near significant industrial emissions sources, making them well-suited to support the capture, transport, and storage of carbon dioxide. By integrating pore space, UIC Class VI sequestration permits, and supporting infrastructure, these hubs will play a crucial role in helping industries achieve their climate objectives and reduce carbon footprints.
This funding marks a significant milestone in the development of carbon capture and sequestration (CCS) technologies, offering a scalable solution to help meet the growing demand for industrial decarbonization.
1PointFive locks in $500 million DOE funding
This funding announcement follows a recent $500 million financial package from the DOE aimed at supporting the development of 1PointFive’s South Texas Direct Air Capture (DAC) Hub, a large-scale project that will host a DAC facility with an initial removal capacity of 500,000 metric tons of CO2 per year.
In the future the award might be increased up to $650 million, a boost that would support the site’s expansion into a regional carbon network in South Texas.
According to project developers, the DAC site has the capacity to grow to up to 30 million metric tons of carbon removed annually, with the possibility to store up to 3 billion metric tons of CO2 in saline formations.
Read more: Occidental’s 1PointFive Locks In Up To $500M Funding From Department Of Energy
