Redshaw advisors ltd logo
Subscribe

Occidental Petroleum Unveils Ambitious Clean Energy Transition Plans

Occidental Petroleum (OXY.N) has revealed its strategic initiatives to advance its clean energy transition business, which includes significant investments in carbon capture. The company plans to allocate between US$800 million and US$1 billion to construct a facility aimed at removing 1 million metric tons (1mT) of CO2 from the atmosphere annually. The project, scheduled to commence construction in the second half of this year in the Permian Basin, the largest oilfield in the United States, is expected to begin operations in 2024.

Notably, this initiative stands out as it is 100 times larger in scale compared to all 19 currently operational direct air capture (DAC) plants worldwide.

In a recent development, Airbus announced a long-term contract to purchase carbon credits from the reference case plant. Occidental Petroleum has further outlined its plans to establish three carbon sequestration hubs, scheduled to become operational by 2025, and an additional 69 smaller DAC facilities by 2035. The company's executives have refrained from providing specific details on when the low-carbon division is anticipated to become profitable, as large-scale commercial viability for DAC is not yet realized.

These ambitious endeavors underscore Occidental Petroleum's commitment to embracing clean energy technologies and carbon capture, positioning the company as a key player in the transition towards a more sustainable future.


Share this:

More Insights

Sipping container on the sea

5 things shipping companies must do to prepare for the inclusion of maritime in the ETS

From 1 January 2024, the European Union’s Emissions Trading System (EU ETS) was extended to cover ships over 5000 GT transporting within the European Economic […]
Read More
shipping container port

Shipping and the EU ETS: Who, what, why and when?

The European Union’s Emissions Trading Scheme (EU ETS) is setting a course towards a greener future for one of the oldest modes of transport - […]
Read More
Hot liquid oil

Steel sector concerns remain post CBAM implementation

The steel sector’s concerns regarding the implementation of the transitional phase of the European Union's Carbon Border Adjustment Mechanism (CBAM) remain intact, one month after […]
Read More
1 2 3 42
All Insights

Subscribe to the
WeeklyRed

Stay ahead with our WeeklyRed  - your go-to source for comprehensive, insightful updates on global compliance and voluntary markets as well as renewable energy.
Every Monday, fresh into your inbox.
Subscribe
2024 Redshaw Advisors Ltd. All rights reserved.
crossarrow-right