Occidental Petroleum Corp.’s planned carbon removal facility in the Permian Basin will carry an estimated $1 billion price tag.
It’s what the company informed investors this week, saying the cost will be about $800 million to $1 billion. Construction is expected to begin in the second half of the year. The nearly $1 billion cost is the first amount to be disclosed by company leadership.
Occidental and one of its subsidiaries, Oxy Low Carbon Ventures LLC along with a private equity firm created 1PointFive, a development company two years ago. The plant is intended to pull carbon dioxide from the atmosphere.
Occidental executives told investors they are hoping for a startup of operations in late 2024. They explained an engineering study is still underway.
They said the $1 billion estimated cost includes “pre-investment for future DACs.” DAC stands for direct air capture.