Permian basin carbon capture plant to cost $1 billion

$1-billion by the numbers - ABC7 San Francisco

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.