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Houston energy giant makes moves on emissions with Astros deal, new tech in the Permian Basin

Oxy's Permian Basin carbon capture project has a news partner and the Astros are thinking about their climate goals. Rendering via 1pointfive.com

Houston-based energy company Occidental is capturing a ton of attention with its carbon capture initiative.

Occidental’s carbon capture subsidiary, 1PointFive, recently said it’s developing a carbon capture and sequestration hub on a 55,000-acre site along the Gulf Coast in Southeast Texas. The hub will be able to hold about 1.2 billion metric tons of carbon dioxide.

The Bluebonnet Hub, expected to be operating in 2026, will be located in Chambers, Liberty, and Jefferson counties near coastal refineries, chemical plants, and manufacturing facilities. Chambers County is the Houston metro area.

“This hub is located between two of the largest industrial corridors in Texas so captured CO2 can be efficiently transported and safely sequestered,” says Jeff Alvarez, president of sequestration at 1PointFive. “Rather than starting from scratch with individual capture and sequestration projects, companies can plug into this hub for access to shared carbon infrastructure.”

Home run on emissions

Another development at 1PointFive involves the Houston Astros baseball team.

The Astros recently agreed to buy CO2 removal credits from 1PointFive’s carbon capture plant being built in Ector County, whose county seat is Odessa. Under this deal, CO2 captured by the company’s equipment will be sequestered in underground saline reservoirs that aren’t affiliated with oil and gas production.

Over the next three years, the Astros will use the removal credits to help the team achieve a carbon-neutral footprint at Minute Maid Park.

“We remain committed to continuous improvement of our stadium for our fans, and purchasing carbon removal credits is an important investment for us,” Marcel Braithwaite, senior vice president of business operations for the Astros, says in a news release.

Progress in the Permian Basin

Furthermore, 1PointFive is making progress on its carbon capture plant being developed in West Texas’ Permian Basin. The company recently tapped Orlando, Florida-based Siemens Energy to supply two compressors for the plant, which is set to capture more than 500,000 metric tons of CO2 per year.

Vicki Hollub, president and CEO of Occidental, says in a news release that the Permian Basin plant will help meet the Paris Agreement’s Paris climate change goals and reduce global emissions.

The Permian Basin facility, with an estimated price tag of $800 million to $1 billion, is on track to open by late 2024.

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This article originally ran on InnovationMap.

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A View From HETI

Texas legislators carved out $715 million for nuclear, semiconductor and other economic development projects in the 2025 session. Photo via Getty Images

The Greater Houston Partnership is touting a number of victories during the recently concluded Texas legislative session that will or could benefit the Houston area. They range from millions of dollars for energy projects to billions of dollars for dementia research.

“These wins were only possible through deep collaboration, among our coalition partners, elected officials, business and community leaders, and the engaged members of the Partnership,” according to a partnership blog post. “Together, we’ve demonstrated how a united voice for Houston helps drive results that benefit all Texans.”

In terms of business innovation, legislators carved out $715 million for nuclear, semiconductor, and other economic development projects, and a potential $1 billion pool of tax incentives through 2029 to support research-and-development projects. The partnership said these investments “position Houston and Texas for long-term growth.”

"Nuclear power renaissance"

House Bill 14 (HB 14), for instance, aims to lead a “nuclear power renaissance in the United States,” according to Texas Gov. Greg Abbott’s office. HB 14 establishes the Texas Advanced Nuclear Energy Office, and allocates $350 million for nuclear development and deployment. Two nuclear power plants currently operate in Texas, generating 10 percent of the energy that feeds the Electric Reliability Council Texas (ERCOT) power grid.

“This initiative will also strengthen Texas’ nuclear manufacturing capacity, rebuild a domestic fuel cycle supply chain, and train the future nuclear workforce,” Abbott said in a news release earlier this year.

One of the beneficiaries of Texas’ nuclear push could be Washington, D.C.-based Last Energy, which plans to build 30 micro-nuclear reactors near Abilene to serve power-gobbling data centers across the state. Houston-based Pelican Energy Partners also might be able to take advantage of the legislation after raising a $450 million fund to invest in companies that supply nuclear energy services and equipment.

Reed Clay, president of the Texas Nuclear Alliance, called this legislation “the most important nuclear development program of any state.”

“It is a giant leap forward for Texas and the United States, whose nuclear program was all but dead for decades,” said Clay. “With the passage of HB 14 and associated legislation, Texas is now positioned to lead a nuclear renaissance that is rightly seen as imperative for the energy security and national security of the United States.”

Infrastructure

In the infrastructure arena, state lawmakers:

  • Approved $265 million for Houston-area water and flood mitigation projects, including $100 million for the Lynchburg Pump Station.
  • Created the Lake Houston Dredging and Maintenance District.
  • Established a fund for the Gulf Coast Protection District to supply $550 million for projects to make the coastline and ship channel more resilient.

Dementia institute

One of the biggest legislative wins cited by the Greater Houston Partnership was passage of legislation sponsored by Sen. Joan Huffman, a Houston Republican, to provide $3 billion in funding over 10 years for the Dementia Prevention and Research Institute of Texas. Voters will be asked in November to vote on a ballot initiative that would set aside $3 billion for the new institute.

The dementia institute would be structured much like the Cancer Prevention and Research Institute of Texas (CPRIT), a state agency that provides funding for cancer research in the Lone Star State. Since its founding in 2008, CPRIT has awarded nearly $3.9 billion in research grants.

“By establishing the Dementia Prevention and Research Institute of Texas, we are positioning our state to lead the charge against one of the most devastating health challenges of our time,” Huffman said. “With $3 billion in funding over the next decade, we will drive critical research, develop new strategies for prevention and treatment, and support our healthcare community. Now, it’s up to voters to ensure this initiative moves forward.”

More than 500,000 Texans suffer from some form of dementia, including Alzheimer’s disease, according to Lt. Gov. Dan Patrick.

“With a steadfast commitment, Texas has the potential to become a world leader in combating [dementia] through the search for effective treatments and, ultimately, a cure,” Patrick said.

Funding for education

In the K-12 sector, lawmakers earmarked an extra $195 million for Houston ISD, $126.7 million for Cypress-Fairbanks ISD, $103.1 million for Katy ISD, $80.6 million for Fort Bend ISD, and $61 million for Aldine ISD, the partnership said.

In higher education, legislators allocated:

  • $1.17 billion for the University of Houston College of Medicine, University of Texas Health Science Center at Houston, UT MD Anderson Cancer Center, and Baylor College of Medicine.
  • $922 million for the University of Houston System.
  • $167 million for Texas Southern University.
  • $10 million for the Center for Biotechnology at San Jacinto College.

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