fed funds

Houston-based Oxy subsidiary receives $600M in federal funding for carbon capture project

Occidental subsidiary 1PointFive received federal funding to go toward building the South Texas Direct Air Capture Hub. Photo via 1pointfive.com

A subsidiary of Houston-based energy company Occidental has snagged a roughly $600 million federal grant to establish a hub south of Corpus Christi that’ll remove carbon emissions from the air.

The U.S. Department of Energy’s Office of Clean Energy Demonstrations grant, awarded to Occidental subsidiary 1PointFive, will go toward building the South Texas Direct Air Capture (DAC) Hub. It’ll be located on about 106,000 leased acres within a Kleberg County site at the iconic King Ranch. The hub will comprise 30 individual DAC projects.

In a news release, Occidental says the facility will be able to pull at least 1 million metric tons of carbon from the air each year. The hub eventually might remove and store up to 30 million metric tons of CO2 per year, the company says.

The hub initially will create about 2,500 jobs in construction, operations, and maintenance, says Occidental.

Direct air capture removes CO2 from the atmosphere at any location, according to the International Energy Agency. That’s opposed to carbon capture, which generally happens where CO2 is emitted. Either way, the carbon is stored in deep geological formations and used for a variety of purposes, such as making concrete.

In the case of the South Texas hub, carbon dioxide that’s captured and stored will come from industrial sites along the Texas Gulf Coast.

Occidental President and CEO Vicki Hollub says the grant from the U.S. Department of Energy “validates our readiness, technical maturity, and the ability to use Oxy’s expertise in large projects and carbon management to move the technology forward so it can reach its full potential.”

Oxy’s partners in the South Texas project include:

  • Canada-based clean energy company Carbon Engineering
  • Australia-based professional services provider Worley
  • DOE’s Lawrence Livermore National Laboratory in Northern California
  • Livermore Lab Foundation
  • Texas A&M University-Kingsville
  • Coastal Bend Bays & Estuaries Program in Corpus Christi
  • University of Texas at Austin Gulf Coast Carbon Center

The South Texas DAC Hub was one of two DAC projects awarded as much as $1.2 billion in funding August 11 by the Department of Energy (DOE). The other project is Project Cypress, located in Louisiana’s Calcasieu Parish; it received up to $603 million in funding.

In announcing the DAC funding, U.S. Energy Secretary Jennifer Granholm says her agency “is laying the foundation for a direct air capture industry crucial to tackling climate change — transforming local economies and delivering healthier communities along the way.”

The DOE says the Texas and Louisiana projects represent the world’s largest-ever investment in engineered carbon removal. They’re two of the four regional projects that the DOE plans to finance as part of its DAC initiative, supported by $3.5 billion in federal funding aimed at capturing and storing pollution from carbon dioxide.

Just 18 DAC facilities are currently operating across the U.S., Canada, and Europe, according to a 2022 report from the International Energy Agency.

“No matter how fast we decarbonize the nation’s economy, we must tackle the legacy pollution already in our atmosphere to avoid the worst effects of climate change,” Granholm said in 2022.

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A View From HETI

Competing virtually against 145 teams from 34 countries, the students, known as The Dream Team, won third place for their plan to address energy poverty in Egypt and Turkey. Photo courtesy of UH

A student-led team from the University of Houston and Texas A&M University took home top prizes at last month's Switch Energy Alliance Case Competition.

Competing virtually against 145 teams from 34 countries, the students, known as The Dream Team, won third place for their plan to address energy poverty in Egypt and Turkey. They were awarded $5,000 in prize money.

The competition challenges student teams to solve real-world energy problems to "drive progress towards a sustainable and equitable energy future," according to the Switch competition's website.

“The Switch competition tackles major issues that we often don’t think about on a daily basis in the United States, so it is a really interesting and tough challenge to solve,” Sarah Grace Kimberly, a senior finance major at UH and member of the team, said in a statement from the university

Kimberly was joined by Pranjal Sheth, a fellow senior finance major at UH, and Nathan Hazlett, a finance graduate student at TAMU with a bachelor’s degree in petroleum engineering.

The Dream Team developed a 10-year plan to address Egypt and Turkey's energy poverty that would create 200,000 jobs, reduce energy costs and improve energy access in rural areas. Its major components included:

  • Developing rooftop and utility-scale solar farms and solar canopies over irrigation canals
  • Expanding wind power capacity by taking advantage of high wind speeds in the Gulf of Suez and Western Desert
  • Deploying cost-efficient technologies along the Nile for rural electrification

“People in the United States should be extremely thankful for the infrastructure and systems that allow us to thrive with power, food and water,” Sheth said in the statement. “Texas went through Winter Storm Uri in 2021—people were without electricity for weeks, and lives were lost. It still comes up in conversations, but certain regions of the world, developing nations, live that experience almost every day. We need to make that a larger part of the conversation and work to help them.”

Team Quwa, a team of four students from the University of Texas at Austin, took home second place and $7,000 in prize money.

“This journey was both intellectually enriching and personally fulfilling,” Mohamed Awad, a PhD candidate at the Hildebrand Department of Petroleum and Geosystems Engineering, said in a statement from UT. “Through the case competition, we had an opportunity to contribute meaningful ideas to address a critical global issue.”

Team Energy Nexus from India earned the top prize and took home $10,000, according to a release from Switch.

Switch Energy Alliance is an Austin-based non-profit that's focused on energy education. The Switch competition began in 2020. Teams of three to four students create a presentation and 15-minute video. The top five teams present their case studies live and answer questions before a panel of judges.

More than 3,200 students from 55 countries have competed over the years. Click here to watch the 2024 final round.

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